North America

Revenues in North America grew 8% on a currency-neutral basis and 13% in euro terms to € 5.313 billion from € 4.689 billion in 2018. adidas brand sales increased 7% on a currency-neutral basis, with mid-single-digit sales growth in Sport Inspired and low-single-digit sales growth in Sport Performance. Reebok brand revenues in North America grew 12% on a currency-neutral basis, driven by increases in both Sport and Classics.

Gross margin in North America decreased 1.2 percentage points to 40.0% (2018: 41.2%). Higher air freight costs to mitigate the supply chain shortages and an unfavorable pricing mix were only partly offset by lower sourcing costs as well as a better product and channel mix. Operating expenses were up 14% to € 1.493 billion versus € 1.305 billion in 2018, mainly reflecting an increase in operating overhead costs. Operating expenses as a percentage of sales increased 0.3 percentage points to 28.1% (2018: 27.8%). As a result of the lower gross margin and higher operating expenses as a percentage of sales, operating margin declined 1.4 percentage points to 13.5% from 14.9% in 2018. Operating profit in North America increased 2% to € 715 million from € 698 million in 2018.