Adidas narrows Q4 net loss on sales growth
- Q4 net loss narrows to EUR44m (US$47.8m)
- Gross margin widens to 47.2%
- Total sales grow 15.4% to EUR4.17bn
Adidas narrowed its fourth-quarter net loss
German sportswear giant Adidas narrowed its net loss in the fourth quarter, boosted by sales growth from its namesake and Reebok brands.
The company's net loss amounted to EUR44m (US$47.8m) in the three months to the end of December, from losses of EUR140m a year earlier. Adidas said earnings were hurt by higher input costs and negative currency effects, but higher sales momentum helped narrow the loss.
Total sales in the quarter grew 15.4% to EUR4.17bn from EUR3.61bn in the year ago period, driven by accelerated momentum at both Adidas and Reebok, which grew sales 18.4% and 8.5% respectively.
Revenues increased in all regions except Russia, with Western Europe sales up 32.8% to EUR1.03bn, and North America sales up 22.2% to EUR744m.
Gross margin widened to 47.2% from 44.9% in the prior year thanks to positive effects from a more favourable pricing, channel and product mix.
Outgoing CEO Herbert Hainer said: "Our 2015 performance is a picture-perfect example of a successful comeback in sport. As a group, today we are stronger and in better shape than ever before."
For the full year, Adidas earnings were up 29% to EUR634m, on sales growth of 16.4% to EUR17bn.
"2015 was a very successful year for the Adidas Group," Hainer added. "We reached all of our major financial goals and exceeded our initial top- and bottom-line targets."
Adidas said it expects currency neutral sales and net income to both increase between 10% and 12% this fiscal.
The slowdown in the Russian economy has forced adidas to revise its plans for the development of its Russian retail chain....
adidas AG (adidas) is a sports lifestyle products manufacturer. The company, along with its subsidiaries designs, develops, markets and retails sports footwear, apparel and accessories....
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adidas in Malaysia will continue to open new stores and strengthen its distribution network within Malaysia....
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