Greater China
Sales in Greater China increased 8% on a currency-neutral basis. In euro terms, sales were flat at € 3,190 million (2022: € 3,179 million). The currency-neutral increase was due to double-digit growth in Performance, reflecting strong growth in all categories. Currency-neutral revenues in Lifestyle increased at a mid-single-digit rate. Strong double-digit growth in Originals and Sportswear was partly offset by the significantly lower Yeezy business.
Net sales in Greater China
+8%
C.N.
€ 3,190 million
|
|
2023 |
|
2022 |
|
Change |
|
Change (currency-neutral) |
|---|---|---|---|---|---|---|---|---|
Net sales |
|
3,190 |
|
3,179 |
|
0% |
|
8% |
Gross margin |
|
48.7% |
|
46.7% |
|
2.0pp |
|
– |
Segmental operating profit |
|
553 |
|
322 |
|
72% |
|
– |
Segmental operating margin |
|
17.3% |
|
10.1% |
|
7.2pp |
|
– |
Gross margin in Greater China improved by 2.0 percentage points to 48.7% from 46.7% in 2022. The significant negative impact from increased supply chain costs was more than offset by less discounting, favorable currency developments, as well as lower inventory write-offs. Operating expenses were down 14% to € 1,002 million (2022: € 1,169 million), mainly driven by a double-digit decrease in operating overheads. Operating expenses as a percentage of sales decreased 5.4 percentage points to 31.4% versus 36.8% in the prior year. Operating profit in Greater China increased 72% to € 553 million versus € 322 million in 2022. As a result of the higher gross margin and lower operating expenses as a percentage of sales, operating margin improved 7.2 percentage points to 17.3% from 10.1% in 2022.
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