International Sports Brands In The First Quarter: Strong International Business And Strong Chinese Market

Recently, international sports brands have announced the first quarter financial reports.

Thanks to the strong contribution of the Chinese market, many sports brands showed high sales volume, Gao Lirun and low inventory status in the first quarter.

Cage

In the first quarter of 2019, Cage realized the latest quarterly sales record: the global quarterly sales amounted to 1 billion 280 million US dollars, an increase of 2.1%; gross profit was 590 million dollars; sales management expenses amounted to $430 million; sales accounted for 33.7%; operating income was 166 million US dollars; international market sales increased by 9.3%; international business occupied 57.8% of all businesses.

In the first quarter, Skech's performance in China was very eye-catching.

By the end of the first quarter, Skech has landed 4 super stores in China, and has actively participated in the variety show. The rich marketing campaign helped Cage to launch a new round of brand promotion in China.

Puma

Similarly, Puma's sales and profit levels hit a record in the first quarter.

The rapid growth of China's market is the main reason for the Asia Pacific region's surging.

In the first quarter, PUMA sales increased to 1 billion 320 million euros, up 16.6% over the same period last year, operating profit increased by 27%; Asia Pacific sales reached 401 million euros, accounting for 30.3% of total sales in the first quarter of PUMA, and the growth rate reached 32.5%; sales in the Americas market were 417 million euro, up 19.8% over the same period last year; sales volume in Europe, Middle East and Africa was 501 million euros, an increase of 4.4% over the same period last year.

PUMA said the trade war between China and the United States liberated China's stock space. By pferring part of the production line to Vietnam and Bangladesh, it accelerated the speed of China's shipment and delivered products to consumers faster.

Andrea

In the first quarter, Andrew's revenue recorded an increase of 1.6% from $1 billion 185 million 400 thousand to $1 billion 204 million 700 thousand, while the North American market earned 843 million 200 thousand dollars in the period, down 2.8% from the US $867 million 500 thousand in the same period in 2018, but it was better than the market expected 5.5% decline; Asia Pacific market revenue rose 24.9%, from 115 million 500 thousand US dollars to 144 million 300 thousand dollars; international business growth was about 12%, accounting for 12% dollars, accounting for the earnings of the quarter.

Although sales in North America continued to decline, Andrew's performance was better than expected, thanks to the good functioning of the Asia Pacific market.

Under the reform plan, Andrew's first quarter inventory dropped by 24%, the lowest level in three years.

Under the restructuring plan, Andemar pushed ahead with international expansion and restructured the North American business, resulting in a continuous improvement in gross profit margin in the first quarter.

Adidas

Adidas's performance has been running smoothly.

In the first quarter of 2019, Adidas's digital business revenue increased by 40%, pushing sales up 6.1% to 5 billion 800 million euros compared with the same period last year. The high profit e-commerce channel promoted Adidas's net profit up 17% over the same period last year. China's market contributed significantly and revenue increased 16%.

This is Adidas's double-digit growth in the twentieth quarter of the Chinese market.

Adidas has got 20 million consumers in Tmall, while its APP downloads in 27 markets in the world are 9 million. Tmall's official flagship store has become ADI's largest single store in the world.

Adidas said it plans to operate Tmall as the "first official website", and set up multi flagship stores such as Shamrock official flagship store.

To sum up, it can be found that Adidas, PUMA, Andrew and Cage have achieved good results in the first quarter of 2019.

The Chinese market has made appearances in the earnings reports of several international sports brands. It is understandable that China is becoming more and more important.

But the more dependent on the Chinese market, the more serious the trade war between China and the US will be.

In May, the Sino US trade war rounded the alarm again, this time the United States announced that it would impose a tariff of 25% on imports of about $200 billion in China's imports.

The original intention of the United States is to impose tariffs on China and let China bear the consequences. But behind the 25% tariff is the higher cost of American consumers.

According to statistics from the world bank, nearly 60% of American imports of footwear products came from China in 2017, and almost all of the shoes sold in the United States are imported products.

To avoid falling into a bad situation, several large sports shoes companies are gradually shifting their production lines in China.

Nevertheless, China still has an important strategic position for these brands.