Adidas Group First Quarter 2014 Results
Currency-neutral sales increase in nearly all regions
In the first quarter of 2014, currency-neutral Adidas Group sales grew in all regions except North America. Revenues in Western Europe remained stable on a currency-neutral basis, as double-digit increases in Germany and Poland were offset by sales declines in Italy and the UK. In European Emerging Markets, Group sales were up 28 percent on a currency-neutral basis, with double-digit sales increases in nearly all markets.
Currency-neutral sales for the Adidas Group in North America decreased 20 percent, mainly due to double-digit sales declines in the USA. Sales in Greater China increased 5 percent on a currency-neutral basis. Currency-neutral revenues in other Asian markets remained stable, as sales increases in India and South Korea were offset by declines in Japan and Australia. In Latin America, sales grew 19 percent on a currency-neutral basis, with double-digit increases in nearly all markets, in particular Argentina, Brazil, Mexico and Colombia. Currency translation effects had a negative impact on regional sales in euro terms.
Net income attributable to shareholders down 34 percent
The group's net income attributable to shareholders decreased to €204 million in the first quarter of 2014 from €308 million in 2013. This represents a decline of 34 percent versus the prior year level. The group's tax rate increased 1.4 percentage points to 28.9 percent in the first quarter of 2014 (2013: 27.5 percent), mainly due to a less favorable earnings mix.
Basic and diluted earnings per share decrease 34 percent and 35 percent, respectively
In the first quarter of 2014, basic earnings per share decreased 34 percent to € 0.98 versus €1.47 in the prior year. The weighted average number of shares used in the calculation of basic earnings per share was 209,216,186 (2013 average: 209,216,186). Diluted earnings per share decreased 35 percent to € 0.96 from € 1.47 in the prior year. The weighted average number of shares used in the calculation of diluted earnings per share was 215,233,140 (2013 average: 209,216,186). The dilutive effect results from additional potential shares that could be created in relation to the Group's outstanding convertible bond.