Emerging Markets
Revenues in Emerging Markets were up 13% on a currency-neutral basis. In euro terms, sales in Emerging Markets grew 14% to € 1.302 billion from € 1.144 billion in 2018. adidas brand revenues increased 12% on a currency-neutral basis, driven by double-digit growth in Inspired and high-single-digit growth in Performance. Reebok brand revenues in Emerging Markets grew 14% on a currency-neutral basis, driven by a high-single-digit increase in Sport and double-digit growth in Classics.
Net sales in Emerging Markets
+ 13%
C.N.
€ 1.302 bn
|
|
2019 |
|
2018 |
|
Change |
|
Change |
|---|---|---|---|---|---|---|---|---|
Net sales |
|
1,302 |
|
1,144 |
|
14% |
|
13% |
adidas brand |
|
1,146 |
|
1,010 |
|
13% |
|
12% |
Reebok brand |
|
156 |
|
134 |
|
16% |
|
14% |
Gross margin |
|
52.3% |
|
52.8% |
|
(0.5pp) |
|
– |
Segmental operating profit |
|
367 |
|
318 |
|
15% |
|
– |
Segmental operating margin |
|
28.2% |
|
27.8% |
|
0.4pp |
|
– |
Gross margin in Emerging Markets decreased 0.5 percentage points to 52.3% (2018: 52.8%), as negative currency effects and an unfavorable channel mix more than offset lower sourcing costs and a favorable product and pricing mix. Operating expenses were up 10% to € 314 million versus € 286 million in 2018, reflecting an increase in expenditure as well as higher operating overhead costs. As a percentage of sales, operating expenses decreased 0.8 percentage points to 24.2% from 25.0% in 2018. As the lower gross margin was more than offset by lower operating expenses as a percentage of sales, operating margin was up 0.4 percentage points to 28.2% (2018: 27.8%). Operating profit in Emerging Markets increased 15% to € 367 million versus € 318 million in 2018.
Sport Inspired
‘Sport Inspired’ stands for fashion inspired by sport – also known as ‘sports lifestyle’. It draws inspiration from adidas’ rich archives and legacy. Sport Inspired stands for Originals, Y-3, Statement and Yeezy.
Sport Performance
‘Sport Performance’ stands for the categories training, running, football, basketball and heartbeat sports such as outdoor, swim, tennis and US sports.
Marketing Expenditure
Expenditure that relates to point-of-sale and marketing investments. While point-of-sale investments include expenses for advertising and promotion initiatives at the point of sale as well as store fittings and furniture, marketing investments relate to sponsorship contracts with teams and individual athletes as well as to advertising, events and other communication activities. Marketing overhead expenses are not included in marketing expenditure.