Annual Report 2024

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Emerging Markets

Sales in Emerging Markets improved 19% on a currency-neutral basis. In euro terms, sales were up 16% to € 3,310 million from € 2,850 million in 2023. On a currency-neutral basis, this development was driven by double-digit growth in both Lifestyle and Performance. In Lifestyle, Originals increased at a strong double-digit rate and Sportswear grew high single digits. Growth in Performance was broad-based across all categories.

Net sales in Emerging Markets

+19%

C.N.
€ 3,310 million

Emerging Markets at a glance € in millions

 

 

2024

 

2023

 

Change

 

Change
(currency-neutral)

Net sales

 

3,310

 

2,850

 

16%

 

19%

Gross margin

 

51.3%

 

50.0%

 

1.3pp

 

–

Segmental operating profit

 

738

 

626

 

18%

 

–

Segmental operating margin

 

22.3%

 

22.0%

 

0.3pp

 

–

Gross margin in Emerging Markets increased 1.3 percentage points to 51.3% (2023: 50.0%). Benefits from price increases, lower sourcing costs, and a better business mix more than offset significant negative currency developments. Operating expenses were up 20% to € 959 million versus € 803 million in 2023, driven by increases in both marketing expenditure and operating overhead costs. Operating expenses as a percentage of sales were up 0.8 percentage points to 29.0% (2023: 28.2%). Operating profit in Emerging Markets increased 18% to € 738 million from € 626 million in 2023, while the operating margin was up 0.3 percentage points to 22.3% versus 22.0% in 2023.

Lifestyle category
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 expenses
Expenses that 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.
Performance category
Under the ‘Performance‘ category, we subsume all footwear, apparel, and ‘accessories and gear‘ products that are of a more technical nature, built for sport and worn for sport. These are, among others, products from our most important sport categories: Football, Training, Running, and Outdoor.

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