North America
Revenues in North America declined 9% on a currency-neutral basis and 10% in euro terms to € 4.762 billion from € 5.313 billion in 2019. adidas brand sales decreased 8% on a currency-neutral basis, with declines in both Inspired and Performance. Reebok brand revenues in North America were down 17% on a currency-neutral basis, due to declines in both Sport and Classics.
Net sales in North America
–9%
C.N.
€ 4.762 bn
|
|
2020 |
|
2019 |
|
Change |
|
Change (currency-neutral) |
|---|---|---|---|---|---|---|---|---|
Net sales |
|
4,762 |
|
5,313 |
|
(10%) |
|
(9%) |
adidas brand |
|
4,365 |
|
4,828 |
|
(10%) |
|
(8%) |
Reebok brand |
|
397 |
|
485 |
|
(18%) |
|
(17%) |
Gross margin |
|
42.5% |
|
40.0% |
|
2.5pp |
|
– |
Segmental operating profit |
|
606 |
|
715 |
|
(15%) |
|
– |
Segmental operating margin |
|
12.7% |
|
13.5% |
|
(0.7pp) |
|
– |
Gross margin in North America increased 2.5 percentage points to 42.5% (2019: 40.0%). A more favorable channel and category mix as well as lower sourcing costs more than offset purchase order cancellation costs. Operating expenses were down 2% to € 1.461 billion versus € 1.493 billion in 2019, reflecting a decrease in expenditure. Operating expenses as a percentage of sales increased 2.6 percentage points to 30.7% (2019: 28.1%). As the higher gross margin was more than offset by higher operating expenses as a percentage of sales, operating margin declined 0.7 percentage points to 12.7% from 13.5% in 2019. Operating profit in North America decreased 15% to € 606 million from € 715 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.