Adidas China has continued its growth trajectory reporting a 26% increase year-on-year, as the Asia Pacific region also increases 15% in the first quarter of 2018.
China was once again the sportswear brand’s best performing market, contributing to a 17% increase in net profit to $650m.
The Q1 results mark the first financial reporting since Adidas integrated its key markets of Greater China, Japan, South Korea and Southeast Asia-Pacific to one operating market Asia-Pacific.
Colin Currie, managing director of adidas Asia-Pacific and Greater China, said the results reflected the company’s ongoing “energy and momentum”.
“With combined currency-neutral Asia-Pacific growth in Q1 of 15%, we are well-positioned to double-down on executing our 'Creating the New' strategy aimed at transforming Adidas to be the best sports brand in the world. Entering the third year of this five-year strategy, the new Asia-Pacific setup will enable us to further drive our brand aspiration and provide the best brand experience to consumers in this fast-growing market.”
Adidas reported a 10% increase in currency-neutral revenues with sales equally €5.55bn.
E-commerce continues to be the company’s fastest-growing channel with an increase of 27% year-on-year. While the growth was driven by double-digit increases in the running, football and training categories for brand Adidas as well as increases at Adidas Originals.
It was not all smooth sailing, however, with the Reebok brand reporting a 3% decrease in revenues caused by declining sales in the training and running category.
Adidas CEO Kasper Rorsted said in a statement: “We had a successful start to the year that was fully in line with our expectations: Our high-quality top-line growth was driven by our strategic focus areas North America, Greater China and e-commerce. At the same time, we managed to grow the bottom line significantly faster than the top line while continuing to invest into creating brand desire.”
This week, Adidas committed its support of Kanye West amidst a backlash against the artist turned shoe designer following controversial comments during a recent interview.