First Quarter 2009 Results

adidas Group first quarter 2009 results impacted by higher input
prices, currency devaluation effects and restructuring costs

* Currency-neutral Group sales decrease 6% in the first quarter
* Gross and operating margin decline
* Strong focus on debt reduction for the remainder of 2009

First quarter adidas Group currency-neutral sales decline 6%
In the first quarter of 2009, Group revenues decreased 6% on a
currency-neutral basis, as a result of lower sales in all business
segments. Currency translation effects positively impacted sales in
euro terms. Group revenues in euro terms declined 2% to ¤ 2.577
billion in the first quarter of 2009 from
¤ 2.621 billion in 2008.

"We've faced a number of economic and market challenges in the first
quarter of 2009," commented Herbert Hainer, adidas Group CEO and
Chairman. "Our results have been materially affected by higher input
prices, currency devaluation effects and restructuring costs.
Although some of these items will recur again as we go through the
balance of the year, I am convinced we will put most of these effects
behind us in the current year."

adidas Group currency-neutral sales decline in all segments
Currency-neutral adidas segment revenues decreased 6% in the first
quarter of 2009, driven in particular by a decrease in the football
category resulting from the non-recurrence of strong prior year sales
related to the UEFA EURO 2008(TM). Currency-neutral sales in the
Reebok segment declined 4% versus the prior year. Double-digit growth
in the women's category was more than offset by declines in most
other categories. At TaylorMade-adidas Golf, currency-neutral
revenues decreased 6% due to declines in all major categories.
However, this development was partly offset by the consolidation of
Ashworth revenues.

Currency translation effects positively impacted sales in all
segments in euro terms. adidas sales in euro terms decreased 3% to
¤ 1.917 billion in the first quarter of 2009 from ¤ 1.968 billion in
2008. Revenues at Reebok grew 1% to ¤ 458 million versus ¤ 454
million in the prior year. TaylorMade-adidas Golf sales increased 2%
to ¤ 194 million in the first quarter of 2009 from ¤ 191 million in
2008.

+---------------------------------------------------------------------+
| | First | First | Change | Change y-o-y |
| |quarter |quarter |y-o-y in| currency-neutral |
| | 2009 | 2008 | euro | |
| | | | terms | |
|-----------------+--------+--------+--------+------------------------|
| | ¤ in | ¤ in | in % | in % |
| |millions|millions| | |
|-----------------+--------+--------+--------+------------------------|
|adidas | 1,917 | 1,968 | (3) | (6) |
|-----------------+--------+--------+--------+------------------------|
|Reebok | 458 | 454 | 1 | (4) |
|-----------------+--------+--------+--------+------------------------|
|TaylorMade-adidas| 194 | 191 | 2 | (6) |
|Golf | | | | |
|-----------------+--------+--------+--------+------------------------|
|HQ/Consolidation | 8 | 8 | (2) | (10) |
|-----------------+--------+--------+--------+------------------------|
|Total | 2,577 | 2,621 | (2) | (6) |
+---------------------------------------------------------------------+

First quarter net sales growth by segment

adidas Group currency-neutral sales decrease in nearly all regions
Currency-neutral adidas Group sales declined in all regions except
Latin America in the first quarter of 2009. Group sales in Europe
decreased 5% on a currency-neutral basis, due to declines in most
major countries impacted by the non-recurrence of prior year sales
related to the UEFA EURO 2008(TM). In North America, Group sales
declined 17% on a currency-neutral basis due to lower consumer demand
and retailer destocking in the USA. Sales for the adidas Group in
Asia decreased 6% on a currency-neutral basis, as a result of
declines in Japan and China. In Latin America, sales grew 31% on a
currency-neutral basis, with double-digit increases coming from most
of the region's major markets, supported by the new Reebok companies
in Brazil/Paraguay and Argentina.

In euro terms, sales in Europe decreased 6% to ¤ 1.175 billion in the
first quarter of 2009 from ¤ 1.249 billion in 2008. Sales in North
America declined 7% to ¤ 538 million from ¤ 578 million in 2008.
Revenues in Asia grew 6% to ¤ 628 million in the first quarter of
2009 from ¤ 594 million in 2008. Sales in Latin America grew 23% to
¤ 218 million from ¤ 177 million in the prior year.

+-------------------------------------------------------------------+
| | First | First | Change | Change y-o-y |
| | quarter | quarter | y-o-y | currency-neutral |
| | 2009 | 2008 | in euro | |
| | | | terms | |
|----------+----------+----------+---------+------------------------|
| | ¤ in | ¤ in | in % | in % |
| | millions | millions | | |
|----------+----------+----------+---------+------------------------|
| Europe | 1,175 | 1,249 | (6) | (5) |
|----------+----------+----------+---------+------------------------|
| North | 538 | 578 | (7) | (17) |
| America | | | | |
|----------+----------+----------+---------+------------------------|
| Asia | 628 | 594 | 6 | (6) |
|----------+----------+----------+---------+------------------------|
| Latin | 218 | 177 | 23 | 31 |
| America | | | | |
|----------+----------+----------+---------+------------------------|
| Total[1] | 2,577 | 2,621 | (2) | (6) |
+-------------------------------------------------------------------+

First quarter net sales growth by region
[1] Including HQ/Consolidation.
Gross margin negatively impacted by higher input costs
The gross margin of the adidas Group decreased 4.0 percentage points
to 45.2% in the first quarter of 2009 (2008: 49.1%). This development
was mainly due to higher input costs, currency devaluation effects,
in particular related to the Russian rouble, as well as a highly
promotional retail environment. As a result, gross profit for the
adidas Group declined 10% in the first quarter of 2009 to ¤ 1.164
billion versus ¤ 1.288 billion in the prior year.

Operating margin declines 8.5 percentage points
The operating margin of the adidas Group decreased 8.5 percentage
points to 2.2% in the first quarter of 2009 (2008: 10.8%). The
operating margin decline was due to the decrease in Group gross
margin as well as higher other operating expenses as a percentage of
sales. Other operating expenses as a percentage of sales increased
4.7 percentage points to 44.7% in the first quarter of 2009 from
40.0% in 2008, mainly as a result of higher expenses to support the
Group's development in emerging markets. Costs related to
restructuring at Reebok, higher allowances for doubtful debts and the
integration of the Ashworth business also contributed to this
development. These one-time effects in nature and the non-recurrence
of prior year book gains impacted net other operating expenses in an
amount of ¤ 80 million. As a result, Group operating profit decreased
79% to ¤ 58 million versus ¤ 282 million in 2008.

Income before taxes decreases 97%
Income before taxes (IBT) as a percentage of sales decreased 9.2
percentage points to 0.3% in the first quarter of 2009 from 9.6% in
2008. This was a result of the Group's operating margin decrease and
higher net financial expenses. Net financial expenses were negatively
impacted by foreign exchange losses in an amount of ¤ 19 million
resulting from the revaluation of balance sheet items in foreign
currencies. IBT for the adidas Group declined 97% to ¤ 9 million from
¤ 250 million in 2008.

Net income attributable to shareholders declines 97%
The Group's net income attributable to shareholders decreased 97% to
¤ 5 million in the first quarter of 2009 from ¤ 169 million in 2008.
The Group's lower operating profit was the primary reason for this
development. The Group's tax rate increased 19.7 percentage points to
51.7% in the first quarter of 2009 (2008: 32.0%), mainly due to a
less favourable regional earnings mix throughout the Group.

Basic and diluted earnings per share decrease 97% and 95%
respectively
Basic earnings per share declined 97% to ¤ 0.02 in the first quarter
of 2009 versus ¤ 0.84 in 2008. Diluted earnings per share in the
first quarter of 2009 decreased 95% to ¤ 0.04 from ¤ 0.79 in the
prior year.

Group inventories up 18% currency-neutral
Group inventories increased 18% on a currency-neutral basis at the
end of March 2009. In euro terms, inventories increased 28% to
¤ 2.016 billion versus ¤ 1.578 billion in 2008. This was mainly a
result of lower customer demand compared to the Group's expectations
when planning production for the first half of 2009. In addition, the
new Reebok companies in Latin America as well as the consolidation of
the Ashworth business acquired in November 2008 contributed to the
increase. Accounts receivable increased 11% on a currency-neutral
basis. In euro terms, receivables grew 15% to ¤ 1.884 billion
(2008: ¤ 1.645 billion). This increase reflects slower receipt of
payments due to the difficult economic situation in some markets. The
new Reebok companies in Latin America as well as the consolidation of
the Ashworth business also contributed to this increase.

Net borrowings up by ¤ 810 million
Net borrowings at March 31, 2009 amounted to ¤ 2.883 billion, which
represents an increase of ¤ 810 million, or 39%, versus ¤ 2.073
billion at the end of March 2008. Higher working capital requirements
were the main reason for the net debt increase. Since March 31, 2008,
cash in an amount of ¤ 275 million has been used for the meanwhile
completed share buyback programme. Currency translation effects
negatively impacted net borrowings by an amount of ¤ 136 million.
Consequently, the Group's financial leverage increased to 81.8% at
the end of March 2009 versus 72.9% in 2008.

Group business outlook affected by uncertain global macroeconomic
development
Expectations for the development of the global economy and the
sporting goods industry in 2009 are subject to a high degree of
uncertainty. Consequently, the effect global macroeconomic
developments could have on the adidas Group's business outlook
continues to be difficult to forecast, especially with regard to the
second half of the year. In particular, it is difficult to quantify
the impact negative currency translation effects could have on the
Group's top- and bottom-line performance.

Group sales to decline at a low- to mid-single-digit rate
adidas Group sales are expected to decrease at a low- to
mid-single-digit rate on a currency-neutral basis in 2009. Sales for
brand adidas are projected to decline at a low- to mid-single-digit
on a currency-neutral basis in 2009. Reebok segment sales are
expected to be at least stable compared to the prior year on a
currency-neutral basis in 2009. Currency-neutral sales at
TaylorMade-adidas Golf are forecasted to increase at a
low-single-digit rate, supported by the consolidation of Ashworth for
the full twelve-month period.

adidas Group earnings per share to decrease in 2009
In 2009, the adidas Group gross margin is forecasted to decline. A
promotional environment in mature markets, as well as expected higher
sourcing costs due to increased raw material and wage costs, in
particular in the first half of the year, will contribute to this
development. Currency devaluation effects, especially from the
depreciation of the Russian rouble, are expected to also have a
significant negative impact on gross margin in 2009. Other operating
expenses as a percentage of sales are expected to increase as a
result of higher expenses for controlled space initiatives in the
adidas and Reebok segments as well as costs related to restructuring
activities.

As a result of the expected Group gross margin decline and the
projected increase in other operating expenses as a percentage of
sales, the Group's operating margin and earnings per share are
expected to decline. The adidas Group expects earnings per share to
be around breakeven in the first six months of 2009. However, the
Group will generate significantly positive earnings per share again
in the second half of the year, albeit at lower levels compared to
the prior year. This will be a consequence of a moderation of input
cost increases and positive impetus ahead of the 2010 FIFA World
Cup(TM). In 2009, reduction of net borrowings will continue to be a
key priority for the Group. Tight working capital management,
particularly through inventory management, and disciplined investment
activities are expected to help optimise the Group's free cash flow
and contribute to this goal.

Herbert Hainer stated: "We feel the effects of the economic downturn
in many of our key markets. However, our Group is well positioned for
this challenging period, and we are doing all the right things to
keep our company on its long-term growth path. Our biggest asset in
this or any other environment is the strengths of our brands and our
commitment to provide unrivalled consumer experience. We will work
hard throughout the remainder of the year on strengthening our brands
while at the same time implementing a series of initiatives to better
position our Group for sustainable long-term growth"
***

Contacts:

Media Relations Investor
Relations
Jan Runau John-Paul O'Meara
Chief Corporate Communications Officer Head of Investor
Relations
Tel.: +49 (0) 9132 Tel.: +49 (0)
84-3830 9132 84-2751

Kirsten Keck Dennis Weber
Corporate PR Manager Investor
Relations Manager
Tel.: +49 (0) 9132 84-6207 Tel.: +49 (0)
9132 84-4989

Katja Schreiber
Corporate PR Manager
Tel.: +49 (0) 9132 84-3810

Please visit our corporate website: www.adidas-Group.com

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