EMEA
adidas has divided its operating activities into the following segments: EMEA, North America, Greater China, Asia-Pacific, and Latin America.
EMEA
In 2023, sales in EMEA were flat on a currency-neutral basis and decreased 4% in euro terms to € 8,235 million from € 8,550 million in 2022. The currency-neutral development was driven by a low-single-digit increase in Performance, driven in particular by high-single-digit growth in Football. At the same time, Lifestyle revenues decreased at a low-single-digit rate, reflecting the significantly lower Yeezy sales.
Net sales in EMEA
0%
C.N.
€ 8,235 million
|
|
2023 |
|
2022 |
|
Change |
|
Change (currency-neutral) |
|---|---|---|---|---|---|---|---|---|
Net sales |
|
8,235 |
|
8,550 |
|
(4%) |
|
0% |
Gross margin |
|
46.4% |
|
50.5% |
|
(4.1pp) |
|
– |
Segmental operating profit |
|
1,280 |
|
1,679 |
|
(24%) |
|
– |
Segmental operating margin |
|
15.5% |
|
19.6% |
|
(4.1pp) |
|
– |
Gross margin in EMEA decreased 4.1 percentage points to 46.4% from 50.5% in 2022. Unfavorable currency developments, significantly higher supply chain costs and the negative impact from higher discounting weighed on the margin development. This was only partly offset by better pricing and a slightly more favorable business mix. Operating expenses were down 5% to € 2,562 million versus € 2,683 million in 2022, driven by a mid-single-digit decrease in operating overheads. As a percentage of sales, operating expenses were down 0.3 percentage points to 31.1% (2022: 31.4%). Operating profit in EMEA decreased 24% to € 1,280 million versus € 1,679 million in the prior year. As a result of the lower gross margin, operating margin was down 4.1 percentage points to 15.5% (2022: 19.6%).
How did the 2023 financial year go?
More on Business Performance