Riding high on exceptionally high 2016 financial year, German sportswear brand Adidas has decided to accelerate strategy execution.
Under its long-term strategic business plan, ‘Creating the New’, the company intends to strongly accelerate sales and earnings growth until 2020. It now expects currency-neutral sales to increase at a rate between 10 per cent and 12 per cent on average per year between 2015 and 2020 (previously: to increase at a high-single-digit rate).
Net income from continuing operations is projected to grow between 20 per cent and 22 per cent on average per year in the five-year period. “Our 2016 results and our positive outlook for 2017 are proof that our strategy is paying off. After the first full year of ‘Creating the New’, we have exceeded our original plan,” said Kasper Rorsted, CEO of Adidas AG.
Adidas revenues increased 18 per cent on a currency-neutral basis in 2016. In Euro terms, revenues grew 14 per cent to Euros 19.291 billion (US $ 20.391 billion).
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The focus of Adidas’ strategy ‘Creating the New’, which was presented in March 2015, remains on significantly elevating brand desirability and thus achieving strong improvements in sales and profitability.
‘Creating the New’ is based on the three strategic pillars Speed, Cities and Open Source, with which the company has made significant progress in the past two years.
As part of plan to accelerate sales and earnings growth, these three strategic pillars has now been supplemented with a special focus on the topics Corporate Culture, Digital, One adidas, North America and Portfolio.
