Adidas Group has released its full year reports for the financial year. As well as seeing positive results, the group is also making plans to increase its sustainability measures.
For the full financial year of 2017, the sports group saw a strong year both financially and operationally. Group revenue was up 16 percent, which the reports say is in thanks part to high sales in both Adidas and Reebok labels.
Although the brand as a whole saw an increase of revenue in the double digits, US sales saw a decline, reflective of the number of stores closing within that market place.
The ecommerce side of the brand did particularly well, where revenue grew 57 percent. Net sales for the company were up 15 percent or NZD$36.14 billion.
The company’s gross margin increased 1.2 percent to 50.4 percent. This development was attributed to better pricing and product mix. The company’s operating profit also grew 31 percent.
The company have continued to grow outward into the Asia Pacific region, with the aim to ‘win the consumer’ as one of the brands main outlooks for the coming financial year.
Following the strong operational and financial performance in 2017, the company has also upgraded its 2020 profitability target. The company expects revenue to grow between 10-12 percent, and expects to operating margin increase of 0.5 percent.
As well as expecting an increase of profit, the group have also dedicated to use repurposed plastic in all its products by 2024.
Adidas has been partnered with Parley for the Oceans for a few years now, and in doing so has started using recycled plastics in its sneakers. The group has updated its sustainability model, and now plans to use the recycles plastics in every line.
At the moment, Adidas sells products that are party made with recycled plastics, but not fully. With making over 450 million pairs of shoes annually, the recycling goal is rather large for the company.
According to reports, the partnership already led to one million pairs of shoes sold created from recycled plastics last year. In 2018, it is expected to hit five million.
Eric Liedtke, head of global brands at the company, said in the report that the goal is produce no more new plastic. From cradle to grave to cradle, he explained. “We need to redesign the problem.”