Latin America

Revenues in Latin America increased 7% on a currency-neutral basis. In euro terms, sales in Latin America grew 2% to € 1.660 billion from € 1.634 billion in 2018. adidas brand sales were up 8% on a currency-neutral basis. Double-digit growth in Sport Inspired was partly offset by a low-single-digit sales decline in Sport Performance. Reebok brand sales in Latin America grew 3% on a currency-neutral basis, as a high-single-digit decline in Sport was more than offset by double-digit growth in Classics.

Gross margin in Latin America decreased 0.4 percentage points to 44.5% (2018: 44.9%), as negative currency effects and an unfavorable product and channel mix were only partly offset by lower sourcing costs and a favorable pricing mix. Operating expenses were down 2% to € 444 million from € 454 million in 2018, reflecting a decrease in operating overhead costs. Operating expenses as a percentage of sales declined 1.1 percentage points to 26.7% (2018: 27.8%). As the lower gross margin was more than offset by lower operating expenses as a percentage of sales, operating margin improved 0.7 percentage points to 17.8% from 17.1% in 2018. Operating profit in Latin America increased 6% to € 295 million versus € 279 million in 2018.