Tuesday 11 August 2015

Adidas report Q2 2015

Adidas, Q2, 2015, report, front page

My German sports retail company Adidas arrived with their half year report and it was not all as great as one would have hoped it to be. Market response on the report I also did not follow upon the day of the release.

For the report in full please go here and to see my previous summary please visit Adidas report Q1 2014 and to find out more regarding Adidas then please go to analysis of Adidas 2015.

They decided to divest Rockport which was a city shoe brand to get the focus back on sports again... ok, sure... well... So that means that Rockport and spreading out to other areas was yet another failure from the management. The golf segment performed really bad and I find it fairly disturbing to read how they will push in more money, re-organize and cutting costs and for two of the gold brands they even hired an investment bank to "look into" future options. So I assume they will try to divest the two golf brands that they once upon a time stepped into. I start to wonder if Adidas is attempting to be an investment bank for sports brand only with the downside that they seem to loose money each time they sell off the brands again. They have also decided to step into the health apps business with an investment in Runtastic so let us see what they will manage to accomplish with this investment...

Also here I will only look at the highlights for Adidas. We see increased sales by 16% which is excellent! The net income to shareholders are up by 10% so this is also good news. The margins have been dropped slightly which is mainly due to the failed golf segment. At the moment they have earned 1.90 € per share so I hope that I will at least get the same dividend as last year of 1.50 € per share.

Adidas, Q2, 2015, highlights

Conclusion: Some segments of Adidas are not doing very well but the bulk brands are performing strongly and apparently China is helping a lot there with an increased health awareness and sports activity. I will remain as a shareholder.

No comments: