PARIS — Buoyed by strong business at its namesake brand, Adidas AG announced today it was reinforcing its long-term financial targets, part of its Route 2015 path to growth program, initiated in 2010.
The sporting goods group said it expects global sales of 17 billion euros, or $22.07 billion at current exchange, in 2015.
While the company has not actually raised its overall sales targets, strong business at the Adidas brand and other businesses is counterbalancing a drop in sales at Reebok, which is undergoing repositioning as a fitness brand following the group’s decision not to renew its license with the National Football League.
“Everything I have seen over the past 20 months has only reinforced my confidence that Route 2015 will be an overwhelming success,” Adidas chief executive officer Herbert Hainer stated. “While the first two years of our execution were marked by exceptional sales momentum, we will now focus and deliver even stronger on improving the profitability of our group.”
Adidas maintained its target for sustainable operating margin of 11 percent for 2015.
The company projected 2015 sales of 12.8 billion euros, or $16.61 billion, for the core Adidas brand. This represents a 5 percent increase from the original target of 12.2 billion euros, or $15.8 billion.
The group’s Other Businesses division, which includes TaylorMade-Adidas Golf, Rockport and Reebok-CCM Hockey, will already achieve its 2015 goals in 2012, the group said. The division is now expected to contribute 2.2 billion euros, or $2.9 billion, to group sales in 2015, up from prior expectations of 1.8 billion euros, or $2.34 billion.
For Reebok, however, the group’s new sales target is 2 billion euros, or $2.6 billion, down from 3 billion euros, or $3.9 billion.
The company reiterated its previously stated target of 10 percent currency-neutral sales growth for 2012, earnings growth of between 15 percent and 17 percent, and operating margin nearing 8 percent.