adidas AG (XETR: ADS.DE) announced its 2021 full-year financial results on March 9th, 2021. According to the announcement, net sales, operating profit and net income were up 15%, 166% and 390%, respectively (TTM, YoY). In this regard, adidas recorded gains from discontinued operations of EUR 666 million related to the expected divestiture of the Reebok brand. However, net income from continuing operations was also up 223% (TTM, YoY).
In addition, gross margin for the full-year of 2021 was 50.7%. Furthermore, free cash flow (FCF) was EUR 2,777 million, up 103% year-over-year. FCF margin is calculated to be 13%.
Reviewing the net sales by region, Latin America had the highest sales growth, recording up 47%. It was followed by EMEA of up 24% (TTM, YoY). In this regard, EMEA’s sales account for the largest share of adidas sales at 37%. As for Latin America, its sales account for 7%.
As for each segment, Accessories and Gear showed the highest growth of up 22% (TTM, YoY). It was followed by Apparel of up 20% and Footwear of up 13%. Footwear is the largest segment of adidas sales, accounting for 53% of total net sales.
In 2021, international sports competitions such as UEFA EURO 2020 football tournament and the Tokyo 2020 Olympics were finally took place. According to the company, it seems to have contributed positively to the sales of adidas. The company said that adidas is expected to continue double-digit growth in 2022.
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