adidas-Salomon registered a 10 per cent increase in net sales in the second quarter of this year to reach E1.4 billion ($1.25 billion), with the first half year as a whole increasing by 6 percent to E2.9 billion. The figure exceeds the company’s sales growth targets of 3 to 5 percent for the year.

All product divisions developed positively, with footwear sales increasing 7 per cent to E1.4 billion in the first six months and apparel growing 1 per cent to E1 billion. adidas brand sales increased 8 per cent in the second quarter, driving sales for the group’s core brand for the first half up 4 per cent to E2.4 billion. TaylorMade-adidas Golf increased its net sales during the first six months by 23 per cent to E325 million year-on-year, whilst Salomon sales increased 6 per cent to E163 million.

adidas-Salomon sales in Europe grew 12 per cent in the second quarter and 8 per cent in the first half to reach E1.5 billion, with the largest sales improvements coming from France, Germany and Italy. In Asia, sales grew 20 per cent in the second quarter and 18 per cent for the half to E429 million, with Japan, New Zealand and China the biggest contributors to growth. In Latin America, net sales increased 20 per cent to E82 million, with sales in Colombia up 75 per cent on the same period last year. Double-digit sales increases were also delivered by Argentina, Brazil and Chile.

In North America, net sales fell 1 per cent in the second quarter and 4 per cent year-to-date to E885 million.

The gross margin increased 0.1 per cent to 45.2 per cent in the second quarter, and was maintained in the first half of the year at 43.3 per cent despite the impact of the strong US dollar and the challenging promotional environment in North America. Income before taxes increased 34 per cent in the second quarter and 2 per cent for the half year to reach E139 million as a result of strong sales development, stable margins and strict cost control. This increase occurred despite higher financial expenses. Net income was up 22 per cent to E24 million in the second quarter despite a higher tax rate, and reached E71 million in the first half.

The group said that the second quarter and first half of 2001 results are in line with expectations and support the outlook for the full year. adidas-Salomon continues to expect consolidated sales growth of 3 to 5 per cent for the year and has confirmed its target of 15 per cent earnings growth for 2001.