The global revenue of 21q4 was 5.1 billion euros, an increase of 16% and a decrease of 24% in Greater China
Adidas 21q4 (21 / 10 / 1-12 / 31) has a revenue of 5.137 billion euros, about 37.504 billion yuan, a decrease of 3% (excluding the impact of exchange rate here and below), which is mainly due to 1) the serious shortage of supply caused by the epidemic in Vietnam; 2) Xinjiang cotton incident in Greater China; 3) Frequent City closures and isolation in the Asia Pacific region; The company expects the above reasons to reduce revenue by at least 400 million euros, or about 2.92 billion yuan.
In the 21st year, the revenue was 21.234 billion euros, about 155023 billion yuan, an increase of 16%, of which the company estimated that the Xinjiang cotton incident in Greater China, the epidemic in the Asia Pacific region and the pressure of the supply chain had affected the sales of about 1.5 billion euros, about 10.951 billion yuan.
In terms of regions, Greater China’s business has declined significantly due to the Xinjiang cotton incident, epidemic situation and natural disasters,
The revenue of 21q4 was 1.037 billion euros, about 7.571 billion yuan, a decrease of 24.3%, accounting for 20.2% (- 4.8pct); In 21 years, the revenue was 4.597 billion euros, about 33.561 billion yuan, an increase of 3% at the same time.
The revenue of 21q4emea was 1.832 billion euros, about 13.375 billion yuan, an increase of 15.2% at the same time, and the growth trend continued; The revenue of North America was 1.303 billion euros, about 9.513 billion yuan, a decrease of 3.7%. North America was most affected by the supply shortage, and nearly half of the negative effects came from the pressure of the supply chain; The revenue of the Asia Pacific region (excluding Greater China) was 541 million euros, about 3.95 billion yuan, a decrease of 6.0% at the same time; Latin American revenue was 397 million euros, about 2.898 billion yuan, an increase of 8.7%.
By category, the revenue of 21q4 footwear was 2.552 billion euros, about 18.631 billion yuan, a decrease of 8% at the same time; Clothing revenue was 2.282 billion euros, about 16.66 billion yuan, an increase of 1% at the same time; Jewelry and equipment revenue of 303 million euros, about 2.212 billion yuan, an increase of 15%.
The company’s 21q4 net profit was 213 million euros, about 1.555 billion yuan, an increase of 35.3% at the same time; The net profit of 21 years was 2.158 billion euros, about 15.755 billion yuan, an increase of 387.4%.
The shortage of 21q4 supply chain still exists, and the cost pressure is obvious. The freight rate in a single quarter increased by more than 100 million euros year-on-year. As of December 31, 2021, the company’s in transit inventory accounted for 41%, with a year-on-year increase of 12 PCT; In 2021, the on-time arrival rate of ADI brand products decreased from 89% in 2020 to 87% (including direct and wholesale channels).
It is expected that the revenue will increase by 11% ~ 13% in the same period in 22 years, and the number of units in Greater China will increase. The company expects the revenue to increase by 11% ~ 13% (excluding the impact of exchange rate) in 22 years, that is, 23.57 ~ 23.994 billion euros, about 172076 ~ 175176 billion yuan. The negative impact of the Russian Ukrainian war has been considered, and the maximum loss is expected to be 50% of the revenue in the region, about 250 million euros, about 1.825 billion yuan.
The company expects that greater China will grow in medium units, 22q1 will decline in double digits, and then gradually resume growth; It is expected that the growth rate of Chinese local brands will still be higher than that of Adie and other Western brands in Greater China, and the market share of Greater China may continue to decrease in the short term.
The company has newly signed several athletes such as Su Yiming as partners; In 2022, about 30% of the products will be supplied by greater China alone, and the discount of 21q4 e-commerce channel has been improved by 15pct.
In addition, the company announced the replacement of the head of China business on March 8. Mr. Xiao Jiale will replace Jason Thomas as the managing director of Greater China from April 1. Previously, he worked in Adidas since 2002, served as the general manager of Hong Kong Branch, and then was promoted to senior vice president of business in Greater China. In 2019, he became the CEO of urban beauty, Greater China has rich experience in operation and management.
Adidas is a global professional sports giant. Its business has recovered significantly recently, especially in the Middle East and Africa, but at the same time, the company’s business in Greater China is still facing certain pressure. On the one hand, the resumption of the company’s business is conducive to driving the growth of the order volume of the supplier Shenzhou International; On the other hand, after the Xinjiang cotton incident, ADI China’s share continued to decrease due to factors such as domestic consumption enthusiasm, drag of overseas supply chain of supply chain and improvement of national brand competitiveness. It opened future growth space for domestic brands such as Li Ning and Anta. With the enrichment of elements such as scientific and technological design and IP, the strength of national brand products continued to improve.
Suggestions: Li Ning, Anta sports, Shenzhou International, virgin, etc.
Risk warning: repeated overseas outbreaks; The stability of supply chain has an impact on operation efficiency; The impact of Xinjiang cotton incident continued; Risks such as changes in consumers’ preference for shoes and clothing.
