Emerging Markets

Revenues in Emerging Markets were down 18% on a currency-neutral basis. In euro terms, sales in Emerging Markets declined 23% to € 998 million from € 1.302 billion in 2019. adidas brand revenues decreased 16% on a currency-neutral basis, with declines in both and . Reebok brand revenues in Emerging Markets were down 28% on a currency-neutral basis, due to declines in both Sport and Classics.

Net sales in Emerging Markets



€ 998 m

Emerging Markets at a glance € in millions









Change (currency-neutral)

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adidas brand









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Segmental operating profit








Segmental operating margin








Gross margin in Emerging Markets decreased 5.9 percentage points to 46.4% (2019: 52.3%), as a more favorable channel mix was more than offset by a less favorable pricing mix due to increased promotional activity, negative currency developments and purchase order cancellation costs. Operating expenses were down 11% to € 279 million versus € 314 million in 2019, reflecting a decline in both operating overhead costs and . As a percentage of sales, operating expenses increased 3.8 percentage points to 27.9% from 24.2% in 2019. As a result of the lower gross margin and higher operating expenses as a percentage of sales, operating margin was down 9.7 percentage points to 18.5% (2019: 28.2%). Operating profit in Emerging Markets declined 50% to € 185 million versus € 367 million 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.

How did the 2020 financial year go?

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