REPORT Shares of Adidas AG gained around 4 percent in Germany after the Sports goods giant reported Friday higher sales in fiscal 2014, with both top and bottom-line reaching financial targets on an underlying basis. The company also announced a definitive deal to sell its Rockport business for 280 million dollars.
In its financial update, the company reported that 2014 net income attributable to shareholders reached the earnings target of around 650 million euros. The net income excludes goodwill impairment losses of around 80 million euros related to the Russia/CIS cash-generating unit, as well as the double-digit million Euro impact of the Rockport divestiture. The earnings target was achieved despite continuing pressure as a result of further currency weakness in Russia/CIS, the company noted.
In euro terms, sales were up 2 percent to 14.8 billion euros from last year's 14.5 billion euros. Excluding the impact from the divestiture, currency-neutral Group sales increased 6 percent. All sales channels contributed to this positive top-line development, with strong double-digit growth in retail. Among brands, Adidas sales grew 11 percent currency-neutral and Reebok's sales increased 5 percent, recording its seventh consecutive quarter of growth.
The company said it recorded double-digit sales growth in Western Europe, Greater China, European Emerging Markets and Latin America. The company is slated to release its final full-year results on March 5. Further, adidas said that it is looking forward to 2015 to continue to invest in its growth opportunities and present long-term vision for the successful future of the firm.