Operating Expenses € in millions
Operating Expenses in % of net sales
Operating Expenses as a Percentage of Sales Decrease
Group operating expenses, including depreciation and amortization
(excluding goodwill), are influenced by two components: marketing
working budget and operating overhead costs. Operating expenses as a
percentage of sales declined 1.5 percentage points to 36.7% in 2006
from the 2005 level of 38.2%. This decrease mainly reflects Reebok’s
lower than Group average operating expense level despite negative
effects from purchase price allocation. In absolute terms, operating
expenses increased by 46% to € 3.704 billion in 2006 from € 2.537
billion in 2005. For the adidas Group excluding Reebok, operating
expenses as a percentage of sales were 38.0% in 2006, which is 0.2
percentage points lower than the 2005 level of 38.2%. Continued
efficiency improvements in operating overhead costs more than offset
higher marketing expenses related to the 2006 FIFA World Cup™. In
absolute terms, operating expenses for the adidas Group excluding
Reebok increased by 13% to € 2.872 billion in 2006 from € 2.537 billion
in 2005.
Operating Expenses € in mililons
Marketing Working Budget in% of net sales
