The company’s operating expenses (OPEX) amounted to €3,296 million (FY21: €2,725 million) and the OPEX ratio improved to 38.9 per cent (FY21: 40 per cent).
Puma has reported an increase of approximately 18.9 per cent in sales to €8,465 million in FY22, compared to the previous year’s sales of €6,805 million. The company’s gross profit margin decreased to 46.1 per cent from the previous year’s 47.9 per cent, and the operating expenses amounted to €3,296 million compared to €2,725 million in FY21.
The operating result (EBIT) in FY22 improved by 15 per cent to €641 million from the previous year’s €557 million, resulting in an EBIT margin of 7.6 per cent compared to 8.2 per cent in FY21. The net earnings also improved to €354 million from €310 million in the previous year, and earnings per share increased to €2.36 from €2.07 in FY21, the company said in a press release.
In the fourth quarter (Q4) of FY22, Puma’s sales increased by 21.1 per cent to €2,196.6 million, with strong growth recorded in the Americas and Europe, the Middle East, and Africa (EMA) regions. Puma’s wholesale business increased by 25.7 per cent to €1,557.7 million, and the direct-to-consumer (DTC) business was up by 11.0 per cent to €638.9 million, supported by continued focus on being the best partner for retailers and improved product availability.
The Americas region recorded strong sales growth of 29 per cent in Q4 FY22, while EMEA’s sales were up by 26.1 per cent and Asia/Pacific saw a sales increase of 1.6 per cent, although COVID-19-related lockdowns and geopolitical tensions continued to impact business in Greater China.
IN Q4 FY22, sales in footwear were up 53.3 per cent year-on-year (YoY) (currency adjusted), driven by continued strong demand for performance categories like running and training, team sports, and basketball, as well as for sportstyle. Sales in apparel and accessories declined by 1.6 per cent YoY and 5 per cent YoY (currency adjusted) respectively, mainly because of softer demand in North America and Greater China.
Looking ahead, Puma expects high single-digit percentage sales growth for FY23, with an operating result (EBIT) range of €590 million to €670 million. The development of the gross profit margin and OPEX ratio will depend on the extent and duration of the negative impacts of currencies, higher freight rates, and raw material prices, with the gross profit margin expected to be under more pressure in the first half of the year than in the second half.
“2022 was a record year for Puma. We accelerated our growth across all product categories and worldwide despite a volatile market environment. This success is thanks to our amazing Puma family team and to our great partnerships with athletes, retailers, and suppliers. While facing some economic headwinds in 2023, we remain hungry and will advance the execution of our successful strategy. We will focus on elevating our brand strength and on winning market share in the US and China. I’m honoured to have the chance to lead this fantastic company and take Puma together with my great team to new heights,” said Arne Freundt, chief executive officer of Puma SE.
Fibre2Fashion News Desk (DP)