The sportswear company Adidas reported its first quarter 2013 results with currency-neutral sales remaining stable as a result of sales increases in retail and other businesses.
The gross margin reported a growth of 2.4 percentage points to a level of 50.1 percent, and the Net income that is due to shareholders went up 6 percent to 308 million euros. The groups sales were stable as a result from growth in Retail and Other Businesses. Currency-neutral Retail sales increased 6 percent in comparison the prior year, due to the growth in sales of Adidas and Reebok, same for the revenues in Other Businesses with a 9 percent growth on a currency-neutral basis, due to double-digit sales at TaylorMade-Adidas Golf.
On the other hand the currency translation effects reflected a negative impact on segmental sales in euro tems. Therefore the wholesale revenues decreased 5 percent to 2,481 billion in the Q1 of 2013 from 2,614 billion in 2012. In terms of Retail sales it grew a 4 percent to 722 million against 693 million in the prior year.
According to the group's CEO, Herbert Hainer, the results for the first quarter of 2013 performance demonstrated to be solid. "We delivered stable revenues, despite running against high prior year comparisons due to the shell-in of event-related products for the London Olympics and the European Football Championships as weel as facing a continuation of macroeconomic challenges in Europe", he said. "Our relentless focus on quality sales growth resulted in our highest-ever quarterly gross margin, above 50% for only the second time in our history".