Adidas AG saw its second-quarter earnings rise 25 percent on a slight sales decrease, thanks to cost synergies from integrating Reebok into the German active giant.
For the quarter ended June 30, earnings increased to 104 million euros, or $140 million, from 83 million euros, or $104 million, in the second quarter last year. Earnings per diluted share were 0.49 euros, or 66 cents, from 0.39 euros, or 49 cents.
Sales for the quarter slid 1 percent to 2.4 billion euros, or $3.24 billion, from 2.43 billion euros, or $3.05 billion, in the same period last year, during which Adidas was benefiting from sales related to the 2006 FIFA World Cup. Currency conversions were made at average exchange rates for the respective periods.
"Our second-quarter performance again highlighted the broad strength of the Adidas Group, as well as our ability to drive integration and continue to focus management's attention on Reebok, while still maximizing our bottom-line results," said Herbert Hainer, Adidas AG chairman and chief executive officer, on an earnings call Wednesday.
Gains in Adidas brand merchandise were offset by losses in Reebok, which Adidas acquired last year. Sales of Adidas products were up 7 percent to 1.64 billion euros, or $2.21 billion, compared with 1.53 billion euros, or $1.92 billion, in the second quarter last year, while sales of Reebok fell 14 percent to 514 million euros, or $693 million, from 595 million euros, or $748 million. TaylorMade-Adidas Golf sales dropped 9 percent to 239 million euros, or $322 million, from 264 million euros, or $356 million, driven down by the divestiture of the Greg Norman Collection wholesale business.
By region, sales in North America fell 12 percent to 730 million euros, or $984 million, from 834 million euros, or $1.05 billion, for the quarter. The decline was partially offset by a 32 percent gain in Latin America to 152 million euros, or $205 million, from 115 million euros, or $144 million.
Adidas' largest market, Europe, saw a moderate increase of 3 percent to 967 million euros, or $1.3 billion, from 936 million euros, or $1.18 billion. Asia saw steady growth of 9 percent to 535 million euros, or $721 million, from 490 million euros, or $616 million.For the first half, earnings stayed flat at 234 million euros, or $311 million, from $286 million.
Earnings per share were 1.09 euros, or $1.45, up slightly from 1.06 euros, or $1.30. Sales for the first two quarters increased a modest 1 percent to 4.94 billion euros, or $6.57 billion, from 4.89 billion euros, or $6.01 billion, in the same period in 2006.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
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The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion