adidas has divided its operating activities into the following operating segments: Europe, North America adidas, North America Reebok, Asia-Pacific, Russia/CIS, Latin America, Emerging Markets, adidas Golf, Runtastic and Other centrally managed businesses. While the operating segments Europe, Asia-Pacific, Russia/CIS, Latin America, and Emerging Markets are reported separately, North America adidas and North America Reebok are combined to the reportable segment North America. Each reportable segment comprises all wholesale, retail and e-commerce business activities relating to the distribution and sale of products of the adidas and Reebok brands to retail customers and end consumers. The remaining operating segments are aggregated under Other Businesses due to their relatively lesser significance.

All markets significantly impacted by global coronavirus pandemic

The global spread of the coronavirus during 2020 led to a significant number of temporary store closures, with a corresponding negative impact on adidas’ top-line development in all market segments. Exceptional e-commerce growth could only partially offset the material revenue decline in the physical channels. In most segments, a more favorable channel mix due to the exceptional e-commerce growth had a positive effect on the gross margin development. However, this was more than offset by a less favorable pricing mix due to increased promotional activity and negative currency fluctuations in most segments. At the same time, operating expenses declined in all segments as a result of the company’s decision to proactively reduce costs in light of the coronavirus pandemic.


In 2020, sales in Europe declined 12% on a currency-neutral basis as well as in euro terms to € 5.320 billion from € 6.071 billion in 2019. adidas brand revenues were down 12% on a currency-neutral basis, due to declines in both and . Reebok brand revenues in Europe decreased 16% on a currency-neutral basis, due to declines in both Sport and Classics.

Net sales in Europe



€ 5.320 bn

Europe at a glance € in millions









Change (currency-neutral)

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Reebok brand









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Segmental operating profit








Segmental operating margin








Gross margin in Europe decreased 2.2 percentage points to 49.3% from 51.5% in 2019, 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 2% to € 1.681 billion versus € 1.722 billion in 2019, reflecting a decline in . Operating expenses as a percentage of sales were up 3.2 percentage points to 31.6% (2019: 28.4%). As a result of the lower gross margin and higher operating expenses as a percentage of sales, operating margin was down 5.4 percentage points to 17.8% (2019: 23.2%). Operating profit in Europe declined 33% to € 947 million versus € 1.408 billion in the prior year.

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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