• DEUTSCH

Group sales up in all product categories

In 2010, Group sales grew in all product categories on a currency-neutral basis. Currency-neutral footwear sales increased 9% during the period. This development was due to growth in the football, running and outdoor categories. Apparel revenues increased 9% on a currency-neutral basis, driven by growth in football, running and basketball. Currency-neutral hardware sales increased 5% compared to the prior year, primarily due to strong growth in the football category. Currency translation effects had a positive impact on sales in euro terms see   13.

Cost of sales increases

Cost of sales is defined as the amount we pay to third parties for expenses associated with producing and delivering our products. Own-production expenses are also included in the Group’s cost of sales. However, these expenses represent only a very small portion of total cost of sales. In 2010, cost of sales was € 6.260 billion, representing an increase of 10% compared to € 5.669 billion in 2009. This development was mainly due to increasing sourcing volumes in footwear, apparel and hardware. The optimisation of sourcing processes as well as the reduction of input costs as a result of lower raw material prices at the time of sourcing had a positive impact on cost of sales.

	12 2010 net sales by product category