5/5 Ahmad R. 4 years ago on Google
There
were
discount,
we
bought
In
the
third
quarter,
currency-neutral
revenues
grew
6%.
Revenues
at
the
adidas
brand
also
increased
6%.
This
improvement
reflects
high-single-digit
growth
in
Sport
Performance,
driven
by
increases
in
the
training,
running
and
outdoor
categories.
In
addition,
revenues
in
Sport
Inspired
grew
at
a
mid-single-digit
rate.
Currency-neutral
Reebok
sales
were
up
2%,
driven
by
growth
in
Sport.
The
company’s
top-line
increase
was
driven
by
all
channels,
reflecting
an
acceleration
in
wholesale
revenues
and
continued
double-digit
growth
in
the
company’s
direct-to-consumer
business.
The
latter
was
supported
by
14%
growth
in
e-commerce,
on
top
of
76%
growth
in
the
prior
year
period.
In
euro
terms,
the
company’s
revenues
grew
9%
in
the
third
quarter
to
€
6.410
billion
(2018:
€
5.873
billion).
GROWTH
ACROSS
ALL
MARKET
SEGMENTS
From
a
market
segment
perspective,
the
top-line
expansion
in
the
third
quarter
was
driven
by
sales
increases
in
all
market
segments.
The
combined
currency-neutral
sales
of
the
adidas
and
Reebok
brands
expanded
at
double-digit
rates
in
Emerging
Markets
(+14%),
Russia/CIS
(+13%)
and
North
America
(+10%).
Revenues
in
Asia-Pacific
increased
8%,
driven
by
double-digit
growth
in
Greater
China
(+11%),
while
sales
in
Latin
America
were
up
5%.
Revenues
in
Europe
returned
to
growth
in
the
third
quarter
(+3%).
OPERATING
MARGIN
DECLINES
1.3
PERCENTAGE
POINTS
TO
14.0%
The
company’s
gross
margin
increased
0.3
percentage
points
to
52.1%
(2018:
51.8%).
The
underlying
gross
margin
decline,
reflecting
increased
air
freight
costs
and
a
less
favorable
pricing
mix,
was
less
pronounced
than
expected
due
mainly
to
a
more
positive
channel
mix.
In
addition,
the
company
experienced
higher-than-anticipated
benefits
from
currency
developments
during
the
quarter.
Other
operating
expenses
were
up
13%
to
€
2.486
billion
(2018:
€
2.191
billion)
and,
as
a
percentage
of
sales,
increased
1.5
percentage
points
to
38.8%
(2018:
37.3%).
This
increase
was
mainly
due
to
a
planned
shift
of
costs
from
the
fourth
into
the
third
quarter
to
achieve
a
more
balanced
distribution
of
expenses
throughout
the
second
half
of
the
year.
Marketing
and
point-of-sale
expenses
increased
6%
to
€
753
million
(2018:
€ 713
million),
reflecting
the
different
timing
of
costs
as
well
as
the
company’s
commitment
to
invest
into
its
brands
and
the
sell-through
of
its
products.
As
a
percentage
of
sales,
marketing
and
point-of-sale
expenses
were
down
0.4
percentage
points
to
11.7%
(2018:
12.1%).
Operating
overhead
expenses
increased
17%
to
€
1.733
billion
(2018:
€
1.478
billion),
reflecting
the
planned
cost
shift
as
well
as
the
continued
strong
growth
in
the
company’s
direct-to-consumer
business.
As
a
percentage
of
sales,
operating
overhead
expenses
increased
1.9
percentage
points
to
27.0%
(2018:
25.2%).
The
company’s
operating
profit
remained
stable
at
€
897
million
(2018:
€
901
million),
representing
an
operating
margin
decline
of
1.3
percentage
points
to
14.0%
(2018:
15.3%).
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