Herzogenaurach, Germany — Sports equipment and shoemaker, Adidas generated Sales of EUR 23.6 bn in 2019 up 7.9% on the previous financial year.
Adidas grew all around the world in 2019
Kaspar Rorsted, optimistic. Credit: Adidas
Gross Profit across the business rose by 8.2% and reached EUR 12.3 bn in 2019. This compares with EUR 11.4 bn 2018. This is a rise of EUR 930m.
'We recorded revenue increases across all regions and our direct-to-consumer business grew double-digits driven by e-commerce, one of our strategic growth areas,' said Adidas CEO Kasper Rorsted.
Chinese sales were up 15%, Asia-Pacific by 10% and North America 10%. The market in Europe was up 3% in the year.
Lower sourcing costs, positive currency developments as well as a better product and channel mix more than offset higher air freight costs to mitigate the supply chain shortages and a less favourable pricing mix at the gross profit level. Here margins were almost unchanged from 2018.
Looking ahead to 2020, the company expects sales to grow by between 6% and 8%. But that the gross profit margin will be hit by currency movements, and higher input prices. This outlook does not reflect the effects that coronavirus may have over the course of the year.
