North America
Revenues in North America increased 17% on a currency-neutral basis and 13% in euro terms to € 5.105 billion from € 4.519 billion in 2020. The currency-neutral improvement was driven by strong double-digit growth in Performance, reflecting double-digit increases in Training and Running as well as exceptional growth in Football and Outdoor. In addition, grew at a double-digit rate, as well.
Net sales in North America
+17%
C.N.
€ 5.105 bn
|
|
2021 |
|
2020 |
|
Change |
|
Change (currency-neutral) |
||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net sales |
|
5,105 |
|
4,519 |
|
13% |
|
17% |
||||
Gross margin |
|
46.2% |
|
42.8% |
|
3.4pp |
|
– |
||||
Segmental operating profit |
|
960 |
|
506 |
|
90% |
|
– |
||||
Segmental operating margin |
|
18.8% |
|
11.2% |
|
7.6pp |
|
– |
||||
|
||||||||||||
Gross margin in North America increased 3.4 percentage points to 46.2% (2020: 42.8%). While a more favorable pricing mix due to less promotional activity supported the improvement, higher sourcing costs as well as a less favorable channel mix had an adverse impact on gross margin. Operating expenses were down 2% to € 1.433 billion versus € 1.460 billion in 2020, reflecting a decrease in overhead costs as expenditure increased. Operating expenses as a percentage of sales decreased 4.2 percentage points to 28.1% (2020: 32.3%). As a result of the higher gross margin and lower operating expenses as a percentage of sales, operating margin increased 7.6 percentage points to 18.8% from 11.2% in 2020. Operating profit in North America increased 90% to € 960 million from € 506 million 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.
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.
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.