North America
Revenues in North America decreased 2% on a currency-neutral basis and also 2% in euro terms to € 5,128 million (2023: € 5,219 million). This development was mainly driven by the company’s continued conservative sell-in approach to the wholesale channel in response to still elevated inventory levels in this market, particularly in the first half of the year, as well as lower Yeezy sales. With those anticipated headwinds moderating sequentially, revenue growth in North America accelerated to a double-digit rate in the fourth quarter.
Net sales in North America
(2%)
C.N.
€ 5,128 million
|
|
2024 |
|
2023 |
|
Change |
|
Change |
|---|---|---|---|---|---|---|---|---|
Net sales |
|
5,128 |
|
5,219 |
|
(2%) |
|
(2%) |
Gross margin |
|
43.1% |
|
40.1% |
|
3.0pp |
|
– |
Segmental operating profit |
|
480 |
|
273 |
|
76% |
|
– |
Segmental operating margin |
|
9.4% |
|
5.2% |
|
4.1pp |
|
– |
Gross margin in North America increased 3.0 percentage points to 43.1% (2023: 40.1%). Benefits from lower sourcing costs, healthier inventory levels, and a better business mix more than offset impacts from higher discounting. Operating expenses were down 4% to € 1,788 million versus € 1,872 million in 2023, mainly driven by a decrease in operating overhead costs. Operating expenses as a percentage of sales decreased 1.0 percentage point to 34.9% (2023: 35.9%). Operating profit in North America increased 76% to € 480 million from € 273 million in 2023, while the operating margin increased 4.1 percentage points to 9.4% from 5.2% in 2023.