Performance Apparel Markets - Grado Zero Espace Srl

Performance Apparel Markets, 1st quarter 2006
Business update
It now expects percentage
sales growth to be in the
high single digits—
—and net income to grow
at double-digit rates
The cost savings expected
from the integration of
Reebok have been raised to
Euro175 mn and revenue
gains to Euro500 mn
The Adidas brand will see
expansion in four areas
Adidas has formed an
11-year global merchandising
partnership with
the NBA
The group expects sales growth, in percentage terms, to be in the high
single digits for the 2006-08 period, compared with a previous
expectation of mid-single digit growth to high single digit growth.
Net income is expected to increase at double-digit rates over the threeyear
period—and by at least 20% in 2007.
In relation to the integration of Reebok into the Adidas Group, the
expected cost savings (or cost synergies) have been raised to
Euro175 mn (US$210 mn) from an original estimate of Euro125 mn.
Similarly the gains in revenue have been estimated at Euro500 mn
which will be fully realised in 2009.
The group’s largest brand, Adidas, will see future expansion in four
specific areas: basketball, football, running, and Originals.
Adidas has recently formed an 11-year global merchandising
partnership with the National Basketball Association (NBA), making
it the official apparel provider for the NBA starting from the 2006/07
season.
COUNTERFEIT GOODS
The North Face has
been awarded US$1 mn
in a counterfeit case
The award was made
against the Salehs who
adopted a range of
corporate aliases to sell
counterfeit jackets
Fake jackets were sold
to wholesalers and
retailers throughout
New York and the rest
of the USA
The initial investigation
led to the discovery of
thousands more jackets
THE NORTH FACE WINS MILLION DOLLAR
COUNTERFEIT CASE
USA-based outdoor apparel specialist The North Face has been
awarded a US$1 mn judgement in a counterfeit case at the US District
Court for the Southern District of New York.
The award was made against three people—Nabil Saleh, Ibrahim
Saleh and Toufic Saleh—who adopted a range of corporate aliases to
operate a business selling counterfeit jackets bearing The North Face
trademark. The corporate aliases included #1 Spot of NY, Broadway
Outlet, TriStar Wholesale, F&H Fabric Enterprise, and Bare USA.
Fake jackets were sold to wholesalers and retailers throughout New
York and the rest of the USA. The North Face first became aware of
this particular counterfeit operation during 2003 when it was
investigating the source of jackets seized from multiple locations of
Reliance, a chain store in New York.
The initial investigation led to the discovery and confiscation of
thousands more jackets—including ones from various online retail
stores which were thought to have been supplied by the Salehs.
© Textiles Intelligence Limited 49