Can CEO Be Reelected After Strong Performance?

Yesterday, Adidas CEO back hahna described the financial season as a "back in full swing" in the first quarter of the year. According to the exchange rate unchanged (the same below), as of March 31st, the group's operating income increased by 9% compared to the same period last year, reaching 4 billion 83 million euros (about 4 billion 569 million US dollars).

In the first quarter, due to a more reasonable combination of products and prices, gross profit increased by 17% over the same period last year, reaching 2 billion 8 million euros ($2 billion 247 million). But at the same time, high gross profit was offset by high cost and negative currency, so the gross profit margin in the first quarter was flat compared with the same period last year, still 49.2%.

In terms of business, the first quarter revenue growth was mainly attributable to the two digit growth of sales volume and the high single digit growth of the brand. In the brand, the consistent strength product line sports performance series and sports fashion series are still the main driving force for growth. Ten years ago, 3 billion 100 million euros ($3 billion 469 million) bought the brand, because of poor performance, it has been a heavy burden, and last year there was news of the sale. In the first quarter, after realizing the high single digit growth, Haina said in an interview that he would never sell the brand. He also stressed that "it is foolish to throw away the present stage". It seems that management is full of confidence in reshaping.

"We have a good start this year. We have two. brand The growth momentum is strong. With innovative sports performance series, fashion design and interactive marketing campaigns, we have brought surprises to global consumers. Hina said in an interview.

However, in addition to the brand and the brand, the business revenue of the other businesses decreased by 1% in the first quarter, including the golf brand Taylor. In the 2014 fiscal year, Taylor's global sales fell by 28%, and brand pressure increased. According to the analysis of earnings reports, the situation of the brand has improved slightly in the first quarter, and the group will not consider selling it for the time being. However, according to the source of the news, there are already some investors in Taylor brand choosing to divest.

Judging from the performance of the various regions of the world, the total sales volume of the company in the first quarter has achieved full growth in all regional markets except Russia and CIS. Among them, the operating income of Greater China increased by 21% compared to the same period last year, reaching 414 million euros (about 461 million US dollars), becoming the largest regional market in the first quarter. He continued to maintain a higher growth rate in Greater China.

In addition, sales in the North American market, which fell for three consecutive years, achieved a 7% revenue growth in the first quarter, and the situation improved. Last year, after Under Armour took away second of the nation's top seat, Mark Kim appointed an experienced new North American regional president, and launched a series of product design and marketing activities catering to American tastes in March. Affected by this, the first quarter's marketing expenditure increased by 26% compared to the same period last year, reaching 5 million 540 thousand euros (about 6 million 166 thousand and 600 US dollars). The growth figures in the North American region now account for the German headquarters.

In Western Europe, Latin America and Japan, yoy's year-on-year revenue growth was 11%, 6% and 7% respectively. In the Middle East, Africa and other parts of Asia, its growth rate has reached 10%. The growth of potential emerging markets is of great significance to brands. In addition, Russia's and CIS regional revenues declined by 3% over the past year, thanks to the deterioration of the Russian economy.

Judging from the situation in the first quarter, the Group expects revenue growth in the 2015 fiscal year to grow at a median digits and gross margin will be between 47.5%-48.5%.

On the day of the release of the earnings report, the stock price rose 3.3%. Financial Report Seems to have been recognized by investors. In recent years, CEO has repeatedly failed to achieve profit targets, which triggered strong dissatisfaction among shareholders. In February this year, they announced the formal search for the new CEO. The appropriate successor has not yet appeared.

Now, Haina and his team have handed in a good report card, which is likely to bring about a turning point for themselves -- extending the term of office to March 2017 of the original contract. In any case, the 60 year old man still needs to be patient.