Greater China
Sales in Greater China increased 3% on a currency-neutral basis. In euro terms, sales in Greater China improved 6% to € 4.597 billion from € 4.342 billion in 2020. The currency-neutral increase was driven by mid-single-digit growth in . In addition, low-single-digit improvements in Training and Outdoor also contributed to the increase.
Net sales in Greater China
+3%
C.N.
€ 4.597 bn
|
|
2021 |
|
2020 |
|
Change |
|
Change (currency-neutral) |
||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net sales |
|
4,597 |
|
4,342 |
|
6% |
|
3% |
||||
Gross margin |
|
51.8% |
|
52.3% |
|
(0.5pp) |
|
– |
||||
Segmental operating profit |
|
1,194 |
|
1,137 |
|
5% |
|
– |
||||
Segmental operating margin |
|
26.0% |
|
26.2% |
|
(0.2pp) |
|
– |
||||
|
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Gross margin in Greater China decreased 0.5 percentage points to 51.8% from 52.3% in 2020, mainly due to negative currency developments and higher sourcing costs, which could only be partly offset by a more favorable category mix. Operating expenses were up 5% to € 1.188 billion (2020: € 1.134 billion), reflecting an increase in both expenditure and overhead costs. Operating expenses as a percentage of sales decreased 0.3 percentage points to 25.8% versus 26.1% in the prior year. As the gross margin decline was not fully offset by lower operating expenses as a percentage of sales, operating margin decreased 0.2 percentage points to 26.0% from 26.2% in 2020. Operating profit in Greater China increased 5% to € 1.194 billion versus € 1.137 billion in 2020.
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.
Operating overhead Costs
Expenses which are not directly attributable to the products or services sold, such as distribution and selling as well as general and administration costs, but not including marketing and point-of-sale expenses.