Adidas has reported strong first quarter results in Greater China with sales increasing 30% on a currency-neutral basis.
The year-on-year growth was driven by the Adidas and Reebok brands and is in line with estimates based on the brands ongoing upward trend in the China market.
The Adidas brand experienced double digit growth in sales, up 31%, for key performance and lifestyle brands, while Reebok brand revenues also increased by 19%.
Colin Currie, managing director of adidas, Greater China, said in a statement, “[This] outstanding result once again confirms adidas’ rapidly growing appeal amongst Chinese consumers as both a sport performance and sport-inspired lifestyle brand and takes us one step closer to achieving our goal of becoming China and the world’s best sports brand by 2020.”
The first quarter figures build on the company’s strong performance in 2016 which saw sales for Greater China increase 28%, making it the fastest growing market for Adidas globally.
Currie said, “Our unprecedented performance here in Greater China last year smashed all records and provided an incredible start to our latest five-year strategy, Creating the New Greater China 2020. I’m very pleased that we have carried that spectacular energy and momentum into the first quarter of 2017.”
Adidas has also revealed ambitious plans for Reebok, which aims to open 500 ‘Fit-Hub’ stores across China by 2020 as it seeks to become China’s best fitness brand.
China remains one of the key drivers behind Adidas global growth, with the market’s Q1 growth just behind North America at 31% and well ahead of Japan at 21% and MEAA at 15%.
Adidas net income increased 30% year-on-year to $494 million, while group sales grew 18.9%. Ecommerce continues to be a major driver with revenues up 53% year-on-year.
Adidas confirmed its full year outlook for 2017 estimating sales to grow between 11% and 13% with net profits to increase between 18% and 20%.