September 30, 2016 1:48 PM ET

Textiles, Apparel and Luxury Goods

Company Overview of Adidas AG

Company Overview

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products worldwide. It operates through 13 segments: Western Europe, North America, Greater China, Russia/CIS, Latin America, Japan, Middle East, South Korea, Southeast Asia/Pacifc, TaylorMade-adidas Golf, Reebok-CCM Hockey, Runtastic, and Other centrally managed businesses. The company is involved in wholesale, retail, and e-commerce business activities related to the distribution of adidas and Reebok products to retail and end customers. It offers footwear; apparel; and hardware, such as bags and balls under the adidas and Reebok brands. The company also provides four brands co...

Adi-Dassler-Strasse 1

Herzogenaurach,  91074

Germany

Founded in 1920

57,176 Employees

Phone:

49 91 32 84 0

Fax:

49 91 32 84 22 41

Key Executives for Adidas AG

Chief Financial Officer and Member of Executive Board
Age: 58
Total Annual Compensation: €1.2M
Head of Global Operations and Member of Executive Board
Age: 53
Total Annual Compensation: €1.3M
Head of Global Brands and Member of Executive Board
Age: 50
Total Annual Compensation: €928.7K
Head of Global Sales and Member of Executive Board
Age: 53
Total Annual Compensation: €962.0K
Compensation as of Fiscal Year 2015.

Adidas AG Key Developments

Adidas to Open its U.S. Production Plant in Metro Atlanta

Adidas will open its first U.S. production plant in metro Atlanta, where it will employ about 160. The more than 74,000-square-foot "Speedfactory" in Cherokee County will be online by the end of next year. The Speedfactory model, which relies on automation and production robots, challenges the idea of centralized production and makes the product closer to where the consumers are. That allows the manufacturer to be more flexible to changing consumer tastes and refresh product styles faster. The metro Atlanta plant will produce 50,000 pairs of shoes in 2017 and expects to grow that volume to 500,000 pairs of shoes annually over time. Equipped with cutting-edge manufacturing technologies, the U.S. factory enables Adidas to create products in increasingly high volumes with advanced complexity in color, materials and sizes. The U.S. facility allows Adidas to source and produce locally, limiting long shipping distances. A globally accessible airport, low labor costs and a favorable tax climate make Georgia attractive to foreign manufacturers. Chinese tire manufacturer Sentury Tire is eyeing Georgia for its first U.S. manufacturing plant. The first phase would involve a more than $500 million investment and the creation of more than 600 jobs. When fully built-out, the investment could rise to $1 billion and the workforce would swell to several thousand.

Adidas Group Reports Preliminary Results for the Second Quarter and First Half of 2016; Provides Earnings Guidance for the Full Year 2016

Adidas Group reported preliminary results for the second quarter and first half of 2016. for the quarter, operating profit increased 77% to EUR 414 million compared to EUR 234 million in the second quarter of 2015. As a consequence, the Group's net income from continuing operations increased 99% to EUR 291 million (2015: EUR 146 million). The Group's net income attributable to shareholders, which in addition to net income from continuing operations includes the result from discontinued operations, also grew 99% to EUR 291 million from EUR 146 million in the second quarter of 2015. Basic EPS from continuing and discontinued operations doubled to EUR 1.45 (2015: EUR 0.73). Diluted EPS from continuing and discontinued operations grew 96% to EUR 1.42 (2015: EUR 0.73). For the first half, the company reported group revenues increased EUR 9.191 billion compared to EUR 7.990 billion a year ago. In light of the strong brand momentum and the outstanding financial performance in the first half of 2016, the Group has increased its 2016 financial outlook. The company sales are expected to increase at a rate in the high teens (previously: to increase at a rate of around 15%) on a currency-neutral basis in 2016. The top-line development will be supported by double-digit growth in all regions except Russia/CIS, where sales are now forecasted to grow at a mid-single-digit rate. For the full year 2016, the company expects group's gross margin is expected to be between 48.0% and 48.3%. The company now expects the operating margin to increase to a level of up to 7.5% (previously: to increase to a level of around 7.0%) compared to the prior year level of 6.5%. As a result of the increased top-line expectations and improved operating margin outlook, net income from continuing operations excluding goodwill impairment is now projected to increase at a rate between 35% and 39% (previously: to increase at a rate of around 25%) to a level between EUR 975 million and EUR 1.0 billion (2015: EUR 720 million).

Adidas AG, H1 2016 Earnings Call, Aug 04, 2016

Adidas AG, H1 2016 Earnings Call, Aug 04, 2016

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