Sales reach record � 6.5 billion
Based on preliminary figures, adidas-Salomon sales in 2002 topped � 6.5 billion, reaching the highest level in the Group's history. This is a 7% year-over-year improvement in euros (2001: � 6.1 billion) and an 11% improvement on a currency-neutral basis. Currency-neutral sales increased in all regions, growing at double-digit rates in both North America and Asia. Sales grew at adidas and TaylorMade-adidas Golf but declined slightly at Salomon. Gross margin for the Group increased 0.7 percentage points from 42.6% to 43.2% as a result of increased adidas own-retail activities, lower clearance sales and an improving product mix.
IBT up 4% despite spending on key initiatives
Operating expenses represented 35.9% of net sales, an increase of 1.1 percentage points versus the prior year. This increase reflects expenditure required for key strategic initiatives, including marketing expenses for the 2002 FIFA World Cup�, expansion of adidas own-retail activities and start-up activities associated with the purchase of the remaining shares of adidas Italy. These expenses were less than originally anticipated at the beginning of the year. As a result, operating profit increased to � 477 million versus � 475 million in 2001. Income before taxes grew 4% to � 390 million, compared to � 376 million in the prior year, helped by lower financial expenses.
Net income grows 10%
Net income for the Group in 2002 increased 10% to � 229 million or � 5.04 per share versus � 208 million or � 4.60 per share in the prior year. This result is at the top end of the Group's targeted earnings range. The increase was driven by both higher sales and gross margin improvements. Lower minorities as a result of the Group's acquisition of the remaining shares of adidas Italy also contributed to the earnings improvement.
adidas-Salomon CEO Herbert Hainer stated: ''adidas-Salomon delivered top-notch results in 2002. In addition to record sales and double-digit earnings growth, we made important strategic progress as a Group with the development of new technological innovations and improved positioning in key markets, and I'm convinced that this positive momentum will continue in 2003.''