Adidas II: Backlogs Are Up 12%

(2:30) Backlogs for the Adidas brand at the end of 1Q06 increased 12% versus the prior year on a currency-neutral basis. (Conference call details below)

In euro terms, this represents an increase of 15%. Footwear backlogs grew 8% in currency-neutral terms (+11% in euros), reflecting improvements in many categories, in particular Sport Performance football and Sport Heritage products. Apparel backlogs grew 13% on a currency-neutral basis (+16% in euros), driven by improvements in the Sport Performance category football as well as in Sport Heritage. Hardware backlogs, which grew at double-digit rates mainly due to improvements in the football category, also contributed to the positive development of Adidas backlogs. As a result of the strong product pipeline, the excellent order book and vigorous growth expectations for Adidas own-retail activities, high-single-digit currency-neutral sales growth is forecasted for Adidas in 2006.

Here are the details of backlog in currency-neutral terms by region:

EUROPE:
? Footwear: +3%;
? Apparel: +8%;
? Total: +7%.

NORTH AMERICA:
? Footwear: +11%;
? Apparel: +10%;
? Total: +11%.

ASIA:
? Footwear: +17%%;
? Apparel: +26%;
? Total: +25%.

TOTAL:
? Footwear: +8%;
? Apparel: +13%;
? Total: +12%.

The European backlog was considered significant. First of all, it reflects sales going into the World Cup in Germany. Hainer called the 3Q portion of the bookings "encouraging, signaling the strength of our post-World Cup business in most markets." He admitted it would be tough matching 2006's football numbers next year, but he insisted it would be at least a ?1 billion business.