adidas ag (ADS:Xetra)
adidas ag (ADS) Snapshot
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Open
€86.57
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Previous Close
€86.39
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Day High
€86.80
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Day Low
€84.82
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52 Week High
05/22/13 - €88.35
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52 Week Low
06/29/12 - €54.75
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Market Cap
17.9B
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Average Volume 10 Days
762.3K
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EPS TTM
€2.60
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Shares Outstanding
209.2M
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EX-Date
05/9/13
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P/E TM
32.9x
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Dividend
€1.35
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Dividend Yield
1.58%
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adidas ag (ADS) Related Businessweek News
adidas ag (ADS) Details
adidas AG, together with its subsidiaries, engages in designing, developing, producing, and marketing of athletic and sports lifestyle products worldwide. It offers footwear, apparel, and hardware, such as bags and balls primarily under the adidas and Reebok brands. The company operates in six segments: Wholesale, Retail, TaylorMade-adidas Golf, Rockport, Reebok-CCM Hockey, and Other Centrally Managed Brands. The Wholesale segment is involved in various business activities related to the distribution of adidas and Reebok products to retail customers. The Retail segment engages in business activities related to the sale of adidas and Reebok products directly to consumers through its retail and e-commerce platforms. As of December 31, 2012, this segment operated 2,446 stores, including 1,353 stores under the adidas brand; 363 stores under the Reebok brand; and 730 factory outlets. The TaylorMade-adidas Golf segment offers four brands comprising TaylorMade that designs, develops, and distributes golf clubs, balls, and accessories; adidas Golf consisting of foot wear, apparel, and accessories; Adams Golf that designs and distributes golf clubs and accessories; and Ashworth, which designs and distributes men’s and women’s golf-inspired apparel and footwear. The Rockport segment designs and markets leather footwear for men and women. The Reebok-CCM Hockey segment designs, produces, and distributes ice hockey equipment, such as sticks, skates, and protection gear; and apparel primarily under the Reebok Hockey and CCM brands. The Other Centrally Managed Brands segment includes the activities of Y-3, Porsche Design Sport, and adidas SLVR labels; and Five Ten brand operating in the outdoor action sports sector. This segment also comprises the retail activities of the adidas NEO label. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in May 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.
adidas ag (ADS) Top Compensated Officers
adidas ag (ADS) Key Developments
For the year 2012, Adidas AG is proposing to this annual general meeting a dividend of EUR 1.35 per share. This is a 35% improvement on the 2011 financial year, when the company paid a dividend of exactly EUR 1.
Adidas AG reported Group earnings results for the first quarter ended March 31, 2013. Group revenues were stable on a currency-neutral basis as a result of sales increases in Retail and Other Businesses. Currency translation effects had a negative impact on sales in euro terms. Group revenues decreased 2% to €3.751 billion in the first quarter of 2013 from €3.824 billion in 2012. Income before taxes (IBT) for the Group increased 10% to €427 million from €389 million in 2012. IBT as a percentage of sales improved 1.2 percentage points to 11.4% in the first quarter of 2013 from 10.2% in 2012. This was a result of the Group's operating margin increase and lower net financial expenses. The Group's net income attributable to shareholders increased to €308 million in the first quarter of 2013 from €289 million in 2012. This represents an increase of 6% versus the prior year level. The Group's tax rate increased 2.0 percentage points to 27.5% in the first quarter of 2013 compared to 25.5% in 2012, mainly due to a less favorable earnings mix. In the first quarter of 2013, basic and diluted earnings per share amounted to €1.47 compared to €1.38 in 2012, representing an increase of 6%. The company provided earnings guidance for the year 2013. For the year, the company forecasted its sales to increase at a mid-single-digit rate on a currency-neutral basis. Currency translation is expected to negatively impact top-line development in reported terms. Despite a high degree of uncertainty regarding the global economic outlook and consumer spending, Group sales development will be favorably impacted by the Group's high exposure to fast-growing emerging markets as well as the further expansion of Retail. 2013, the Group expects the operating margin for the company to increase to a level approaching 9.0% 2012 excluding goodwill impairment losses of 8.0%. Improvements in the Group's gross margin as well as lower other operating expenses as a percentage of sales are expected to be the primary drivers of the improvement. The Group tax rate is expected to be at a level between 28.0% and 28.5% and thus more favorable compared to the prior year tax rate of 29.3% excluding goodwill impairment losses. As a result of these developments, earnings per share are expected to increase at a rate of 12% to 16% to a level between €4.25 and €4.40 excluding 2012 goodwill impairment losses of €3.78. This represents net income attributable to shareholders of €890 million to €920 million. The company expects to generate a positive operating cash flow in 2013. The group's gross margin is projected to improve to a level between 48% and 48.5% compared to the prior year. The higher gross margin, coupled with the decrease in other operating expenses, will enable the company to improve operating margin to a level approaching 9%.
Adidas AG has reached an agreement with a labor union to provide additional assistance to Indonesian factory workers that could put an end to a dispute with the University of Wisconsin-Madison, which outfits its sports teams with Adidas equipment.
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Industry Analysis
ADS
Industry Average
| Valuation | ADS | Industry Range |
| Price/Earnings | 33.1x |
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| Price/Sales | 1.2x |
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| Price/Book | 3.1x |
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| Price/Cash Flow | 33.1x |
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| TEV/Sales | 1.0x |
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