Adidas sales grow6 June 2007
'2006 was a truly exciting year for the Adidas Group, as we strengthened our brand portfolio by acquiring Reebok and exceeded the e10 billion sales mark for the first time in the group's history', said Adidas AG chairman and CEO Herbert Hainer. The group's performance at the 2006 World Cup went a long way towards strengthening the brand's recognition. Adidas Group sales rose by 52% to e10.084 billion (US$13.25 billion) in 2006, strongly supported by the first-time consolidation of Reebok. Sales for the Adidas Group excluding Reebok increased 14% to e7.548 billion for the year, representing their best growth during the past eight years. Double-digit growth was generated in all regions except Europe. Currency-neutral Adidas brand sales grew 14% in 2006 while the Reebok segment added e2.473 billion. The company's gross margin, however, declined 3.6% to 44.6% of sales in 2006 and the group's operating margin declined 1.9% to 8.7% of sales.