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Adidas-Salomon Sales Up 9% in First Quarter

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HERZOGENAURACH, Germany (4 May 2000)–The German-French Adidas-Salomon Group reported a 9% sales increase in first quarter of 2000. Sales under the Adidas brand name (including cycling wear and cycling shoe products) totaled EUR1.3 billion (US$1.16bn), up 4% over the same period in 1999. The increase can be attributed to sales jumps in the basketball, soccer, […]

HERZOGENAURACH, Germany (4 May 2000)–The German-French Adidas-Salomon Group reported a 9% sales increase in first quarter of 2000. Sales under the Adidas brand name (including cycling wear and cycling shoe products) totaled EUR1.3 billion (US$1.16bn), up 4% over the same period in 1999. The increase can be attributed to sales jumps in the basketball, soccer, adventure and alternative sports categories. Sales under the Salomon brand, which includes the company’s bicycle component subsidiary Mavic, were up 22% to EUR98 million (US$87mn), due primarily to strong wintersport sales and a rising hiking and outdoor footwear market under the Salomon brand name. In terms of regional performance, Asia continued to deliver the highest growth rates (+37%). In Europe sales grew 8%, and those in North America remained at the same level as last year. According to an Adidas-Salomon press release the gross margin “could not be maintained at the previous year’s level…The negative impacts of a strong US dollar for the group as a whole could only partly be offset by a changed product mix and a lower rate of clearance sales”. The group’s operating profit declined 7% down to a total of EUR 115 million (US$102.6mn) in the first quarter of 2000. The group expects consolidated sales to increase 2% for the entire year. (JB)

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