Russia/CIS
Sales in Russia/CIS increased 8% on a currency-neutral basis. In euro terms, sales in Russia/CIS grew 11% to € 658 million from € 595 million in 2018. adidas brand revenues were up 7% on a currency-neutral basis. While sales in Inspired grew at a double-digit rate, revenues in Performance increased at a mid-single-digit rate. Reebok brand revenues in Russia/CIS increased 11% on a currency-neutral basis, driven by mid-single-digit growth in Sport and double-digit growth in Classics.
Net sales in Russia/CIS
+ 8%
C.N.
€ 658 m
|
|
2019 |
|
2018 |
|
Change |
|
Change |
|---|---|---|---|---|---|---|---|---|
Net sales |
|
658 |
|
595 |
|
11% |
|
8% |
adidas brand |
|
490 |
|
446 |
|
10% |
|
7% |
Reebok brand |
|
168 |
|
149 |
|
13% |
|
11% |
Gross margin |
|
61.7% |
|
65.8% |
|
(4.2pp) |
|
– |
Segmental operating profit |
|
167 |
|
146 |
|
14% |
|
– |
Segmental operating margin |
|
25.4% |
|
24.6% |
|
0.8pp |
|
– |
Gross margin in Russia/CIS decreased 4.2 percentage points to 61.7% from 65.8% in 2018, as an unfavorable pricing and channel mix more than offset lower sourcing costs and positive currency effects. Operating expenses were down 3% to € 239 million (2018: € 245 million), reflecting a decline in both operating overhead costs and expenditure. Operating expenses as a percentage of sales decreased 4.9 percentage points to 36.3% versus 41.2% in the prior year. As the lower gross margin was more than offset by lower operating expenses as a percentage of sales, operating margin improved 0.8 percentage points to 25.4% from 24.6% in 2018. Operating profit in Russia/CIS increased 14% to € 167 million versus € 146 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.