EQS-News: PUMA SE: PUMA achieves its highest annual Sales and EBIT ever in 2022
Source: EQS
Q4 & FULL YEAR 2022
PUMA achieves its highest annual Sales and EBIT ever in 2022
2022 Fourth Quarter Facts
2022 Full Year Facts
“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 I'm honored to have the chance to lead this fantastic company and take PUMA together with my great team to new heights.”
Sales Development
Fourth Quarter 2022
Sales increased by 21.1% (ca) to € 2,196.6 million (+24.3% reported). The
PUMA’s Wholesale business increased by 25.7% (ca) to € 1,557.7 million and the Direct-to-Consumer (DTC) business was up by 11.0% (ca) to € 638.9 million. Sales in owned & operated retail stores increased 10.8% (ca) and e-commerce increased 11.4% (ca). The strong growth in our Wholesale distribution channel was supported by our continued focus on being the best partner for our retailers. At the same time, as expected, improved product availability led to stronger growth in the DTC business, especially in e-commerce.
The gross profit margin decreased by 420 basis points to 44.0% (Q4 2021: 48.2%), mainly due to an industry-wide increase in promotional activity as a result of high inventory levels in the market. In addition, higher sourcing prices due to raw materials and freight rates as well as an unfavorable distribution channel mix had a negative impact, while price adjustments partially compensated for the negative effects.
Operating expenses (OPEX) increased by 18.1% to € 938.7 million (Q4 2021: € 795.1 million) as a result of higher marketing expenses, a higher number of retail stores in operation as well as higher sales-related distribution costs. The OPEX ratio improved by 230 basis points to 42.7% (Q4 2021: 45.0%) as a result of higher sales growth and continued focus on OPEX control.
The operating result (EBIT) decreased by 37.6% to € 40.5 million (Q4 2021: € 65.0 million) and the EBIT margin came in at 1.8% (Q4 2021: 3.7%).
The taxes on income showed a gain of € 9.6 million (Q4 2021: expense of € 11.2 million) due to an improved outlook for the future utilization of tax loss carryforwards.
Net earnings decreased by 82.0% to € 1.4 million (Q4 2021: € 7.9 million) and earnings per share amounted to € 0.01 (Q4 2021: € 0.05).
Full Year 2022
Sales increased by 18.9% (ca) to € 8,465.1 million (+24.4% reported). The
The Wholesale business was up 22.7% (ca) to € 6,513.7 million and the Direct-to-Consumer business (DTC) increased by 7.8% (ca) to € 1,951.4 million with growth in owned & operated retails stores (+11.0% ca) and e-commerce (+2.2% ca).
The gross profit margin decreased by 180 basis points to 46.1% (FY 2021: 47.9%). This was driven by higher sourcing prices due to raw material price and freight rate increases, a less favorable channel mix and industry-wide promotional activity towards the end of the year. The negative effects were partially offset by price adjustments and currency effects.
Operating expenses (OPEX) increased by 21.0% to € 3,295.9 million (FY 2021: € 2,724.6 million). The increase was driven by higher marketing expenses, a higher number of retail stores in operation, higher sales-related distribution and warehousing costs as well as operational inefficiencies due to COVID-19. However, the respective OPEX ratio improved by 110 basis points to 38.9% (FY 2021: 40.0%) as a result of higher sales growth and continued focus on OPEX control.
The operating result (EBIT) increased by 15.0% to € 640.6 million (FY 2021: € 557.1 million) due to strong sales growth and continued OPEX control. The EBIT margin came in at 7.6%
The financial result decreased to € -88.9 million (FY 2021: € -51.8 million). This development is mainly attributable to expenses related to forward exchange transactions ("swap points"). In the financial year 2022, earnings before taxes (EBT) increased by 9.2% to € 551.7 million (FY 2021: € 505.3 million). Tax expenses were at € 127.4 million (FY 2021:
Net earnings improved by 14.2% to € 353.5 million (FY 2021: € 309.6 million) and earnings per share were at € 2.36 (FY 2021: € 2.07).
Working Capital
The working capital increased by 49.3% to € 1,086.8 million (
Cash Flow and Liquidity Situation
The free cash flow decreased by 35.7% to € 177.5 million in 2022 (FY 2021: € 276.2 million). As of
Proposal of a Dividend of € 0.82 per share
Based on the positive net earnings in 2022, the Management Board and Supervisory Board will propose to the Annual General Meeting on
Brand & Strategy Update
Faced with the ongoing COVID-19 pandemic and the war in
From the beginning of the war, we focused on our employees, athletes and partners in
While the COVID-19 pandemic eased in
Providing an attractive workplace is an important part of our people strategy, which is why we were very honored to be named “Global Top Employer” for the first time in early 2023. In 2022, we also received several recognitions as an employer such as “Company of the Year” at the German Diversity Awards.
At the start of 2023, a gender pay gap analysis, which was independently certified, showed that PUMA has closed the pay gap between men and women among its employees in
PUMA kept its eight strategic priorities unchanged in 2022: brand heat, product ranges that are right for our consumers, a comprehensive offer for women, quality of our distribution, speed and efficiency of our organizational infrastructure, re-entry into Basketball to improve our position in
As a sports company, the successes of PUMA’s sponsored athletes and teams increase our brand heat.
In 2022, our PUMA team
In club football, our PUMA teams
At the end of the season 2021/22, we secured a long-term extension to our partnership with We also expanded our reach in football, as we became the official match ball provider of the Italian football league Serie A, starting from the 2022/23 season.
At the World Athletics Championships in
Throughout the year, we added several new track and field ambassadors to our roster such as Mutaz Essa Barshim, Elaine Thompson-Herah,
With Scuderia Ferrari,
In Golf, Cobra PUMA Golf athlete
Working with ambassadors from culture, music and fashion also creates brand heat for PUMA and helps us to connect with our Gen Z audience. In 2022, we announced a long-term partnership with British-Nigerian rapper and record producer Skepta, with whom we developed a global media campaign for the RS-X sneaker, and who will also design his own PUMA collections.
At the New York Fashion Week, our spectacular FUTROGRADE show took place both on the runway and in the virtual world. The show was curated by PUMA Creative Director
With the FUTROGRADE event, we continued to explore the possibilities of Web3. We sold two exclusive NFTs (Non Fungible Tokens) as part of the event: A collectible NFT and another which could be exchanged for a pair of futuristic sneakers in the real world.
Whether it is Web3, the Metaverse or NFTs, the virtual world is becoming increasingly relevant for our young audiences. In 2022, we unveiled our largest Web3 collaboration to date with 10KTF and launched “PUMA and the Land of Games” on the online gaming platform Roblox. This virtual environment was also used to launch a real product, Manchester City’s new third kit.
In 2022, we significantly improved our product offering across all business units.
Our performance footwear, especially the running styles VELOCITY and DEVIATE which feature PUMA’s NITRO technology, showed strong sell-through and won awards such as the Runner’s World Editor’s
We expanded our product offering in Running & Training and introduced our SEASONS collection, a range of outdoor items made to protect against the elements all year round.
Our innovative
We reintroduced an important sneaker style from our archives, the SLIPSTREAM, which was presented by PUMA ambassadors such as
Our women’s offering also benefited from the launch of innovative products in Sportstyle,
Global pop superstar
To capture the increasing popularity of women’s football at the UEFA Women’s Euro in
Our strategy to offer women’s specific fits in performance sports included Basketball, where we presented the Stewie 1, the first signature shoe for a female athlete in over a decade with
The success of our athletes in basketball has increased our credibility in the sport, an important part of our positioning in the North American market. PUMA Basketball athlete LaMelo Ball became the fourth-youngest player to compete in the NBA All Star Game, while
Our partnership with LaMelo Ball has also been a great commercial success, with the introduction of his first signature shoe, MB.01, which quickly sold out in several styles and colors. In 2022, we continued this successful collaboration with several versions of LaMelo’s second shoe, the MB.02, for which we also saw very good sell-through.
To improve our distribution reach around the world, we launched our PUMA.com online store in
It is important for us to complement our international offer with products that have strong local relevance. This also includes our presence in sports such as cricket, rugby, padel or handball, where PUMA team
To reach out to young audiences who are particularly concerned about sustainability, the environment and climate change, we held our first ‘Conference of the People’ in
As part of our biodegradability experiment RE:SUEDE, 500 volunteers in
Our circularity project RE:JERSEY was introduced with PUMA football teams
On a corporate level, we announced that we had reduced our own carbon emissions and those coming from our supply chain between 2017 and 2021, even though the business grew strongly in the same period.
These and other sustainability efforts were recognized when industry publication Business of Fashion named PUMA the most sustainable brand in a ranking of 30 companies. We also received the Footwear News Sustainability Leadership Award and were given the highest possible mark for our transparency and performance on climate change by not-for-profit charity CDP.
In terms of organization, In April,
Outlook 2023
PUMA achieved another record in sales and operating result (EBIT) in the financial year 2022. We delivered the strong growth based on our continued brand momentum, successful product launches and the best possible service for our athletes, retail partners and consumers. As people make the difference, a significant part of our momentum is due to our highly engaged employees.
Despite the strong growth in 2022, we continue to face a high degree of geopolitical, macroeconomic and commercial uncertainty. The war in
Considering PUMA's strong momentum, we expect currency-adjusted sales growth in the high single-digit percentage range and operating result (EBIT) in a range of € 590 million to € 670 million (2022: € 641 million) for the financial year 2023. PUMA’s net earnings are expected to change accordingly. The development of the gross profit margin and OPEX ratio will largely depend on the extent and the duration of the negative impacts described above. Given the timing of these unfavorable factors, we expect the gross profit margin to be under more pressure in the first half of the year than in the second half. For the full year 2023, PUMA expects currencies, higher freight rates and raw material prices to again dilute profitability.
In line with previous years, PUMA will continue to focus on managing short-term challenges without compromising the mid- and long-term momentum of the brand. Our sales growth and market share gains will have priority over short-term profitability. The exciting product range for 2023 and the very good feedback from retail partners as well as consumers make us confident for the mid- and long-term success and continued growth of PUMA.
Rounding differences may be observed in the percentage and numerical values expressed in millions of Euro since the underlying calculations are always based on thousands of Euro.
Financial Calendar:
The financial releases and other financial information are available on the Internet at “about.puma.com“.
Media Relations:
Investor Relations:
Notes to the editors:
Reuters: PUMG.DE, Bloomberg: Börse
Notes relating to forward-looking statements: This document contains statements about the future business development and strategic direction of the Company. The forward-looking statements are based on management's current expectations and assumptions. They are subject to certain risks and fluctuations as described in other publications, in particular in the risk and opportunities management section of the combined management report. If these expectations and assumptions do not apply or if unforeseen risks arise, the actual course of business may differ significantly from the expected developments. We therefore assume no liability for the accuracy of these forecasts.
PUMA is one of the world’s leading sports brands, designing, developing, selling and marketing footwear, apparel and accessories. For more than 70 years, PUMA has relentlessly pushed sport and culture forward by creating fast products for the world’s fastest athletes. PUMA offers performance and sport-inspired lifestyle products in categories such as Football, Running and Training, Basketball, Golf, and Motorsports. It collaborates with renowned designers and brands to bring sport influences into street culture and fashion.
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Language: | English |
Company: | |
91074 |
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Phone: | +49 9132 81 0 |
Fax: | +49 9132 81 42375 |
E-mail: | investor-relations@puma.com |
Internet: | www.puma.com |
ISIN: | DE0006969603 |
WKN: | 696960 |
Indices: | MDAX |
Listed: | Regulated Market in |
EQS News ID: | 1571343 |
End of News |
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1571343 01.03.2023 CET/CEST