Adidas remains optimistic for 2016 after reporting its fourth-quarter net loss narrowed to 44 million euros, or $48.2 million, from 139 million euros, or $184.7 million, at the back of strong sales.
The Herzogenaurach, Germany-based sporting goods maker said net income rose 68.7 percent in the three months ending Dec. 31, despite a marketing spend 31 percent higher vis-à-vis the same year-ago period.
The results were also impacted by non-operational goodwill impairment losses totaling 34 million euros, or $37.8 million, for the year, mainly related to its Russian and Latin American businesses, of which 16 million, or $17.8 million, occurred in the fourth quarter.
Sales for the group advanced 12 percent in currency-neutral terms. They totaled 4.2 billion euros, or $4.6 billion, in the quarter, driven by Adidas, up 16 percent, and Reebok, up 5 percent.
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Dollar figures are converted from the euro at average exchange rates for the periods to which they refer.
For the full year, net income rose 29 percent to 640 million euros, or $710.6 million, while currency-neutral group sales rose 10 percent to 16.9 billion euros, or $18.4 billion, driven by double-digit sales growth in Western Europe, Greater China and Latin America as well as the Middle East, Africa and Asia region.
“2015 was a very successful year. We reached all of our major financial goals and exceeded our initial top- and bottom-line targets,” stated Adidas CEO Herbert Hainer, adding: “Today, we are stronger and in better shape than ever before.”
The executive remained optimistic for 2016, which will host the European soccer championships in France and the Olympic Games in Rio.
As reported, Adidas raised its revenue guidance for 2016, expecting to grow at a double-digit rate this year.
The brand is also banking on continued buzz from its partnership with Kanye West, whose Yeezy shoes continue to sell out.
