PUMA (PUM) Q4 2022 earnings summary

Executive summary

• FY 2022 sales reached a record €8,465.1 million, up 18.9% currency-adjusted; EBIT rose 15.0% to a record €640.6 million.

• Strong growth across regions and product divisions was tempered by lower gross margin, elevated inventory and uneven demand in Greater China.

Financial highlights

• Q4 sales rose 21.1% currency-adjusted to €2,196.6 million; EBIT fell 37.6% to €40.5 million and net earnings fell 82.0% to €1.4 million.

• FY gross profit margin was 46.1%, down 180 bps YoY; OPEX increased 21.0% to €3,295.9 million, while EBIT margin was 7.6% versus 8.2%.

• FY net earnings increased 14.2% to €353.5 million; EPS rose to €2.36 from €2.07.

Outlook and guidance

• FY 2023 currency-adjusted sales growth expected in the high single-digit percentage range; EBIT guidance is €590 million to €670 million, with net earnings expected to change accordingly.

• Gross margin expected to face greater pressure in H1 than H2; currencies, freight rates and raw material prices expected to dilute FY profitability.

• Sales growth and market-share gains prioritized over short-term profitability; outlook assumes no further deterioration in geopolitical and macroeconomic conditions and normalization in the U.S. and China.