Greater China
Sales in Greater China decreased 36% on a currency-neutral basis. In euro terms, sales in Greater China decreased 31% to € 3,179 million from € 4,597 million in 2021. The currency-neutral decrease was driven by double-digit decreases in all major Performance categories, except for Football with high-single-digit growth and Golf, which grew strong double-digits. Currency-neutral revenues also decreased at a double-digit rate in Lifestyle.
Net sales in Greater China
-36%
C.N.
€ 3,179 million
|
|
2022 |
|
2021 |
|
Change |
|
Change (currency-neutral) |
||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net sales |
|
3,179 |
|
4,597 |
|
(31%) |
|
(36%) |
||||
Gross margin |
|
46.7% |
|
51.8% |
|
(5.1pp) |
|
– |
||||
Segmental operating profit |
|
322 |
|
1,194 |
|
(73%) |
|
– |
||||
Segmental operating margin |
|
10.1% |
|
26.0% |
|
(15.8pp) |
|
– |
||||
|
||||||||||||
Gross margin in Greater China decreased by 5.1 percentage points to 46.7% from 51.8% in 2021. The negative impact from inventory write-offs, significantly higher discounting and higher supply chain costs could not be offset by positive currency and pricing effects. Operating expenses were down 2% to € 1,169 million (2021: € 1,188 million), reflecting a double-digit decrease in marketing expenditure, while operating overhead expenses grew in the single-digits. Operating expenses as a percentage of sales increased 10.9 percentage points to 36.8% versus 25.8% in the prior year. Operating profit in Greater China decreased 73% to € 322 million versus € 1,194 million in 2021. Operating margin decreased 15.8 percentage points to 10.1% from 26.0% in 2021.
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