Financial Data and Key Metrics Changes - The company reported a strong set of results for 2021, adding almost €3 billion to the top line despite external challenges [20] - Gross margin increased by 0.7 percentage points to 50.7%, while operating profit rose by more than 150% [20][33] - Net income from continued operations improved by over €1 billion, supported by a tax benefit related to the Reebok divestiture [21][33] Business Line Data and Key Metrics Changes - The North American business grew by 17%, with strong growth in D2C channels [22] - EMEA business saw a 24% increase, with D2C growing by 20% year-over-year [22] - Latin America experienced a remarkable 47% growth, driven by strong demand across various categories [18][22] Market Data and Key Metrics Changes - EMEA, North America, and Latin America collectively grew by 23% in 2021, reflecting strong demand for the brand [22] - Greater China reported a modest 3% growth due to a challenging market environment and COVID-19 lockdowns [22][29] - The company faced significant supply chain constraints, impacting sales and leading to product outages and shipping delays [19][29] Company Strategy and Development Direction - The "Own the Game" strategy focuses on consumer trends such as At Leisure, Betterment, Digital, Sustainability, and Premiumization [10] - The company aims to invest consistently in people, innovation, and digital transformation to drive growth [10][11] - Sustainability remains a key focus, with a target of 90% of products being sustainable by 2025, achieving a 69% share in 2021 [17] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the ongoing challenges posed by the war in Ukraine, COVID-19 restrictions, and supply chain issues [45] - Despite these challenges, the company remains optimistic about long-term growth opportunities and plans to drive double-digit improvements in 2022 [45][64] - The company is committed to investing close to €3 billion in brand campaigns and product launches to accelerate growth [46] Other Important Information - The company plans to return between €8 billion to €9 billion to shareholders through dividends and share buybacks by 2025 [41][42] - A dividend of €3.3 per share is proposed for 2021, representing a 10% increase from the previous year [43] - The company appointed a new Chief Creative Officer to lead its design community and shape the brand's future direction [48] Q&A Session Summary Question: How is the company addressing the challenges in Greater China? - The company has developed a detailed action plan to achieve mid-single-digit growth in Greater China, focusing on localized campaigns and product creation [60][61] Question: What are the expectations for the 2022 financial outlook? - The company projects currency-neutral revenues to increase by 11% to 13%, with a gross margin expected to reach between 51.5% and 52% [64][65]
adidas(ADDYY) - 2021 Q4 - Earnings Call Transcript