On March 7, Adidas AG (OTC BB: ADDDY.PK) released year-end earnings for the period ended Dec. 31.
- The consolidation of Reebok sparked strong sales growth. Excluding Reebok, sales still increased a healthy 14%.
- TaylorMade-adidas Golf -- the smallest segment -- experienced 21% sales growth, outpacing both Adidas and Reebok.
- Margins dropped with the addition of Reebok's lower-margin products.
- Review the Foolish articles below for the scoop on competitors Nike
(NYSE:NKE) and K-Swiss(NASDAQ:KSWS) .
(Figures in millions, except per-share data. Local currency is converted into dollars at the rate of $1 = 0.76 euros.)
Income Statement Highlights
|
FY 2006 |
FY 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$13,287.7 |
$8,744.2 |
52.0% |
|
Net Profit* |
$653.6 |
$571.9 |
14.3% |
|
EPS |
$2.96 |
$2.83 |
4.7% |
|
Earnings per ADR |
$1.48 |
$1.42 |
4.7% |
Get back to basics with the income statement.
Margin Checkup
|
FY 2006 |
FY 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
44.6% |
48.2% |
(3.6%) |
|
Operating Margin |
8.7% |
10.7% |
(1.9%) |
|
Net Margin |
4.9% |
6.5% |
(1.6%) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$457.2 |
$2,089.9 |
(78.1%) |
|
Accounts Rec. |
$1,864.5 |
$1,271.6 |
46.6% |
|
Inventory |
$2,117.5 |
$1,620.8 |
30.7% |
|
Liabilities |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$990.9 |
$901.3 |
9.9% |
|
Long-Term Debt |
$3,397.0 |
$1,363.8 |
149.1% |
The balance sheet reflects the health of the company.
Cash Flow Highlights
No data provided. Boo!
Free cash flow is a Fool's best friend.
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool sector editor Joey Khattab does not own any of the shares mentioned. The Fool has a disclosure policy.
