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06.05.2022

adidas grows double-digit in Western markets in Q1 2022

  • Currency-neutral sales down 3% as supply constraints reduce top-line by € 400 million
  • Western markets continue to show strong momentum with combined currency-neutral sales growing 13% across North America (+13%), EMEA (+9%) and Latin America (+38%)  
  • Gross margin down 1.9pp to 49.9% driven by significantly higher supply chain costs
  • Operating margin of 8.2% reflecting additional investments into brand, DTC, and digital
  • Net income from continuing operations reaches € 310 million
  • FY 2022 outlook for revenue and net income confirmed at the lower end due to the impact from covid-19-related lockdowns in Greater China

“In the first quarter, consumer demand for our brand and products was strong in all Western markets. Our combined sales in North America, EMEA and Latin America grew at a double-digit rate.

  • Currency-neutral sales down 3% as supply constraints reduce top-line by € 400 million
  • Western markets continue to show strong momentum with combined currency-neutral sales growing 13% across North America (+13%), EMEA (+9%) and Latin America (+38%)  
  • Gross margin down 1.9pp to 49.9% driven by significantly higher supply chain costs
  • Operating margin of 8.2% reflecting additional investments into brand, DTC, and digital
  • Net income from continuing operations reaches € 310 million
  • FY 2022 outlook for revenue and net income confirmed at the lower end due to the impact from covid-19-related lockdowns in Greater China

“In the first quarter, consumer demand for our brand and products was strong in all Western markets. Our combined sales in North America, EMEA and Latin America grew at a double-digit rate. Backed by an exceptionally strong wholesale order book and relentless focus on driving growth in our own DTC channels, we expect this positive development to continue for the rest of the year,” said adidas CEO Kasper Rorsted. “In the East, we will return to growth in Asia-Pacific in the second quarter, while we expect the challenging market environment in Greater China to continue. With strong double-digit growth in the vast majority of our markets, representing more than 80% of our business, we are well positioned for success in 2022. “

For the full press release, see attached document.

Source:

adidas AG

Key role for Kipaş in the EU’s multi-million New Cotton Project (c) Monforts
The New Cotton Project logo
30.11.2020

Key role for Kipaş in the EU’s multi-million New Cotton Project

  • Monforts customer Kipaş has been selected as the sole denim manufacturing partner in the €6.7 million European Union-funded New Cotton Project, involving the brands adidas and H&M, working in a consortium with suppliers, innovators and research institutes.

Kipaş, based in Kahramanmaraş, Turkey, is currently installing its third Monforts Montex stenter along with a third Monfortex compressive shrinkage system in a combined configuration dedicated to denim production.

This follows the successful installation and commissioning of the second Montex and Monfortex lines at the Kahramanmaraş plant in 2018, which Kipaş Vice Chairman of the Board Ahmet Öksüz said had immediately exceeded expectations.

  • Monforts customer Kipaş has been selected as the sole denim manufacturing partner in the €6.7 million European Union-funded New Cotton Project, involving the brands adidas and H&M, working in a consortium with suppliers, innovators and research institutes.

Kipaş, based in Kahramanmaraş, Turkey, is currently installing its third Monforts Montex stenter along with a third Monfortex compressive shrinkage system in a combined configuration dedicated to denim production.

This follows the successful installation and commissioning of the second Montex and Monfortex lines at the Kahramanmaraş plant in 2018, which Kipaş Vice Chairman of the Board Ahmet Öksüz said had immediately exceeded expectations.

“We performed a very thorough technical investigation based on the latest Industry 4.0 analysis before the purchase, to determine what we needed, and the Monforts technology met all our requirements,” he said, in an interview with Textilegence magazine. “The Monfortex is equipped with a variety of features not found on classical shrinkage machines and the production can be monitored from beginning to end. It also exceeded our expectations in energy cost savings.”

Kipaş subsequently received a special certificate from Monforts in recognition of its exceptional utilisation of the technology to its full potential.

The latest Montex stenter now being installed at Kipaş is a 12-chamber unit with a working width of 2 metres featuring all of the latest automation features. The Monfortex unit, also with a working width of 2 metres, is in a ‘double rubber’ configuration, comprising two compressive shrinkage units and two felt calenders in line. This allows the heat setting of elastane fibres and the residual shrinkage of the denim to be carried out simultaneously, for a significant increase in production speeds.

“Around 90-95% of denim fabric production now contains elastane fibres and the Monforts system has allowed us to simultaneously increase our production and quality in this respect,” Mr Öksüz said.

Regenerated cotton
For the next three years within the New Cotton Project, Kipaş will manufacture denim fabrics based on the cellulose-based fibres of Infinited Fiber Company of Finland, made from post-consumer textile waste that has been collected, sorted and regenerated.

The patented technology of Infinited, which is leading the consortium of 12 companies, turns cellulose-rich textile waste into fibres that look and feel like cotton.

“We are very excited and proud to lead this project which is breaking new ground when it comes to making circularity in the textile industry a reality,” said Infinited co-founder and CEO Petri Alava. “The enthusiasm and commitment with which the entire consortium has come together to work towards a cleaner, more sustainable future for fashion is truly inspiring.”

Take-back programmes
Adidas and H&M will establish take-back programmes to collect the clothing that is produced, to determine the next phase in their lifecycle. Clothing that can no longer be worn will be returned to Infinited, for regeneration into new fibres, further contributing to a circular economy in which textiles never go to waste, but instead are reused, recycled or turned into new garments.

The aim is to prove that circular, sustainable fashion can be achieved today, and to act as an inspiration and stepping stone to further, even bigger circular initiatives by the industry going forward.

The EU has identified the high potential for circularity within the textile industry, while simultaneously highlighting the urgent need for the development of technologies to produce and design sustainable and circular bio-based materials. Making sustainable products commonplace, reducing waste and leading global efforts on circularity are outlined in the European Commission’s Circular Economy Action Plan.

Fashion brands produce nearly twice as many clothes today as they did 20 years ago and demand is expected to continue growing. At the same time, the equivalent of one garbage truck of textiles is landfilled or burned every second. Most of the textile industry’s environmental problems relate to the raw materials used by the industry – cotton, fossil-based fibres such as polyester, and viscose as the most common man-made cellulosic fibre, are all associated with serious environmental concerns.

PETA Innovatior Award For Animals (c) Pressestelle, PETA Deutschland e.V.
PETA Innovatior Award For Animals
18.01.2018

Sportschuh Futurecraft 4D: „PETA Innovator Award“ für adidas

Zukunftsweisende Entwicklung für Tiere und die Umwelt: Mit dem Sportschuh Futurecraft 4D hat der internationale Sportartikelhersteller adidas den weltweit ersten High-Performance-Schuh mit einer durch digitale Lichtsynthese aus Licht und Sauerstoff gefertigten Zwischensohle entwickelt. Außerdem ist das Schuhmodell lederfrei und vegan – und somit ohne die Haut von Kühen, Schafen, Ziegen oder anderen Tieren gefertigt. Ab sofort sind die ersten 5.000 Paar im ausgewählten Einzelhandel erhältlich. Für diese tierfreundliche Entwicklung zeichnet die Tierrechtsorganisation PETA das Unternehmen nun mit dem „PETA Innovator Award“ aus.

Zukunftsweisende Entwicklung für Tiere und die Umwelt: Mit dem Sportschuh Futurecraft 4D hat der internationale Sportartikelhersteller adidas den weltweit ersten High-Performance-Schuh mit einer durch digitale Lichtsynthese aus Licht und Sauerstoff gefertigten Zwischensohle entwickelt. Außerdem ist das Schuhmodell lederfrei und vegan – und somit ohne die Haut von Kühen, Schafen, Ziegen oder anderen Tieren gefertigt. Ab sofort sind die ersten 5.000 Paar im ausgewählten Einzelhandel erhältlich. Für diese tierfreundliche Entwicklung zeichnet die Tierrechtsorganisation PETA das Unternehmen nun mit dem „PETA Innovator Award“ aus.

„Die Innovationskraft von adidas bei der Herstellung des Futurecraft 4D ist ein Durchbruch für die nachhaltige Produktion und den Tierschutz“, so Harald Ullmann, 2. Vorsitzender von PETA Deutschland e.V. „Die Fertigung in der adidas Speedfactory zeigt, dass es möglich ist, langlebige und innovative Schuhe in Deutschland herzustellen, für die kein Tier seine Haut lassen musste. Die Technologie der Lichtsynthese kann Designern von Schuhen, Accessoires und Taschen sowie den Kunden neue kreative Möglichkeiten des Designs und der Individualisierung eröffnen.“

Bis Ende 2018 sollen insgesamt 100.000 Paar des Futurecraft 4D an Standorten wie der adidas Speedfactory in Ansbach produziert werden. Entstanden ist das neue Schuhmodell in Zusammenarbeit mit dem US-amerikanischen Unternehmen Carbon, das Zwischensohlen aus speziellen lichtgehärteten Kunstharzen produziert. Diese sogenannte „Digital Light Synthesis“ hat das Potenzial, die konventionellen pulverbasierten 3D-Druckverfahren zu ersetzen. So sollen Produktionsgeschwindigkeit und -skalierung, eine mangelhafte Oberflächenqualität sowie Farb- und Materialbeschränkungen überwunden werden, um Energie, Produktionsausschuss und somit wertvolle Ressourcen zu sparen.

Mit dem „PETA Innovator Award“ zeichnet die Tierrechtsorganisation Unternehmen aus, die mit neuartigen Entwicklungen einen zukunftsweisenden Beitrag zum Schutz von Tieren leisten.
 
PETAs Motto lautet, dass Tiere nicht dazu da sind, um sie anzuziehen.

Source:

Denis Schimmelpfennig, PETA Deutschland e.V.