Asia-Pacific
Sales in Asia-Pacific declined 17% on a currency-neutral basis. In euro terms, sales in Asia-Pacific were down 18% to € 6.546 billion from € 8.032 billion in 2019. adidas brand revenues decreased 17% on a currency-neutral basis. This development was due to declines in both Inspired and Performance. Reebok brand sales in Asia-Pacific decreased 15% on a currency-neutral basis, due to declines in both Sport and Classics.
Net sales in Asia-Pacific
–17%
C.N.
€ 6.546 bn
|
|
2020 |
|
2019 |
|
Change |
|
Change (currency-neutral) |
|---|---|---|---|---|---|---|---|---|
Net sales |
|
6,546 |
|
8,032 |
|
(18%) |
|
(17%) |
adidas brand |
|
6,298 |
|
7,736 |
|
(19%) |
|
(17%) |
Reebok brand |
|
249 |
|
296 |
|
(16%) |
|
(15%) |
Gross margin |
|
51.8% |
|
57.0% |
|
(5.2pp) |
|
– |
Segmental operating profit |
|
1,617 |
|
2,703 |
|
(40%) |
|
– |
Segmental operating margin |
|
24.7% |
|
33.7% |
|
(9.0pp) |
|
– |
Gross margin in Asia-Pacific decreased 5.2 percentage points to 51.8% (2019: 57.0%), as a more favorable channel and category mix as well as lower sourcing costs were more than offset by a less favorable pricing mix due to increased promotional activity and purchase order cancellation costs. Operating expenses were down 5% to € 1.789 billion versus € 1.891 billion in 2019, mainly driven by lower expenditure. Operating expenses as a percentage of sales were up 3.8 percentage points to 27.3% (2019: 23.5%). As a result of the lower gross margin and higher operating expenses as a percentage of sales, operating margin was down 9.0 percentage points to 24.7% versus 33.7% in 2019. Operating profit in Asia-Pacific declined 40% to € 1.617 billion from € 2.703 billion in 2019.
Sport inspired
‘Sport Instands 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.