Sports Equipment in Europe: Industry Profile

INDUSTRY PROFILE
Sports Equipment in
Europe
Reference Code: 0201-0218

Publication Date: May 2010
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EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market value
The European sports equipment market grew by 1.8% in 2009 to reach a value of $21.1 billion.
Market value forecast
In 2014, the European sports equipment market is forecast to have a value of $23.4 billion, an increase of
11.2% since 2009.
Market segmentation I
Golf equipment is the largest segment of the sports equipment market in Europe, accounting for 18.5% of
the market's total value.
Market segmentation II
Germany accounts for 22.1% of the European sports equipment market value.
Market rivalry
The sports equipment market has seen a great deal of forward integration in recent years as sportswear
manufacturers such as Adidas and Nike have successfully branched out in to retail.

CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY 2
MARKET OVERVIEW 6
Market definition 6
Research highlights 7
Market analysis 8
MARKET VALUE 9
MARKET SEGMENTATION I 10
MARKET SEGMENTATION II 11
COMPETITIVE LANDSCAPE 12
LEADING COMPANIES 15
adidas AG 15
Amer Sports Corporation 19
NIKE, Inc. 22
PUMA AG Rudolf Dassler Sport 27
MARKET FORECASTS 31
Market value forecast 31
APPENDIX 32
Methodology 32
Industry associations 33
Related Datamonitor research 33
Disclaimer 34
ABOUT DATAMONITOR 35
Premium Reports 35
Summary Reports 35
Datamonitor consulting 35

CONTENTS
LIST OF TABLES
Table 1: Europe sports equipment market value: $ billion, 2005–09(e) 9
Table 2: Europe sports equipment market segmentation I:% share, by value, 2009(e) 10
Table 3: Europe sports equipment market segmentation II: % share, by value, 2009(e) 11
Table 4: adidas AG: key facts 15
Table 5: adidas AG: key financials ($) 16
Table 6: adidas AG: key financials (€) 17

Table 7: adidas AG: key financial ratios 17
Table 8: Amer Sports Corporation: key facts 19
Table 9: Amer Sports Corporation: key financials ($) 20

Table 10: Amer Sports Corporation: key financials (€) 20
Table 11: Amer Sports Corporation: key financial ratios 20
Table 12: NIKE, Inc.: key facts 22
Table 13: NIKE, Inc.: key financials ($) 25
Table 14: NIKE, Inc.: key financial ratios 25
Table 15: PUMA AG Rudolf Dassler Sport: key facts 27
Table 16: PUMA AG Rudolf Dassler Sport: key financials ($) 28
Table 17: PUMA AG Rudolf Dassler Sport: key financials (€) 28
Table 18: PUMA AG Rudolf Dassler Sport: key financial ratios 29
Table 19: Europe sports equipment market value forecast: $ billion, 2009–14 31

CONTENTS
LIST OF FIGURES
Figure 1: Europe sports equipment market value: $ billion, 2005–09(e) 9
Figure 2: Europe sports equipment market segmentation I:% share, by value, 2009(e) 10
Figure 3: Europe sports equipment market segmentation II: % share, by value, 2009(e) 11
Figure 4: adidas AG: revenues & profitability 18
Figure 5: adidas AG: assets & liabilities 18
Figure 6: Amer Sports Corporation: revenues & profitability 21

Figure 7: Amer Sports Corporation: assets & liabilities 21
Figure 8: NIKE, Inc.: revenues & profitability 26
Figure 9: NIKE, Inc.: assets & liabilities 26

Figure 10: PUMA AG Rudolf Dassler Sport: revenues & profitability 29
Figure 11: PUMA AG Rudolf Dassler Sport: assets & liabilities 30
Figure 12: Europe sports equipment market value forecast: $ billion, 2009–14 31

MARKET OVERVIEW
MARKET OVERVIEW
Market definition
The sports equipment market consists of equipment for ball sports (baseball, softball, basketball, soccer,
football, volleyball, cricket, hockey, etc), adventure sports (camping, hunting and firearms, skin diving and
scuba, water ski-ing, surfboarding and sailboarding, etc), fitness (exercise bikes, home gym, rowing
machine, hand/wrist/ankle weights, treadmill, jump rope, stepper), golf (clubs, bags, balls, gloves, carts,
etc), racket sports (tennis, squash, badminton, etc), winter sports (downhill and cross-country ski-ing,
snowboarding, etc), and other sports such as archery, billiards, indoor games, bowling, in-line skating,
martial arts, wheel sports, pogo sticks, and fishing equipment. Market values are calculated at retail
selling price (RSP). Any currency conversions used in the creation of this report have been calculated
using constant annual average 2009 exchange rates.
For the purposes of this report, Europe consists of Western Europe and Eastern Europe.
Western Europe comprises Belgium, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain,
Sweden, and the United Kingdom.
Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.

MARKET OVERVIEW
Research highlights
The European sports equipment market had total revenue of $21.1 billion in 2009, representing a
compound annual growth rate (CAGR) of 2.2% for the period spanning 2005-2009.
Golf equipment sales proved the most lucrative for the European sports equipment market in 2009, with
total revenues of $3.9 billion, equivalent to 18.5% of the market's overall value.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.2% for the five-
year period 2009-2014, which is expected to drive the market to a value of $23.4 billion by the end of
2014.

MARKET OVERVIEW
Market analysis
The European sports equipment market has experienced relatively stable growth in recent years. The
average growth rate is predicted to remain the same over the next five years.
The European sports equipment market had total revenue of $21.1 billion in 2009, representing a
compound annual growth rate (CAGR) of 2.2% for the period spanning 2005-2009. In comparison, the
German and UK markets grew with CAGRs of 0.8% and 3.8% respectively, over the same period, to
reach respective values of $4.7 billion and $3.9 billion in 2009.
Golf equipment sales proved the most lucrative for the European sports equipment market in 2009, with
total revenues of $3.9 billion, equivalent to 18.5% of the market's overall value. In comparison, sales of
adventure sport equipment generated revenues of $3.5 billion in 2009, equating to 16.6% of the market's
aggregate revenues.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.2% for the five-
year period 2009-2014, which is expected to drive the market to a value of $23.4 billion by the end of
2014. Comparatively, the German and UK markets will grow with CAGRs of 1.3% and 3.6% respectively,
over the same period, to reach respective values of $4.9 billion and $4.7 billion in 2014.

MARKET VALUE
MARKET VALUE
The European sports equipment market grew by 1.8% in 2009 to reach a value of $21.1 billion.
The compound annual growth rate of the market in the period 2005–09 was 2.2%.
Table 1: Europe sports equipment market value: $ billion, 2005–09(e)
Year $ billion € billion % Growth

2005 19.3 13.9
2006 19.8 14.2 2.7
2007 20.2 14.5 2.1
2008 20.7 14.9 2.4
2009(e) 21.1 15.1 1.8
CAGR: 2005–09 2.2%
Source: Datamonitor DATAMONITOR
Figure 1: Europe sports equipment market value: $ billion, 2005–09(e)

MARKET SEGMENTATION I
MARKET SEGMENTATION I
Golf equipment is the largest segment of the sports equipment market in Europe, accounting for 18.5% of
the market's total value.
The adventure sport equipment segment accounts for a further 16.6% of the market.
Table 2: Europe sports equipment market segmentation I:% share, by value, 2009(e)
Category % Share
Golf equipment 18.5%
Adventure sport equipment 16.6%
Fitness equipment 15.4%
Ball sport equipment 15.2%
Winter sport equipment 12.6%
Racket sport equipment 5.9%
Other 15.8%
Total 100%
Figure 2: Europe sports equipment market segmentation I:% share, by value, 2009(e)

MARKET SEGMENTATION II
MARKET SEGMENTATION II
Germany accounts for 22.1% of the European sports equipment market value.
France accounts for a further 19.9% of the European market.
Table 3: Europe sports equipment market segmentation II: % share, by value, 2009(e)
Category % Share
Germany 22.1%
France 19.9%
United Kingdom 18.9%
Italy 10.5%
Spain 6.7%
Rest of Europe 21.8%
Total 100%
Figure 3: Europe sports equipment market segmentation II: % share, by value, 2009(e)

COMPETITIVE LANDSCAPE
The sports equipment market will be analyzed taking sports equipment retailers as players. The key
buyers will be taken as individual consumers, and sports equipment manufacturers as the key suppliers.
The sports equipment market has seen a great deal of forward integration in recent years as sportswear
manufacturers such as Adidas and Nike have successfully branched out in to retail.
The European market for sports equipment is fragmented despite the presence of some larger players.
The wide range of products available, the existence of a large number of retailers and the fact that some
large sports equipment companies have integrated forwards into retail all mean that buyer power is
prevented from becoming disproportionately strong in this market. The retail of sports equipment offers
some economies of scale such as bulk buying, but it is still possible to enter the market on a modest scale
by producing, for example, small quantities of custom-made golf clubs, although uninspiring revenue
growth in recent years makes entering this market a less attractive prospect for newcomers. Many
companies in this market also sell sports apparel and footwear, which reduces their reliance on sales of
sports equipment and rivalry, is weakened further by the policy of many large corporations to outsource
manufacturing.
Typical sports equipment retailers include multiples such as Groupe Go Sport and JJB Sports; numerous
independents; club stores; department stores and e-commerce operations. Department stores and
hypermarkets are also important as these have the space to stock and display large pieces of equipment
such as home gyms. Consumer loyalty is often more towards a particular manufacturer brand, rather than
to a retailer, and most retailers will stock multiple brands. This strengthens buyer power, and can leave
'pure' retailers somewhat vulnerable to manufacturers who also operate in the retail market through their
own branded stores or online sales. Switching costs are very low for buyers, which strengthens buyer
power. Buyer power is assessed as moderate overall.
Sports equipment production may be characterized by three related themes: research & development,
innovation, and adoption of new materials. Previously distinct boundaries between sportswear and casual
wear are becoming increasingly blurred. Although the focus of this report is on sporting equipment and
not garments the market’s crossover potential cannot be denied. This leads to the potential for equipment
products to be stocked alongside sports garments in populist retail outlets such as super/hypermarkets.
Fast-expanding sectors, like snowboard, mountain bike and cycling, are rather atomized, and innovation
here is much more on new product and materials. In areas such as these, equipment and lifestyle go
hand in hand, given the developing nature of extreme/adrenaline sports the potential for growth cannot be
ignored. The ability of manufacturers to differentiate their products in these ways increases their supplier
power.
The suppliers of some of the materials used to make the equipment, such as rubber and textiles, include
small factories and operate in a fragmented up-stream landscape, which also strengthens the bargaining
power of the equipment manufacturers relative to their own suppliers. Furthermore, outsourcing is a
prominent feature of this market.

Large corporations such as Nike often design their products in places like the US and then sub-contract
manufacturers in countries like South Korea, India, China and Indonesia for the actual production of the
goods. A significant proportion of Adidas products, for example, are produced at outsourced
manufacturing locations around the world. The large number of relatively low-cost factory options
available to these large corporations combined with the financial muscle of these sports equipment
companies considerably strengthens the power held by these suppliers relative to their retail buyers.
It is uncommon for sports equipment retailers to integrate backwards into the production of sports
equipment, which strengthens supplier power. Forward integration among sports equipment
manufacturers into the retail of sports equipment is highly likely as they often open and operate their own
retail outlets, as well as direct e-commerce sites. Some sports equipment companies, such as Nike, have
integrated forwards into selling directly to the consumer through company-owned retail outlets and a
number of smaller companies take advantage of the internet to sell directly to consumers via company
websites. Suppliers are not usually solely dependent on one type of sports equipment for their revenues
and can often find alternative markets through diversification. Overall, supplier power is strong.
Entry to the sports equipment retail market may be achieved by starting up a new company or by
diversifying an existing company's operations into the retail of sports equipment. Although some brands of
sports equipment are used across more than one sport (e.g. Slazenger, Wilson, Head), a considerable
proportion is produced and sold by specialists. As a consequence of this, it is possible to enter this market
on a small scale without the need to invest in a large chain of retail outlets. Custom-made sports
equipment, such as Balabushka pool cues, is a good example of this. George Balabushka developed,
made and sold his own pool cues. Many innovations of his are now industry standard, and the high
reputation of his products among end-users is a competitive advantage.
However, there is a need for significant logistical arrangements, such as good transport and distribution
channels. Although some large, existing sports equipment retailers may be able to move in to new
markets and open their own retail outlets, this strategy often proves too costly for smaller retailers or
startups. Market revenue growth over recent years has been unexciting, which also makes the market
less attractive to new companies. Overall, there is a moderate likelihood of new entrants.
Substitutes to sports equipment may include any products purchased for the purpose of
enhancing/passing leisure time as generally sport is a recreational activity. This is certainly the point of
view of retailers, who deem substitutes for sports equipment to include other leisure products such as
books, board games, music, and computer games.
The severity of the threat depends on the business model of the retailer, and can be hard to assess. For
example, many customers of specialist sports stores will often not consider the alternatives ‘beneficial’,
because of their personal preference for playing sport over playing computer games. However, it will be
harder for the specialist retailers to generate revenues from those potential customers who actually
remain wedded to their consoles.

A department store will generally be able to offer both sports equipment and substitutes, safeguarding its
revenues against fickle buyers through the diversity of its product lines. However, without detailed
knowledge of the mark-up on different leisure products, it is difficult to know how substitute products might
impact its profitability.
The threat from substitutes is assessed as strong overall.
The market for sports equipment retail is fairly fragmented. It is difficult for retailers to differentiate
themselves effectively as many stock the same products, which strengthens rivalry. A number of
companies in this market also sell sports apparel, footwear and other sports accessories. These products
often represent a significant segment of retailers’ revenues, which makes them less reliant on the sports
equipment market and also decreases rivalry somewhat.
Purchasers have a fairly wide range of products to choose from, with low switching costs.
Unexciting market revenue growth in recent years tends further to strengthen rivalry, which is assessed
as moderate overall.

LEADING COMPANIES
LEADING COMPANIES
adidas AG
Table 4: adidas AG: key facts
Head office: Adi Dassler Platz 1 2, 91074 Herzogenaurach DEU

Telephone: 49 9132 840
Fax: 49 9132 84 2241
Website: www.adidas-group.com
Financial year-end: December
Ticker: ADS
Stock exchange: Frankfurt
Source: company website DATAMONITOR
adidas is one of the largest companies in the sporting goods industry. The group has divided its operating
activities by major brand into three divisions: adidas, Reebok and TaylorMade-adidas Golf. The group
operates through more than 150 subsidiaries in Europe, the US and Asia, each focusing on a particular
market or part of the manufacturing process.
The adidas brand focuses on sports. It offers footwear, apparel and accessories through two divisions,
namely sport performance and sport style. The sport performance division develops sports products,
focused on running, football, basketball, tennis and training. The sport style division is focused on fashion-
conscious consumers and includes collections like the 'Y-3' designed by Yohji Yamamoto, a Japanese
fashion designer based in Tokyo and Paris.
The focus of the Reebok brand is more on style. It offers sports, fitness and casual footwear, apparel and
equipment under the Reebok brand. Rebook operates through two divisions Reebok-CCM Hockey and
Rockport.
Reebok-CCM Hockey is one of the world's largest designers, manufacturers and marketers of hockey
equipment and apparel with two of the world's most recognized hockey brand names: Reebok Hockey
and CCM Hockey. Rockport designs and markets dress, casual and outdoor footwear as well as apparel
and accessories.
The TaylorMade-adidas Golf brand offers a range of golf clubs, accessories, footwear and apparel. It
combines three of golf's most well-known brands: TaylorMade, adidas Golf, and Ashworth.

LEADING COMPANIES
Most of the group’s products are manufactured by third party independent manufacturers. During FY2008,
to minimize production costs, adidas outsourced over 95% of production to such manufacturers, primarily
located in Asia.
The group undertakes research and development activities on a global scale. Research and development
(R&D) activities within the adidas group are decentralized, with each brand having its own research,
design and development operations across several countries.
The group markets its products through an extensive distribution channel. As December 2008, the total
number of adidas stores was 1,332.
The group has 796 concept stores, 381 factory outlets, 150 concession corners and five e-commerce
stores worldwide.
adidas has concluded several endorsement contracts with several sportsmen and women. Sportsmen
under contract include David Beckham (soccer), Kevin Garnett and Tim Duncan (basketball), and Sergio
Garcia (golf). It also provides the team kit wear for the French football team and clubs such as Real
Madrid, AC Milan, and FC Bayern Munich.
Key Metrics
The company recorded revenues of $14,435 million in the fiscal year ending December 2009, a decrease
of 3.9% compared to fiscal 2008. Its net income was $341 million in fiscal 2009, compared to a net
income of $893 million in the preceding year.
Table 5: adidas AG: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 9,227.4 14,021.9 14,320.9 15,016.1 14,434.9
Net income (loss) 532.6 671.6 766.2 892.7 340.7
Total assets 7,995.4 11,651.1 11,576.0 13,255.7 13,253.0
Total liabilities 4,224.4 7,707.6 7,372.5 8,528.0 7,328.0
Employees 15,935 26,376 31,344 36,129 38,982
Source: company filings DATAMONITOR

LEADING COMPANIES
Table 6: adidas AG: key financials (€)
€ million 2005 2006 2007 2008 2009

Revenues 6,636.0 10,084.0 10,299.0 10,799.0 10,381.0
Net income (loss) 383.0 483.0 551.0 642.0 245.0
Total assets 5,750.0 8,379.0 8,325.0 9,533.0 9,531.0
Table 7: adidas AG: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 5.8% 4.8% 5.4% 5.9% 2.4%
Revenue growth 13.2% 52.0% 2.1% 4.9% (3.9%)
Asset growth 29.9% 45.7% (0.6%) 14.5% 0.0%
Liabilities growth 8.5% 82.5% (4.3%) 15.7% (14.1%)
Debt/asset ratio 52.8% 66.2% 63.7% 64.3% 55.3%
Return on assets 7.5% 6.8% 6.6% 7.2% 2.6%
Revenue per employee $579,067 $531,616 $456,894 $415,625 $370,296
Profit per employee $33,421 $25,463 $24,444 $24,709 $8,739

LEADING COMPANIES
Figure 4: adidas AG: revenues & profitability
Figure 5: adidas AG: assets & liabilities

LEADING COMPANIES
Amer Sports Corporation
Table 8: Amer Sports Corporation: key facts
Head office: Makelankatu 91, 00610 Helsinki, FIN

Telephone: 358 9 7257 800
Fax: 358 9 7257 8200
Website: www.amersports.com
Ticker: AMEAS
Stock exchange: NASDAQ OMX
Amer Sports Corporation (Amer Sports) is a Finland based company that develops, manufactures and
sells sports equipment. The company and its subsidiaries operate in over 30 countries and their primary
markets are the US and Europe.
Amer Sports operates through three business segments: winter and outdoor, ball sports, and fitness.
Amer Sports, through its winter and outdoor segment, offers winter sports equipment under the brand
names Salomon, Atomic and Bonfire; apparel and footwear under Salomon and Arc'teryx brands; cycling
systems under Mavic brand; and sports instruments under Suunto brand.
The company offers advanced equipment under the Wilson brand through its ball sports segment.
Wilson's core categories include baseball, football, basketball, softball, bats, volleyball, soccer, youth
sports, apparel, golf products and footwear. It also offers tennis, racquetball, squash, badminton and
platform tennis products under racquet sports category.
The fitness segment of Amer Sports offers fitness equipment for commercial and home markets under the
brand name Precor. Its main products include aerobic exercise equipment, strength-training systems and
entertainment systems. Precor is one the world's leading manufacturers of elliptical cross trainers.
In addition, the company manufactures air drive computers under the brand Suunto.
Key Metrics
of 2.7% compared to fiscal 2008. Its net income was $44 million in fiscal 2009, compared to a net income
of $47 million in the preceding year.

LEADING COMPANIES
Table 9: Amer Sports Corporation: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 2,408.4 2,492.8 2,297.1 2,191.4 2,132.2
Net income (loss) 104.6 98.0 25.7 47.3 43.5
Total assets 2,344.8 2,304.8 2,286.7 2,310.9 2,120.0
Employees 6,667 6,553 0 0 6,338
Table 10: Amer Sports Corporation: key financials (€)
€ million 2005 2006 2007 2008 2009

Revenues 1,732.0 1,792.7 1,652.0 1,576.0 1,533.4
Net income (loss) 75.2 70.5 18.5 34.0 31.3
Total assets 1,686.3 1,657.5 1,644.5 1,661.9 1,524.6
Total liabilities 1,032.0 1,046.0 1,134.8 1,154.0 791.9
Table 11: Amer Sports Corporation: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 4.3% 3.9% 1.1% 2.2% 2.0%
Revenue growth 63.6% 3.5% (7.8%) (4.6%) (2.7%)
Asset growth 103.0% (1.7%) (0.8%) 1.1% (8.3%)
Liabilities growth 179.5% 1.4% 8.5% 1.7% (31.4%)
Debt/asset ratio 61.2% 63.1% 69.0% 69.4% 51.9%
Return on assets 6.0% 4.2% 1.1% 2.1% 2.0%

LEADING COMPANIES
Figure 6: Amer Sports Corporation: revenues & profitability
Figure 7: Amer Sports Corporation: assets & liabilities

LEADING COMPANIES
NIKE, Inc.
Table 12: NIKE, Inc.: key facts
Head office: Nike, Inc., One Bowerman Drive, Beaverton, Oregon 97005 6453,
USA
Telephone: 1 503 671 6453
Fax: 1 503 671 6300
Website: www.nike.com
Financial year-end: May
Ticker: NKE
Stock exchange: New York
Nike is primarily engaged in the design, development and worldwide marketing of footwear, apparel,
equipment and accessory products. The company sells its products primarily through its retail stores and
various distributors and licensees, in over 180 countries across Americas, Europe, the Middle East,
Africa, and Asia-Pacific.
Nike's operations are supported by manufacturing, sourcing and distribution facilities. The company
procures raw materials including natural and synthetic rubber, plastic compounds, foam cushioning
materials, nylon, leather, canvas and polyurethane films to make Air-Sole cushioning components used in
footwear from Nike IHM, Nike (Suzhou) Sports Company, wholly owned subsidiaries of Nike and
independent contractors located in China and Taiwan.
Nike and its contractors and suppliers purchase raw materials for apparel products in the country where
they manufacture apparel products for Nike and its subsidiaries. The key raw materials used in apparel
are natural and synthetic fabrics, thread, plastic and metal hardware and specialized performance fabrics
designed to repel rain and retain heat.
The company operates one footwear factory which accounts for around 6% of the company's total
footwear production. In addition to manufacturing, the company procures footwear from contract suppliers
located in China, Vietnam, Indonesia, and Thailand. Of the total Nike branded footwear the company
procured 36% from manufacturers located in China, 33% from Vietnam, 21% from Indonesia and 9% from
Thailand. The company also has manufacturing agreements with independent factories in Argentina,
Brazil, India, Italy and South Africa which manufacture footwear for the company to be sold in those
countries.

LEADING COMPANIES
Nike procures apparel for sale from the US and other international markets from independent contract
manufacturers located in 34 countries such as China, Thailand, Indonesia, Malaysia, Vietnam, Turkey, Sri
Lanka, Honduras, Mexico, Taiwan, Israel, Cambodia, India and Bangladesh. Its largest single apparel
factory accounted for approximately 8% of total 2008 apparel production.
Through a futures ordering program the company offers its merchandise to retailers in the US and other
international locations.
In the US, the company distributes footwear through its distribution centers located in Wilsonville, Oregon
and Memphis. Nike distributes apparel and equipment from centers located in Memphis, Tennessee,
Tigard, Oregon, and Foothill ranch, California.
Nike operates 11 distribution centers in Europe, Asia, Australia, Africa and Canada from which it
distributes to its stores in international locations.
Nike's operations can be divided into four product lines: footwear, apparel, equipment and other.
The company manufactures and sells footwear for specific athletic use such as running, training,
basketball and soccer. It also manufactures and sells sports-inspired urban shoes and children's shoes.
In addition, the footwear product line comprises shoes for casual and leisure use. The company also sells
shoes designed for tennis, golf, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic
activities, hiking, outdoor activities and other athletic and recreational activities. The company offers these
products for men, women and children.
Nike offers sports apparel and accessories for athletic activities such as running, training, basketball,
soccer, golf, baseball, football and bicycling. Nike sells sports apparel and accessories for most of the
activities for which it offers footwear. Nike's apparel product line comprises sports-inspired lifestyle
apparel, athletic bags and other accessory items. The company offers apparel and accessories to
complement its athletic footwear products. It also offers footwear, apparel and accessories in collections
designed in a similar fashion or for a specific purpose. The company also markets apparel with licensed
college and professional team and league logos.
Nike sells performance equipment under the Nike brand name, including bags, socks, sport balls,
eyewear, timepieces, electronic devices, bats, gloves, protective equipment and other sports equipment
The company also licenses the production and selling of Nike branded swimwear, cycling apparel,
children's clothing, school supplies, eyewear, golf accessories and belts. In addition, Nike sells a wide
range of plastic products to other manufacturers through its subsidiary, Nike IHM.
The company offers athletic company owned branded footwear, apparel and equipment through 254 retail
stores in the US.

LEADING COMPANIES
Of these 121 are Nike factory stores which carry primarily overstock and closeout merchandise, 14 are
Nike stores which also house Nike Women stores, 12 are Nike Towns which are designed to shelf Nike
branded products and four Nike employee-only stores.
Nike offers its products in other countries through Nike-owned retail stores and through a mix of
independent distributors and licensees. The company sells its products to over 27,000 retail accounts
outside the US, excluding sales by independent distributors and licensees. Outside the US, the company
offers its products through 141 Nike factory stores, 46 Nike stores, three NikeTowns and 12 Nike
employee-only stores.
The company's other product line primarily includes the external sales by its subsidiaries: Cole Haan
Holdings, Converse, Hurley International, Nike Golf, and Umbro.
Nike's other businesses comprise subsidiaries through which Nike sells apparel, footwear and
accessories of brands other than Nike. Nike's wholly owned subsidiaries include Cole Haan Holdings,
Converse, Hurley International and Nike IHM.
The company sells a line of dress and casual footwear, apparel and accessories for men, women and
children under the Cole Haan and Bargano brand names through its subsidiary, Cole Haan Holdings.
Converse, a subsidiary of the company, designs and distributes athletic and casual footwear, apparel and
accessories under the Converse, Chuck Taylor, All Star, One Star, John Varvatos, and Jack Purcell brand
names. It also offers footwear under the Hurley brand. Hurley International, a subsidiary of the company
designs and distributes a line of action sports apparel for surfing, skateboarding, snowboarding and youth
lifestyle apparel and accessories under the Hurley brand. The company also provides athletic and casual
footwear, apparel and equipment, primarily for the sport of soccer under the Umbro brands.
Nike Golf, a subsidiary of the company, designs and markets golf equipment, apparel, balls, footwear,
bags and accessories across several geographies. Further, the company operates four Nike employee-
only stores, 102 Cole Haan stores that house factory and employee stores, 35 Converse stores that
house factory and employee stores and seven Hurley stores. Outside the US, the company operates 57
Cole Haan stores. In addition to the physical retail store channel, the company also offers its products
across various countries through the websites, nike.com, nikestore.com and nikewomen.com.
Key Metrics
The company recorded revenues of $19,176 million in the fiscal year ending May 2009, an increase of
2.9% compared to fiscal 2008. Its net income was $1,487 million in fiscal 2009, compared to a net income
of $1,883 million in the preceding year.

LEADING COMPANIES
Table 13: NIKE, Inc.: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 13,739.7 14,954.9 16,325.9 18,627.0 19,176.1
Net income (loss) 1,211.6 1,392.0 1,491.5 1,883.4 1,486.7
Total assets 8,793.6 9,869.6 10,688.3 12,442.7 9,103.0
Employees 26,000 28,000 30,200 30,200 32,500
Table 14: NIKE, Inc.: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 8.8% 9.3% 9.1% 10.1% 7.8%
Revenue growth 12.1% 8.8% 9.2% 14.1% 2.9%
Asset growth 11.4% 12.2% 8.3% 16.4% (26.8%)
Liabilities growth 1.3% 13.8% 2.2% 26.1% (10.2%)
Debt/asset ratio 35.8% 36.3% 34.3% 37.1% 45.6%
Return on assets 14.5% 14.9% 14.5% 16.3% 13.8%
Revenue per employee $528,450 $534,104 $540,593 $616,788 $590,034
Profit per employee $46,600 $49,714 $49,387 $62,364 $45,745

LEADING COMPANIES
Figure 8: NIKE, Inc.: revenues & profitability
Figure 9: NIKE, Inc.: assets & liabilities

LEADING COMPANIES
PUMA AG Rudolf Dassler Sport
Table 15: PUMA AG Rudolf Dassler Sport: key facts
Head office: PUMA Way 1, 91074 Herzogenaurach DEU

Telephone: 49 9132 81 0
Fax: 49 9132 81 2246
Website: www.puma.com
Ticker: PUM
Stock exchange: Frankfurt
PUMA AG Rudolf Dassler Sport (PUMA) is a sportswear company whose principal activities include the
design, manufacture and distribution of a variety of sporting goods. The company has operations
throughout Europe, Asia, America and Africa where it sells PUMA and Tretorn branded footwear, apparel
and accessories.
Puma operates through three divisions: footwear, apparel, and accessories.
The footwear division designs, manufactures and markets a range of shoes for various sports, including
football, motorsport, cricket, and golf.
The apparel segment produces clothes aimed at sporting activities as well as leisure and casual wear.
The company's clothing includes the Shudoh, Nuala, and Platinum brands. Puma has sponsorship deals
with teams and individual sportsmen and women to help promote their products.
The accessories division sells mainly bags, balls, and sporting accessories.
The company conducts its operations and manufactures its products through a number of operations.
Sourcing, research and development, strategic planning, supply service, warehousing and logistics, sales,
sales service and distribution are controlled from headquarters in Germany. The company also has
decentralized core competency centers, with operations in the US responsible for brand marketing and
Research & Development, while PUMA's Hong Kong headquarters is responsible for brand marketing
and product sourcing in the Asian market.
The company's brands include PUMA + Alexander McQueen, Mihara, Rudolf Dassler Schuhfabrik, PUMA
- The Black Label and Tretorn.

LEADING COMPANIES
Key Metrics
of 2.5% compared to fiscal 2008. Its net income was $178 million in fiscal 2009, compared to a net
income of $324 million in the preceding year.
Table 16: PUMA AG Rudolf Dassler Sport: key financials ($)
$ million 2005 2006 2007 2008 2009

Revenues 3,319.2 3,831.0 3,808.3 3,509.9 3,421.6
Net income (loss) 397.4 366.0 374.0 323.7 178.3
Total assets 1,836.9 2,384.4 2,590.5 2,640.2 2,800.6
Total liabilities 619.6 925.8 984.8 1,003.3 1,076.7
Employees 0 0 0 0 10,069
Table 17: PUMA AG Rudolf Dassler Sport: key financials (€)
€ million 2005 2006 2007 2008 2009

Revenues 2,387.0 2,755.1 2,738.8 2,524.2 2,460.7
Net income (loss) 285.8 263.2 269.0 232.8 128.2
Total assets 1,321.0 1,714.8 1,863.0 1,898.7 2,014.1
Total liabilities 445.6 665.8 708.2 721.5 774.3

LEADING COMPANIES
Table 18: PUMA AG Rudolf Dassler Sport: key financial ratios
Ratio 2005 2006 2007 2008 2009

Profit margin 12.0% 9.6% 9.8% 9.2% 5.2%
Revenue growth 18.4% 15.4% (0.6%) (7.8%) (2.5%)
Asset growth 40.2% 29.8% 8.6% 1.9% 6.1%
Liabilities growth 13.6% 49.4% 6.4% 1.9% 7.3%
Debt/asset ratio 33.7% 38.8% 38.0% 38.0% 38.4%
Return on assets 25.3% 17.3% 15.0% 12.4% 6.6%
Figure 10: PUMA AG Rudolf Dassler Sport: revenues & profitability

LEADING COMPANIES
Figure 11: PUMA AG Rudolf Dassler Sport: assets & liabilities

MARKET FORECASTS
MARKET FORECASTS
Market value forecast
In 2014, the European sports equipment market is forecast to have a value of $23.4 billion, an increase of
11.2% since 2009.
The compound annual growth rate of the market in the period 2009–14 is predicted to be 2.2%.
Table 19: Europe sports equipment market value forecast: $ billion, 2009–14
Year $ billion € billion % Growth

2009 21.1 15.1 1.8%
2010 21.5 15.5 2.1%
2011 21.9 15.8 2.1%
2012 22.5 16.1 2.3%
2013 22.9 16.5 2.1%
2014 23.4 16.8 2.2%
CAGR: 2009–14 2.2%
Figure 12: Europe sports equipment market value forecast: $ billion, 2009–14

APPENDIX
APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,
analyzed, cross-checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys
and supported by analysis from industry experts using highly complex modeling & forecasting tools,
Datamonitor’s in-house databases provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst
commentary, company profiles and macroeconomic & demographic information, which enable our
researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to country. The
parameters of each definition are carefully reviewed at the start of the research process to ensure they
match the requirements of both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest
industry events and trends
Datamonitor aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative
and qualitative data to be combined with related macroeconomic and demographic drivers to create
market models and forecasts, which can then be refined according to specific competitive, regulatory
and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and
up-to-date

APPENDIX
Industry associations
World Federation of the Sporting Goods Industry
Maison du Sport International (Building C, 3rd floor), Avenue de Rhodanie 54, 1007 Lausanne,
Switzerland
Tel.: 41 21 612 61 61
Fax: 41 21 612 61 69
http://www.wfsgi.org
Federation of the European Sporting Goods Association

Rue Belliard 20, 1040 Brussels, Belgium
Tel.: 32 2 762 86 48
Fax: 32 2 771 87 46
http://www.fesi-sport.org
Related Datamonitor research
Industry Profile
Global Sports Equipment
Sports Equipment in Germany
Sports Equipment in the United Kingdom

APPENDIX
Disclaimer
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Please note that the findings, conclusions and recommendations that Datamonitor delivers will be
based on information gathered in good faith from both primary and secondary sources, whose
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INDUSTRY PROFILE

Reference Code: 0201-0218

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 1

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 2

Amer Sports Corporation 19

PUMA AG Rudolf Dassler Sport 27

Market value forecast 31

Related Datamonitor research 33

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 3

Table 6: adidas AG: key financials (€) 17

Table 9: Amer Sports Corporation: key financials ($) 20

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 4

Figure 6: Amer Sports Corporation: revenues & profitability 21

Figure 9: NIKE, Inc.: assets & liabilities 26

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 5

Europe - Sports Equipment 0201 - 0218 - 2009

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Europe - Sports Equipment 0201 - 0218 - 2009

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Europe - Sports Equipment 0201 - 0218 - 2009

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Table 1: Europe sports equipment market value: $ billion, 2005–09(e)

Year $ billion € billion % Growth

CAGR: 2005–09 2.2%

Source: Datamonitor DATAMONITOR

Figure 1: Europe sports equipment market value: $ billion, 2005–09(e)

Source: Datamonitor DATAMONITOR

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 9

Source: Datamonitor DATAMONITOR

Source: Datamonitor DATAMONITOR

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 10

Source: Datamonitor DATAMONITOR

Source: Datamonitor DATAMONITOR

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 11

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 12

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 13

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 14

Table 4: adidas AG: key facts

Head office: Adi Dassler Platz 1 2, 91074 Herzogenaurach DEU

Source: company website DATAMONITOR

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 15

Table 5: adidas AG: key financials ($)

$ million 2005 2006 2007 2008 2009

Source: company filings DATAMONITOR

Europe - Sports Equipment 0201 - 0218 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 16

Table 6: adidas AG: key financials (€)

€ million 2005 2006 2007 2008 2009

Source: company filings DATAMONITOR

Table 7: adidas AG: key financial ratios