Rising labour costs, higher raw material prices and currency movements will all contribute to a gross margin fall of between 50 and 100bp in 2016, whereas our current projections show an improvement of 20bp. However, management sees the group’s operating margin as being at least unchanged from the (undisclosed) 2015 margin (our projection: +0.2pp for next year). It intends to achieve this by executing further operational improvements.
09 Dec 2015
Gross margin to fall in 2016 while EBIT margin should remain stable
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Gross margin to fall in 2016 while EBIT margin should remain stable
adidas AG (ADS:WBO) | 0 0 1.8% | Mkt Cap: 37,743m
- Published:
09 Dec 2015 -
Author:
Hans-Peter Wodniok -
Pages:
2
Rising labour costs, higher raw material prices and currency movements will all contribute to a gross margin fall of between 50 and 100bp in 2016, whereas our current projections show an improvement of 20bp. However, management sees the group’s operating margin as being at least unchanged from the (undisclosed) 2015 margin (our projection: +0.2pp for next year). It intends to achieve this by executing further operational improvements.