In the second quarter, Adidas’ currency neutral revenues were up 19 per cent. In euro terms, sales were up 20 per cent in the second quarter. All distribution channels recorded double digit growth during the quarter, with particularly strong support from ecommerce, where revenues grew 66 per cent.
On a currency-neutral basis, the combined sales of the adidas and Reebok brands grew at double-digit rates in all regions except Russia/CIS. Growth was especially strong in the company’s key regions, Greater China and North America as well as in Western Europe, where sales increased 19 per cent. Sales in Russia/CIS declined 11 per cent, reflecting the ongoing challenging consumer sentiment as well as additional store closures during the quarter.
The company’s gross margin increased 0.7 percentage points to 50.1 per cent. This development was mainly due to the positive effects from a better pricing, product and channel mix. While royalty and commission income declined two per cent, other operating income decreased significantly.
Operating profit increased 18 per cent during the second quarter, resulting in an operating margin decline of 0.2 percentage points to 10 per cent. Other operating expenses increased 13 per cent. As a percentage of sales, however, other operating expenses decreased 2.5 percentage points to 41.1 per cent.