Annual Report 2025

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Edson Álvarez in a green Mexico adidas jersey in action. (Photo)

Japan/South Korea

Sales for the adidas brand in Japan/South Korea increased 14% on a currency-neutral basis. The increase was driven by double-digit growth in Lifestyle, reflecting double-digit increases in Originals alongside growth in Sportswear. Performance grew at a high-single-digit rate, led by double-digit growth in Running and Football, alongside growth in several other categories. Including Yeezy sales in the prior year, currency-neutral revenues grew by 11%. In euro terms, sales improved 5% to € 1,406 million as currency translation effects weighed on reported revenue growth (2024: € 1,339 million).

Net sales in Japan/South Korea

+14%

Brand adidas c.n.
€ 1,406 million

Japan/South Korea at a glance € in millions

 

 

2025

 

2024

 

Change

 

Change
(currency-neutral)

 

Brand adidas Change (currency-neutral)1

Net sales

 

1,406

 

1,339

 

5%

 

11%

 

14%

Gross profit

 

740

 

711

 

4%

 

—

 

—

Gross margin

 

52.6%

 

53.1%

 

(0.5pp)

 

—

 

—

Operating expenses

 

466

 

428

 

9%

 

—

 

—

Operating expenses
in % of net sales

 

33.2%

 

32.0%

 

1.2pp

 

—

 

—

Operating profit

 

305

 

295

 

3%

 

—

 

—

Operating margin

 

21.7%

 

22.0%

 

(0.3pp)

 

—

 

—

1

Excluding Yeezy sales in the prior-year period.

Gross margin in Japan/South Korea decreased by 0.5 percentage points to 52.6% from 53.1% in 2024, as the positive effects from a better business mix and lower sourcing costs were more than offset by unfavorable currency movements. Operating expenses were up 9% to € 466 million (2024: € 428 million), driven by increases in both marketing expenditure and operating overhead costs. Operating expenses as a percentage of sales increased 1.2 percentage points to 33.2% (2024: 32.0%). Operating profit in Japan/South Korea increased 3% to € 305 million versus € 295 million in 2024. The operating margin decreased 0.3 percentage points to 21.7% from 22.0% in 2024.

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More about the Outlook
Lifestyle category
Under the ‘Lifestyle’ category, we subsume all footwear and apparel products as well as accessories 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 and apparel products as well as accessories 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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