Annual Report 2025

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

Latin America

Sales for the adidas brand in Latin America increased 22% on a currency-neutral basis, reflecting broad-based double-digit growth in both Performance and Lifestyle. In Performance, growth was led by double-digit increases in Running, Football, and Training. In Lifestyle, double-digit growth was driven by both Originals and Sportswear. Including Yeezy sales in the prior year, currency-neutral revenues grew by 21%. In euro terms, sales in Latin America improved 6% to € 2,926 million as currency translation effects weighed on reported revenue growth (2024: € 2,772 million).

Net sales in Latin America

+22%

Brand adidas c.n.
€ 2,926 million

Latin America at a glance € in millions

 

 

2025

 

2024

 

Change

 

Change
(currency-neutral)

 

Brand adidas Change (currency-neutral)1

Net sales

 

2,926

 

2,772

 

6%

 

21%

 

22%

Gross profit

 

1,391

 

1,329

 

5%

 

 

Gross margin

 

47.5%

 

47.9%

 

(0.4pp)

 

 

Operating expenses

 

786

 

717

 

10%

 

 

Operating expenses
in % of net sales

 

26.9%

 

25.9%

 

1.0pp

 

 

Operating profit

 

609

 

614

 

(1%)

 

 

Operating margin

 

20.8%

 

22.2%

 

(1.4pp)

 

 

1

Excluding Yeezy sales in the prior-year period.

Gross margin in Latin America decreased 0.4 percentage points to 47.5% (2024: 47.9%) as the positive effects from lower sourcing costs and better business mix were more than offset by unfavorable currency movements. Operating expenses were up 10% to € 786 million from € 717 million in 2024. This development reflects increases in both marketing expenditure and operating overhead costs. Operating expenses as a percentage of sales increased 1.0 percentage points to 26.9% (2024: 25.9%). Operating profit in Latin America decreased 1% to € 609 million versus € 614 million in 2024. The operating margin decreased 1.4 percentage points to 20.8% from 22.2% in 2024.

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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.