Adidas Will Close All Neo European Retail Outlets And Sell Golf Business.

According to the latest news, Adidas group will sell golf business in order to adjust the structure of the group, and at the same time, it will close all Neo entities in Europe.

Adidas AG Adidas group announced today that its first quarter results will be sold at the same time.

The final decision of the business.

Adidas AG rose by 2% to 115.75 euros early on Wednesday, close to 52 week high.

The global rush buying of Adidas originals brand hot model NMD and the double-digit growth of Adidas Adidas brand training, running and football category become the main driving force of Adidas AG Adidas group.

Last week, the group disclosed earlier that it recorded a 16.8% increase in sales in the first quarter, a 22% increase in fixed exchange rates, and a net sales increase from 4 billion 769 million euros in the same period last year to 4 billion 769 million euros, the highest quarterly sales in the group.

The sales of Adidas Adidas brand, which accounted for 85%, increased by 20.4% to 4 billion 36 million euros, and the fixed exchange rate increased by 25.5%.

The three major markets in Greater China and Western Europe recorded strong growth of 31%, 30% and 26% respectively. Kepler Cheuvreux analyst Juergen Kolb estimated that Adidas originals NMD has already sold 450 thousand pairs since it launched the market in March this year.

While Reebok Reebok grew steadily, sales rose 1% to 416 million euros, and the fixed exchange rate rose by 6.5%.

Fixed exchange rates, including all the markets including Russia, can grow, especially in Japan (44.4%), Greater China (30.2%), Western Europe (24.7%) and North America (21.6%).

Russia and Latin America also recorded an increase of 1.8% and 18.7% respectively, but the real exchange rate declined by 15% and 6.8% respectively.

In the quarterly report, Herbert Hainer, CEO of Adidas AG Adidas group, who will step down at the end of September, pointed out that he was particularly pleased with the performance of North America. He thought the results showed that the group's investment in this important market has been rewarded.

NPD Group analyst Matt Powell estimates that the US sales of Adidas AG Adidas group jumped by more than 50% in March, and the Adidas AG Adidas brand is especially good at lifestyle runners, classic and casual footwear categories.

In the past two years, Adidas AG Adidas group, which is catching up with Under Armour Inc. (NYSE:UA) Andrea, a local sporting goods manufacturer, is now rushing to recover its lost territory.

Euromonitor Natasha Cazin analyst also believes that the group's recent North American strategy is "encouraging", but he is wary of Adidas AG Adidas group's need to beware of the biggest competitor Nike Inc. (NYSE:NKE) Nike group in Western Europe and greater China, because the latter is taking market share.

In the first quarter, TaylorMade golf business continued to decline, sales fell 1.75% to 275 million euros, accounting for about 5.8% of the group's sales.

Adidas AG Adidas has finally decided to sell most of its assets, including TaylorMade, Adams and Ashworth, which only keep Adidas Adidas's golf wear and golf shoes business.

The group said it would engage in specific negotiations with potential buyers.

In 1997, the Group acquired the TaylorMade golf brand through the acquisition of Salomon SA, a French skiing manufacturer. In 2008 and 2012, it purchased Ashworth and Adams for 72 million 800 thousand US dollars and 70 million US dollars respectively.

However, golf has been in the biggest market for many years since its peak in 2000. The number of people participating in the sport has decreased from nearly 30 million to 23 million now. Golf business has been repeatedly involved since 2014. Adidas AG Adidas group's profit is urgent.

The group hired in August last year to invite investment bank Guggenheim Partners LLC to evaluate golf business, and restructured the business to revive the business in order to increase sales price, enhance sales promotion, optimize supply chain and product cost.

Although the TaylorMade golf business has slowed down since then, showing signs of recovery, the recovery measures are expensive.

In the 2015 fiscal year, sales of TaylorMade golf business decreased by 1.3% to 902 million euros compared with the previous year's 913 million euros, while the fixed exchange rate decreased by 13.2%, and sales in 2012 were 1 billion 400 million euros.

In the first quarter, TaylorMade and Adidas golf products recorded an increase of 6% and 3% respectively, but they could not offset the double-digit decline of Ashworth and Adams, and Herbert Hainer revealed that the whole sector was still suffering small losses.

Exane BNP Paribas SA (BNP.PA) Graham Renwick, an analyst at Bank of Paris, France, estimated that the valuation of golf business was at least 270 million euros.

Herbert Hainer, chief executive, points out that stripping off the above three golf brands will help reduce business complexity and enable the group to focus on developing high returns and the most consumer accepted business, such as footwear and clothing.

As for the Reebok Reebok, which was widely rumored to be processed at the end of 2014, Herbert Hainer reiterated its reservation after the earnings analysts' meeting, because the fitness market is booming, and the sales of Reebok Reebok have been increasing for the 12 consecutive quarter.

Herbert Hainer also revealed that the group would shut down all the 16 independent stores of Adidas Neo in Europe, and distribute it to wholesale partners, because wholesale sales were more successful.

He stressed that the decision would not affect China's 2000 Adidas Neo stores operated by authorized partners, and revealed that the sales of the brand reached 1 billion euros last year, and its sales increased by 60% in the first quarter.

In the first quarter, the Adidas AG Adidas group achieved a profit of 490 million euros, an increase of 35.2% from 363 million euros in the same period last year, and the operating profit margin also increased by 140 basis points to 10.3%.

Net profit from continuing operations also soared 37.6% to 350 million euros.

In April 27th, the group raised its annual performance expectations for the second time in three months. It is expected that the annual revenue growth rate will reach 15%, which was expected to be 10%-12%, and the net profit growth from continuous operation for the whole year will also increase from 10%-12% to 15%-18%.

The gross profit margin in the first quarter was 49.4%, a slight increase of 30 basis points over the same period last year.

The group now expects gross profit margin to be reduced by 50 basis points over the 2015 fiscal year 48.3%, rather than 50-100 basis points previously expected.

In 2016, there were many sports events held in the world, including the European Cup, the Centennial cup and the Olympic Games. Especially the first two entries, many teams had Adidas AG.

Group sponsorship.

Although the first quarter results of the first quarter of the world's largest sports shoe manufacturer Taiwan Baocheng group Yuyuan Industrial (Holdings) Holdings Limited showed that the growth of the sports shoes market has slowed down, but with the approaching of sports events, the market is expected to rebound in the two or three quarter.

Adidas AG's early segment growth narrowed to 0.71% and reported 114.25 euros, which has risen 27.1% since 2016.