Shares in Adidas Group closed up 4.7 percent at 76.38 euros on the Frankfurt Stock Exchange as an upbeat sales forecast overshadowed a swing to losses in the fourth quarter.
The net loss totaled 273 million euros, or $354.1 million, which Adidas attributed to goodwill impairment of 265 million euros, or $343.7 million, resulting mainly from adjusted growth assumptions for Reebok in North America, Latin America and Brazil especially, as well as an increase in country-specific discount rates following the euro debt crisis.
Sales in the three-month period rose 4 percent to 3.37 billion euros, or $4.37 billion. Stripping out the impact of currency fluctuations, the increase stood at 1 percent.
Dollar figures are converted from euros at average exchange rates for the period in question.
The fourth quarter was boosted by net sales gains in Greater China, which were up 19.4 percent, as well as in European emerging markets, up 13 percent, where “the middle market consumer is growing at a rapid pace,” chief executive officer Herbert Hainer said.
North America and Western Europe struggled, reporting net sale losses of 3.4 percent and 2.2 percent, respectively.
Hainer said the company would open more shops-in-shop in the U.S. for a stronger presence and to bolster sales.
The sporting goods firm, headquartered in Herzogenaurach, Germany, is forecasting sales to grow at a midsingle-digit rate in 2013 from 2012’s record of 14.98 billion euros, or $19.16 billion, which is expected toward the second half of the year.
“We are very well positioned to again achieve record sales in 2013,” Hainer said.
He added that the year ahead would also see a “step change in the pace of operating margin expansion,” which is expected to approach 9 percent versus 8 percent in 2012.
Earnings per share are expected to climb between 12 and 16 percent to between 4.25 and 4.40 euros in 2013.
The group cited its “high exposure” to fast-growing emerging markets as well as further expansion of retail as strong sales growth factors. New product launches and innovations in all major units are also envisaged throughout 2013, which will “more than offset the nonrecurrence of sales related to the UEFA Euro 2012 and the London 2012 Olympic Games,” the group noted.
The group’s full-year net income fell 13.8 percent to 524 million euros, or $673.7 million. The contraction resulted primarily from a 14 percent net sales decline by the group’s Reebok brand, where “commercial irregularities” were discovered at its Indian division last April. The brand was also battered by the loss of an American Football League contract and a players’ dispute at the National Hockey League, which resulted in a short season.
Net sales were still up 11.7 percent to a new record level of 14.98 billion euros, or $19.16 billion.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)