EMEA
At the beginning of 2021, we launched our new strategy ‘Own the Game’ for the period until 2025. As part of this strategy, we are focusing our growth efforts on the three strategic markets Greater China, EMEA, and North America. To be able to execute this strategy successfully, adidas has changed its organizational structure. Since January 1, 2021, adidas manages Greater China as a separate market. The remaining Asia-Pacific (APAC) market now comprises Japan, South Korea, Southeast Asia, and the Pacific region. The change reflects the increasing importance of Greater China as a growth market for the company. In addition, adidas created the EMEA (Europe, Middle East, and Africa) market. To better leverage economies of scale, the company has integrated the former markets Europe, Russia/CIS, and Emerging Markets into the newly formed EMEA market. The markets North America and Latin America remain unchanged.
EMEA
In 2021, sales in EMEA increased 24% on a currency-neutral basis and 23% in euro terms to € 7.760 billion from € 6.308 billion in 2020. The currency-neutral increase was driven by exceptional growth in Performance and strong double-digit growth in . The former reflects excellent growth in Training and Running as well as exceptional increases in Football and Outdoor.
Net sales in EMEA
+24%
C.N.
€ 7.760 bn
|
|
2021 |
|
2020 |
|
Change |
|
Change (currency-neutral) |
||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net sales |
|
7,760 |
|
6,308 |
|
23% |
|
24% |
||||
Gross margin |
|
50.8% |
|
50.0% |
|
0.8pp |
|
– |
||||
Segmental operating profit |
|
1,658 |
|
1,003 |
|
65% |
|
– |
||||
Segmental operating margin |
|
21.4% |
|
15.9% |
|
5.5pp |
|
– |
||||
|
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Gross margin in EMEA increased 0.8 percentage points to 50.8% from 50.0% in 2020 reflecting a more favorable pricing mix due to less promotional activity. Negative currency developments and higher sourcing costs had a negative impact on the gross margin development. Operating expenses were up 6% to € 2.294 billion versus € 2.159 billion in 2020, mainly driven by a double-digit increase in expenditure. Operating expenses as a percentage of sales were down 4.7 percentage points to 29.6% (2020: 34.2%). As a result of the higher gross margin and lower operating expenses as a percentage of sales, operating margin was up 5.5 percentage points to 21.4% (2020: 15.9%). Operating profit in EMEA improved 65% to € 1.658 billion versus € 1.003 billion in the prior year.
Lifestyle
Under the ‘Lifestyle’ category, we subsume all footwear, apparel, and ‘accessories and gear’ products that are born from sport and worn for style. ‘adidas Originals,’ which is inspired by sport and worn on the street, is at the heart of the ‘Lifestyle’ category.
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.