Puma enjoys record 2022, but warns of challenges ahead

Puma has reported record revenue and EBIT in its most recent annual results, but warned that it faces a “high degree” of “uncertainty” in 2023.

Full-year sales at the German sportswear giant increased 24.4 percent on a reported basis to 8.45 million euros, while EBIT rose to 641 million euros from 557 million euros a year earlier.

Earnings per share rose to 2.36 euros from 2.07 euros the prior year.

Chief executive officer Arne Freundt hailed a “record year” at Puma. “We accelerated our growth across all product categories and worldwide despite a volatile market environment,” he told investors.

Revenue for the fourth quarter increased by 24.3 percent to 2.2 billion euros. In the Americas, sales were up 29 percent on a constant currency basis, with a particularly strong performance in Latin America.

Sales in EMEA were up 26.1 percent, driven by strong growth across “almost all” key markets in Europe.

The Asia/Pacific region recorded a smaller increase of 1.6 percent, as Mainland China continued to be impacted by Covid-related restrictions, which was offset by “strong growth” across other key markets.

Q4 profit narrows

Despite sales growth in Q4, the company posted net earnings of 1 million euros, down from 8 million euros a year earlier. Meanwhile, EBIT came in at 41 million euros, down from 65 million euros.

Looking forward, Puma said it continues to face “a high degree of geopolitical, macroeconomic, and commercial uncertainty”, including the impact of the war in Ukraine and high inflation.

“For 2023, we assume that there will be no further deterioration of the above mentioned factors and expect a normalization of market conditions in the US and China,” the company said.

Puma now expects currency-adjusted sales growth in the high single-digit percentage range and EBIT in the range of 590 million euros to 670 million euros.

Looking forward, Freundt said the focus was on “elevating our brand strength and on winning market share in the US and China”.