Full Year 2021 Adidas AG Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Graham Ian Renwick - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : 2 questions. Just firstly, on North America. I just wonder what your view is on the general health of the U.S. consumer so far this year and also looking ahead across '22? There have been some concerns on U.S. consumer spending this year, particularly given the tough comparatives due to stimulus last year, sharply rising inflation, et cetera. The U.S. sports retailers have been a bit more cautious on '22 recently, all guiding to like-for-like sales declines, whereas you have a much more encouraging guidance of mid- to high-teens growth. I just wanted to understand what's bridging that gap and what is giving you the confidence in the U.S. against that tougher backdrop? And then secondly, just on the supply disruption from the Vietnam closures and the impact of sales. Of the EUR 1 billion net sales impact in Q4 and Q1, should we be thinking that those sales have essentially just remained on order books? And are delayed into Q2 and beyond when supply normalizes and wholesale partners restock? So we've had EUR 400 million of sales that has been carried over from '21 into '22 and then there'll be a EUR 600 million shortfall in Q1, but that's going to be made up later in the year? Or those of EUR 1 billion sales, are they largely lost sales and adidas could have delivered even higher revenue this year if it wasn't for those Vietnam issues. So just trying to get a better understanding of those dynamics.

Question: Jurgen Kolb - Kepler Cheuvreux, Research Division - Analyst : First of all, thanks, guys for such a precise guidance, given the challenging environment and it has even gotten more difficult compared with 2020 as it feels at least. So thanks for that. First question on China. You mentioned that now 30% of the products are done and designed by the local team, where do you think that can go? How far of this autonomy of this specific market can you give to the team around Adrian going forward? And secondly, all the new products you're launching with Lorenzo, with Gucci, (inaudible) , but also the new cooperations and collaborations, how much sales contribution will that or might that actually have in 2022?

Question: Grace Smalley - JPMorgan Chase & Co, Research Division - Analyst : Two questions for me, please, both on China. So firstly, on the guidance for mid-single-digit growth this year, how should we think about the shape of growth? And in particular, in the third quarter, should we still expect double-digit revenue decline similar to what we've seen in the back half of last year? And then more broadly, on the competition, do you attribute some of the market share losses you've seen towards the local brands solely due to kind of the consumer trend and the local price trend? Or do you think also the local brands have improved their product innovation and product quality and that's a structural improvement in the market?

Question: Anne-Laure Bismuth - HSBC, Research Division - Analyst : So I have 2. The first one is, can you provide us some indication about some to the increase in oil derivatives on your gross margin, which is most likely to impact 2022. But it would be great to have that kind of sensitivity? And my second question is about the impact from the World Cup that is embedded in the top line growth for guide for this year. Would it be fair to assume that it would account for 2 percentage points? Or is it -- Yes, if you can provide some details on that.