Results 2010 - Outlook 2011

Results 2010 Outlook 2011
Group sales:  
Net sales reach € 11.990 billion; Group currency-neutral sales increase 9% On a currency-neutral basis, sales to increase at a rate approaching 12%1)
Group segment sales:   
On a currency-neutral basis:
Wholesale segment sales increase 8%
Retail segment sales increase 18%
adidas brand sales increase 9%
Reebok brand sales increase 12%
Other Businesses sales increase 2%
TaylorMade-adidas Golf sales increase 1%
On a currency-neutral basis, sales to increase:
- at a high-single-digit rate for the Wholesale segment
- at a high-teens rate for the Retail segment2)
- at a high-single-digit rate for Other Businesses3)
Product launches: 
Major 2010 product launches:
adidas:

adiStar Salvation running shoe
adiZero F50 football boot
miCoach training system
Reebok:
ZigTech training shoe
RunTone running shoe
TaylorMade-adidas Golf:
R9 SuperTri driver
Burner SuperFast driver and fairway woods
Rockport:
TruWalk men’s and women’s footwear
Reebok-CCM Hockey:
Reebok 11K skate and CCM U+ Crazy Light skate
Major 2011 product launches:
adidas
:
adiZero F50 Runner running shoe
adiPower Predator football boot
Reebok:
RealFlex footwear
EasyTone Plus footwear
ClassicLite footwear and apparel collection
TaylorMade-adidas Golf:
R11 and R11 TP driver
Rockport:
Janae women’s footwear collection
Reebok-CCM Hockey:
CCM U+ Crazy Light II stick
Gross margin:   
Gross margin: 47.8% Gross margin level between 47.5% and 48.0%
Operating margin:   
Operating margin: 7.5% Increase operating margin to between 7.5% and 8.0%
Operating working capital as percentage of sales: 
Operating working capital as a percentage of sales improves to 20.8% Increase operating working capital as a percentage of sales
Capital expenditure:   
Capital expenditure: € 269 million Capital expenditure range €350 million – € 400 million
Net borrowings:   
Net borrowings reduced substantially to € 221 million;
year-end financial leverage: 4.8%
Further reduction of net borrowings; net borrowings/EBITDA ratio to be maintained below 2
Net income attributable to shareholders: 
Net income attributable to shareholders increases 131% to € 567 million; diluted earnings per share increases 122% to € 2.71 Diluted earnings per share to increase at a rate approaching 16%  to around € 3.154)
Shareholder value: 
adidas AG share price increases 29%;
dividend of € 0.80 per share
(Subject to Annual General Meeting approval)
Further increase shareholder value

* Updated versus guidance as published on August 4, 2011
1) Group sales, on a currency-neutral basis, to increase at a rate around 10%.
2) Retail segment sales, on a currency-neutral basis, to increase at a mid-teens rate.
3) Other Businesses sales, on a currency-neutral basis, to increase at a mid-to high-single-digit rate.
4) Diluted earnings per share to increase at a rate approaching 15% to around € 3.10 to €3.12 

 
 
Last update: November 3rd, 2011