NEW YORK — Adidas-Salomon ran up its second-quarter sales and profits while backlogs going into the back half of the year hit a nearly four-year high.
Earnings for the quarter strengthened 4.2 percent to $24.3 million, or 55 cents a share, compared with $23.4 million, or 53 cents, a year ago.
Sales for the period ended June 30 were up 10.2 percent to $1.47 billion from $1.33 billion a year ago. Dollar figures have been converted from euros at current exchange.
In North America, backlogs were up 15 percent in local currencies, though down 2 percent in euros. Strength came primarily from footwear, which saw the measure rise 27 percent, which translates to an 8 percent uptick in euros. Apparel backlogs were up 1 percent in constant currencies, the business’ first increase in more than three years. In euros apparel backlogs fell 14 percent.
In Asia and Europe, backlogs in constant currencies were up 21 and 7 percent, respectively. "What is most important for us is the strong sales outlook reflected in the Adidas [brand total] order backlogs, which are up 11 percent on an underlying basis," said Herbert Hainer, chairman and chief executive in a statement. "This is the biggest increase since 1998."
For the half, profits dipped 4.2 percent to $62.2 million, or $1.46 a share, from $69.1 million, or $1.52, a year ago. Revenues increased 7.4 percent to $3.06 billion from $2.85 billion a year ago.
Apparel sales during the half shot up 10 percent to $1.07 billion from $970 million a year ago. The growth was driven by soccer merchandise, which saw an 85 percent increase with help from the World Cup. Footwear sales climbed 7.1 percent during the half to $1.46 billion from $1.36 billion a year ago.
"With the majority of our expenses now behind us, we expect business to accelerate in the second half of the year, particularly in earnings growth," said Hainer.
The ceo rubber-stamped previous estimates for the full year of at least 5 percent sales growth and a 5 to 10 percent rise in profits.
In other news, Adidas named Ross McMullin, who joined the firm as president of Adidas America in July 2001, to its board. McMullin’s appointment expanded the board to seven members. A statement said the move underlined the firm’s "commitment to North America, the biggest sporting goods market in the world, where the company is anticipating double-digit sales in 2002."
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast