North America
Revenues in North America decreased 16% on a currency-neutral basis and 19% in euro terms to € 5,219 million (2022: € 6,404 million) as this market was particularly impacted by the company’s conservative sell-in strategy to reduce high inventory levels as well as by the significantly lower Yeezy sales. The currency-neutral decrease was driven by declines in both Performance and Lifestyle.
Net sales in North America
(16%)
C.N.
€ 5,219 million
|
|
2023 |
|
2022 |
|
Change |
|
Change (currency-neutral) |
||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net sales |
|
5,219 |
|
6,404 |
|
(19%) |
|
(16%) |
||||
Gross margin |
|
40.1% |
|
42.9% |
|
(2.8pp) |
|
– |
||||
Segmental operating profit |
|
273 |
|
988 |
|
(72%) |
|
– |
||||
Segmental operating margin |
|
5.2% |
|
15.4% |
|
(10.2pp) |
|
– |
||||
|
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Gross margin in North America decreased 2.8 percentage points to 40.1% (2022: 42.9%). The significant negative impact from increased supply chain costs and higher discounting was only partly offset by better pricing and a more favorable business mix. Operating expenses were up 2% to € 1,872 million versus € 1,831 million in 2022, driven by a mid-single-digit increase in operating overheads. Operating expenses as a percentage of sales increased 7.3 percentage points to 35.9% (2022: 28.6%). Operating profit in North America decreased 72% to € 273 million from € 988 million in 2022. As a result of the lower gross margin and higher operating expenses as a percentage of sales, operating margin decreased 10.2 percentage points to 5.2% from 15.4% in 2022.
How did the 2023 financial year go?
More on Business Performance