Adidas Group expects to grow business to €17 bn in 2015

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Adidas Group, one of the global leaders in the sporting goods industry, aims at growing the business of the entire Group to €17 billion in 2015. This was announced as part of its its 2015 strategic business plan, which was released at its Investor Day in Herzogenaurach, Germany.

Named ‘Route 2015’, the plan targets a compounded annual earnings growth rate of 15 per cent and an operating margin of 11 per cent sustainably by 2015 at the latest. In addition, the Group plans to lay the foundation for leadership in the sporting goods industry by outgrowing its major competitor in the next five years.

“Brand success means business success for Adidas Group, that is why we have set out clear business targets based on our strong and unmatched brand portfolio,” said Herbert Hainer, CEO, Adidas Group. “We want to achieve qualitative and sustainable growth by building desirable, leading brands in consumers’ and customers’ perception. Over the next few years, we will invest in our brands in order to reach our ambitious, but realistic targets. I am confident that our strategic business plan will lead us into a new era of success for the Group.”

As part of the strategic business plan, Adidas and Reebok are taking clear positions in the marketplace. While Adidas is targeted at competitive sports with its Sport Performance division based on innovation and technology, and towards the sports lifestyle and fashion consumer with its Sport Style division, Reebok will become the fitness and training brand for active and casual sports. Areas within the Adidas and Reebok brands that were identified as key contributors to sustainable growth for the Group include:

• establishing Reebok as the leading fitness and training brand;

• gaining sales and market share in the running and basketball categories within the Adidas Sport Performance division;

• expanding Adidas Sport Style in the fast fashion business with NEO; and

• leading the industry in the fields of customisation and interactivity.

Adidas Group offers a broad range of products around the core brands: Adidas, Reebok, TaylorMade, Rockport and Reebok-CCM Hockey. The Group, which has more than 42,000 employees, generated sales of €10.4 billion in 2009.

– IndiaRetailing Bureau

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