ASGA

Fourth quarter adidas Group currency neutral sales grow 4%
Fourth quarter Group revenues grew 4% on a currency neutral basis. This development was due to higher sales in the adidas segment. Reebok and TaylorMade adidas Golf revenues declined. On a regional basis, currency neutral sales grew by double digit rates in both Asia and Latin America. Revenues in Europe remained stable on a currencyneutral basis, while sales in North America decreased. Currency movements had a positive impact on revenues in euro terms. Group sales in euro terms increased 6% to € 2.574 billion in the fourth quarterof 2008 (2007: € 2.419 billion). adidas Group currency neutral sales grow 9% in 2008
In 2008, Group revenues increased 9% on a currency neutral basis, as a result of strong sales growth in the adidas and TaylorMade adidas Golf segments. Currency translation effects negatively impacted Group sales in euro terms. Group revenues grew 5% in euro terms to € 10.799 billion in 2008 from € 10.299 billion in 2007.
Gross margin reaches record level of 48.7%
The gross margin of the adidas Group increased 1.3 percentage points to 48.7% in 2008 (2007: 47.4%). This is the highest annual gross margin for the Group since the IPO in 1995. The improvement was mainly due to an improving regional mix, further own retail expansion and a more favourable product mix.As a result, gross profit for the adidas Group rose 8% in 2008 to reach € 5.256 billion versus € 4.882 billion in the prior year.
Basic and diluted earnings per share increase 20%
In 2008, earnings per share increased at a higher rate than the Group's net income attributable to shareholders due to a decrease in the number of shares outstanding related to the Group's share buyback programme. Basic earnings per share increased 20% to € 3.25 in 2008 versus € 2.71 in 2007. Diluted earnings per share grew 20% to € 3.07 from € 2.57 in the prior year.
adidas backlogs decrease 6% currency neutral
Backlogs for the adidas brand at the end of 2008 decreased 6% versus the prior year on a currency neutral basis. In euro terms, adidas backlogs declined 4%. This development reflects the difficult retail environmentin many major markets. In addition, order backlogs in Europe were negatively impacted by the non recurrence of strong prior year orders for football products supported by the UEFA EURO 2008(TM). Differences in order timing had a negative effect on the development of backlogs in Asia. Footwear backlogs decreased 4% in currencyneutral terms (2% in euros). Growth in North America could not offset declines in Europe and Asia. Apparel backlogs decreased 6% on a currency neutral basis (4% in euros) with declines in all regions.
Currency‐neutral Reebok backlogs decline
Currency neutral Reebok backlogs at the end of 2008 were down 17% versus the prior year. In euro terms,this represents a decline of 18%. Footwear backlogs decreased 10% in currency‐neutral terms (11% in euros) as a result of declines in all regions. Apparel backlogs declined 33% on a currency neutral basis (33% in euros) driven by lower orders for licensed apparel in particularin North America. Due to theexclusion of the own retail business and the high share of at‐once business in Reebok's sales mix, order backlogs in this segment are not indicative of expected sales development.
Group sales to decrease at a low to mid single digit rate
adidas Group sales are forecasted to decline at a low to mid single digit rate on a currency neutral basis in 2009. Revenues in the adidas segment are projected to decrease at a low to mid single digit rate on a currency‐neutral basis. Reebok segment sales are expected to be at least stable compared to the prior year on a currency neutral basis. Currency‐neutral TaylorMadeadidas Golf sales are forecasted to grow at a low‐single‐digit rate due to the consolidation of Ashworth, Inc. for the full 12 month period.
Earnings per share to decline in 2009
In 2009, the adidas Group gross margin is expected to decline comparedto the prior year. A promotional environment in mature markets, as well as expected higher sourcing costs due to increased raw materialand wage costs, in particular in the first half of the year, will contribute to this development. The Group's operating expenses as a percentage of sales are expected to increase mainly as a result of higher expenses for controlled space initiatives in the adidas and Reebok segments. Consequently, the Group's operating margin and earnings per share are projected to decline.