Russia/CIS
Sales in Russia/CIS were flat on a currency-neutral basis. In euro terms, sales in Russia/CIS declined 11% to € 584 million from € 658 million in 2019. adidas brand revenues were up 3% on a currency-neutral basis. While sales in Inspired grew at a mid-single-digit rate, revenues in Performance increased at a low-single-digit rate. Reebok brand revenues in Russia/CIS decreased 9% on a currency-neutral basis, due to declines in both Sport and Classics.
Net sales in Russia/CIS
+0%
C.N.
€ 584 m
|
|
2020 |
|
2019 |
|
Change |
|
Change (currency-neutral) |
|---|---|---|---|---|---|---|---|---|
Net sales |
|
584 |
|
658 |
|
(11%) |
|
0% |
adidas brand |
|
448 |
|
490 |
|
(8%) |
|
3% |
Reebok brand |
|
135 |
|
168 |
|
(20%) |
|
(9%) |
Gross margin |
|
61.1% |
|
61.7% |
|
(0.6pp) |
|
– |
Segmental operating profit |
|
162 |
|
167 |
|
(3%) |
|
– |
Segmental operating margin |
|
27.8% |
|
25.4% |
|
2.4pp |
|
– |
Gross margin in Russia/CIS decreased 0.6 percentage points to 61.1% from 61.7% in 2019, due to an unfavorable channel and pricing mix as well as negative currency developments. Operating expenses were down 19% to € 194 million (2019: € 239 million), reflecting a decline in both operating overhead costs and expenditure. Operating expenses as a percentage of sales decreased 3.1 percentage points to 33.2% versus 36.3% 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 2.4 percentage points to 27.8% from 25.4% in 2019. Operating profit in Russia/CIS declined 3% to € 162 million versus € 167 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.