Photo from Adidas Originals collaboration with street artist Fafi.
A mixture of financial results among many youth culture brands released early November 2010 indicates several different trends and expectations in upcoming 4th quarter guidance.
First Adidas Group announced the greatest gains within the brands we’re profiling in this story with an increase revenue of 10% during their 3rd quarter. Sales for other businesses increased 4%. Broken down by geographics Western Europe increased 8% due to a strong growth in the football (soccer) category and European emerging markets rose 16%. North American markets rose by 14% driven by sales increase for Adidas by 15% and a 25% increase for Reebok.
As we’ve noted in our Fall Youth Culture Study 2010 Adidas has increased greatly as a “favorite” brand among 13-25-year-olds across North America (see our Study for more information on changes in ranking for Adidas Reebok and other associated fashion and footwear brands).
In greater China Adidas grew 9%. Overall the brand is on a high-note globally.
For other retailers particularly in the teen fashion categories Abercrombie & Fitch climbed 2% in October which was not all that significant however revenues at $885.8 million were higher than Wall Street analysts predictions. Buckle also increased at 2.6% which beat expectations.
American Eagle on the other hand dropped 2% but they did state that revenue results for their 3rd quarter were better than expected.
Aeropostale also dropped 2% in its October revenue.