German sporting goods company Adidas aims to grow sales to $24 billion by 2015 as it strives to overtake market leader Nike. “Our aspirations are to outperform total market growth … to outgrow our major competitor and have the bottom line grow faster than the top line,” Chief Executive Herbert Hainer said on Monday in a presentation to analysts at the company’s headquarters in Herzogenaurach, Germany.
Last week, Adidas reported strong third-quarter results, lifted by U.S. and eastern European growth, and said it expected 2010 sales to grow by 8 percent at constant currency rates from $14.6 billion in 2009.
Nike recorded sales of $19 billion in its year to May 2010.
Shares in Adidas were up 2.7 percent by 0918 GMT, the top gainers on Germany’s blue-chip index.
“The new strategy plan is very promising and is encouraging investors after strong results,” a trader at Frankfurt’s Alpha brokerage said.
Adidas, the world No. 2, said its key growth markets would be North America, Greater China, Russia/CIS, Latin America, Japan, Britain and India.
ADIDAS, REEBOK GROW
Under the new strategic plan, named “Route 2015,” Adidas is targeting a compound annual earnings growth rate of 15 percent, faster than sales growth, and an operating margin of 11 percent by 2015 at the latest.
Hainer said on Monday the Adidas and Reebok brands would account for more than 90 percent of the planned 45-50 percent increase in sales.
Erich Stamminger, global head of brands, said sales at the Adidas sport performance brand, aimed in particular at athletes, soccer and basketball players, would grow to 8.5 billion euros from 6.2 billion.
Sales at the other Adidas brands, which have more of a style and fashion focus, would grow to 3.7 billion euros from 2 billion, while Reebok sales would rise to 3 billion from 1.9 billion.
“Just one of these divisions will be as big as the Number 3,” Stamminger said, referring to local rival Puma, which last year had sales of 2.5 billion euros.
Hainer also said Adidas, which acquired Reebok in 2006, would continue to play a role in consolidation of the sector.
“It stands to reason that the Adidas group will continue in its role as ‘Consolidator-in-Chief’, taking market share through organic growth or exploring other business opportunities if they align with the strategic brand priorities,” he said.
