Adidas Group’s web sales jump 56% in Q1
May 11, 2015 02:30 PM
Sporting goods maker and retailer adidas AG built off the momentum generated in its e-commerce business during fiscal 2014 with a strong first quarter of 2015.
“Our e-commerce business continued to grow at strong double-digit rates, with sales up 56%,” said Robin Stalker, chief financial officer, according to a Seeking Alpha transcript of the May 5 earnings call. “By brand, Adidas comp-store sales grew 5%, while Reebok comp-store sales were down 2%.”
Adidas Group operates several e-commerce sites, including Adidas.com, Reebok.com and TaylorMadeGolf.com. The company said its e-commerce channel “continued to see rapid expansion, as retailers leveraged a wide variety of commercial opportunities across mobile technologies and social media.”
In March, adidas AG reported as part of its 2014 annual financial results, global web sales increased 68.8% to $466.3 million (422 million euros) from $276.3 million (250 million euros) in 2013.
Online wasn’t the only bright spot in the first quarter ending March 31 for adidas.
The brand saw record first quarter sales of 4.08 billion euros ($4.55 billion), a 17.3% increase from Q1 2014. When taking into account plans to sell its Rockport division this year, Germany-based adidas AG, No. 88 in the Internet Retailer 2014 Europe 500 Guide, reports a net sales increase of 9% on a currency-neutral basis. The retailer does not break out e-commerce sales.
Comparable-store sales increased 4% during the first quarter, with growth across most regions and all store types, Stalker said.
Adidas AG, which divides its business into regional units—North America, Western Europe, Greater China, Russia/CIS (Commonwealth of Independent States), Latin America, Japan, MEAA (Middle East, Africa and other Asian markets) and other—operated 2,895 stores as of March 31, 18 fewer than the 2,913 stores it had at the end of 2014, Stalker said. Its North America division is No. 246 in the Internet Retailer 2015 Top 500 Guide.
Net income for Q1 was $223 million, up 8.25% from $206 million in the year-ago period.