In the never-ending contest between the global athletic giants, Puma and Reebok have run ahead while Adidas has taken a stumble.
Recent second-quarter earnings reports released by the three companies were favorable for both Puma and Reebok while a tough North American market translated into a decrease in operating profit for Germany-based Adidas.
Puma showed impressive year-on-year increases. On July 31, the German company announced its consolidated sales for the second quarter were up 46%, from 205.9 million euros to 300.9 million euros. All of Puma’s sales regions and product segments grew in the second quarter but its apparel division showed the biggest increase: it grew by a record setting 63 %. Meanwhile, Puma’s footwear division grew 41.2% to 202.1 million euros. In addition, sales of Puma accessories were up 37.7%, to 20.7 million euros.
Massachusetts-based Reebok announced on July 24 that its second-quarter profits had risen 4% from the year before. Profits were $26 million, up from the $25 million in the same period of 2002. The company also boasted a sales increase of 12% from $717 million to $803 million.
The news from Adidas on August 8 was significantly bleaker. The company’s operating profit for the first half of 2003 dropped 10% from the same period last year, from 69 million euros to 62 million euros. The company’s gross profit also declined. It was down 2% in the first half of 2003, from 1.4 billion euros to 1.3 billion euros. North American sales, which comprise one-third of total sales, also fell 17%.
Despite the setbacks, Adidas is still maintaining a 2003 sales growth target of 5% and an earnings increase of 5-10 %.
(From FWD, AP)