World Cup Adidas'S Growth

Adidas, the world cup leader, ushered in a long awaited performance rebound.

Adidas announced that as of June 30th this year, in addition to the Greater China region, with the euro calculated, all other markets in the first half of the year achieved two digit growth.

China's market is sluggish, and Adidas says the main reason is the need to deal with inventory.

Though dragged down by the Chinese market, Adidas's global revenue in the first half of the year was 5 billion 590 million euros, an increase of 11% over the same period in the euro.

Adidas CEO CEO HerbertHainer said: "due to the pull of the world cup in South Africa and the recovery of the Reebok brand in the North American market, Adidas has performed well in the first half of the year. The second quarter of this year, excluding the exchange rate factors, the sales of Adidas and Reebok have increased by 13% and 16% in the same ratio."

In order to sponsor the world cup, Adidas has spent a lot of money this year.

Financial data show that Adidas's sales and marketing expenses in the first half of this year were 756 million euros, up 20% from the 630 million euros a year earlier, and increased by 126 million euros. The increase is mainly used to sponsor the world cup in South Africa.

A big hand in the world cup allowed Adidas to earn enough "eyeballs", which has a strong pulling effect on store sales, coupled with a reduction in raw material costs. Apart from the Greater China region, Adidas's sales of discounted and clear goods accounted for a decrease in total sales. These factors contributed to a sharp rebound in Adidas's gross profit and other financial indicators.

Adidas group's gross profit margin increased by 3.7 percentage points to 48.8% in the first half of the year. The gross profit margin increased Adidas group's gross profit in the first half of this year to 2 billion 727 million euros, a 20% increase compared with 2 billion 269 million euros in the same period last year.

The increase in gross profit increased the operating profit margin of Adidas group by 5.5 percentage points in the first half to 8.1%, compared with 2.6% in the same period last year, and operating profit surged from 129 million euros in the first half of last year to 454 million euros in the first half of this year, an increase of 251%.

Adidas's performance in the first half of the year was better than that in the first half of the year. Adidas has raised its expectations for the whole year's performance. Adidas originally predicted that the wholesale sales volume will grow at a low median level, and now it will be adjusted to a median digit growth rate. Retail business will achieve a two digit growth at a low level.