Adidas Latin American Business Grows
In the fourth quarter of 2009, the adidas Group changed its organisational structure to increase its responsiveness to consumer needs and to support sustainable long-term growth. As a consequence of the subsequent changes in internal reporting and in accordance with the new IFRS 8, the adidas Group has now divided its operating activities into six segments: Wholesale, Retail, TaylorMade-adidas Golf, Rockport, Reebok-CCM Hockey and Other Centrally Managed Brands. The results of the adidas and Reebok brands are now combined under Wholesale and Retail.
Sales in North America decreased 6% to € 2.360 billion from € 2.520 billion in 2008. Revenues in Greater China decreased 10% to € 967 million in 2009 from € 1.077 billion in 2008. In Other Asian Markets, sales increased 4% to € 1.647 billion versus € 1.585 billion in the prior year. Revenues in Latin America grew 13% to € 1.006 billion from € 893 million in the prior year.
Following the elimination of regional headquarters, the Group distinguishes seventeen markets which are aggregated into six geographies: Western Europe, European Emerging Markets, North America, Greater China, Other Asian Markets and Latin America.
Currency-neutral sales decrease in nearly all regions:
Currency-neutral adidas Group sales declined in all regions except Latin America in 2009. Revenues in Western Europe declined 5% primarily as a result of lower sales in France and Iberia. In European Emerging Markets, Group sales decreased 7% on a currency-neutral basis, primarily due to declines in Russia as a result of the devaluation of the Russian rouble against the functional currency, the US dollar, which could not be offset by price increases. Sales for the adidas Group in North America decreased 10% on a currency-neutral basis due to declines in the USA and Canada. Sales in Greater China decreased 16% on a currency-neutral basis. Revenues in Other Asian Markets declined 3% primarily as a result of decreases in Japan. In Latin America, sales grew 19% on a currency-neutral basis, with double-digit increases in most of the region’s major markets, also supported by the consolidation of new companies in the region.
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