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Adidas Profit & Efficiency Sales Analysis (2021)

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Questions

This Adidas sales analysis for 2021 aims to answer three main questions:

  1. Which products and regions yield the highest return in terms of profitability?
  2. Which sales method is most effective?
  3. Which retailers contribute most effectively to profit, and where is there room for improvement?

Data Source

This project uses a public Kaggle Adidas U.S. sales dataset. The analysis focuses on key fields related to profitability and sales performance, including:

  • Retailer
  • Invoice Date
  • Region, State, City
  • Product
  • Price per Unit, Units Sold, Total Sales
  • Operating Profit, Operating Margin
  • Sales Method

Source


Approach

I performed basic data cleaning in Google Sheets to ensure the dataset could be accurately analyzed in SQL by standardizing numeric and date formats.

The cleaned data was exported to CSV and imported into Microsoft SQL Server as a single table.

To answer the business questions, I used SQL to group the data by product, geography, sales method, and retailer. For each query regarding profitability, I calculated total revenue, total operating profit, and profit margin using aggregate functions.


Key Findings

  • Men’s Street Footwear is the top-performing product, leading in both total profit and margin (~39%), while Women’s Athletic Footwear has lower total profit but still strong margins (~36%), suggesting growth potential.

  • California generates the most total profit but has relatively low efficiency (~32% margin). The West is the most profitable region overall but has the lowest margin, while the South has the highest margin (~43%) despite moderate profit.

  • In-store sales drive the most revenue and total profit, but online sales have the highest margin (~39%), making them the most efficient channel.

  • Sports Direct is the strongest retailer in both profit and margin (~41%), while Walmart has the lowest performance (~34% margin). Most other retailers are similar, clustering around ~36–37%.


Recommendations

Adidas should continue their current sales strategy with Men’s Street Footwear, as the total profitability suggests they already capitalize on their most lucrative product category. However, Women’s Athletic Footwear may be under-capitalized, as it generates lower total profit despite maintaining a relatively high margin.

The company should maintain its presence in high-profit regions such as the West, but investigate the lower margins in areas like California, where a sales margin of 32% implies relatively low profit efficiency. In contrast, regions like the South, which demonstrate higher margins, may present opportunities for expansion if the bottleneck is not due to limited demand.

They should continue to expand their online sales channels, which show higher profit margins and greater efficiency despite their lower overall sales volume.

Lastly, Adidas should continue its partnership with Sports Direct, which contributes strongly to both profit and margin. At the same time, lower-performing partners such as Walmart should be evaluated to identify potential inefficiencies or opportunities for improvement.


Tools Used

  • SQL
  • Tableau
  • Excel / CSV preprocessing

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