After achieving a record turnover in 2022 of 2.218 billion Danish kroner (€297.8m), a 20 percent year-over-year increase in local currency from DKK 1.858 billion in 2021, Hummel has established its growth target for 2028. The Danish group is aiming to reach DKK 4 billion (€537m) and a minimum annual operating profit of DKK 300 million (€40.3) in five years by prioritizing team sports, online sales and the German market. The company’s annual online growth rate again exceeded 50 percent last year.
But the group posted an FY22 loss of DKK 89.5 million (€12m) against a record profit of DKK 115 million (€15.4m) in FY21 due to investment in a new distribution center and one-time costs related to a warehouse relocation.
“As we reflect on our progress over the last four years, we are proud to have doubled our turnover […] it has been necessary for us to invest in a new distribution center,” said Hummel CEO Allan Vad Nielsen in a statement. “We have planned and worked on this for several years, and despite the impact on our 2022 results, we believe it will yield significant long-term benefits for our brand.”
Hummel, which wants to become Europe’s leading team sports brand, has invested heavily in an upgraded product portfolio, new team sponsorships and an improved delivery profile. The group sees an opportunity to increase its market share in key markets going forward, including in Germany, and in Spain and France, where both countries generated triple-digit million DKK sales last year. Over the last three years, Hummel’s business in the German market has tripled, it said.
The group, whose brand portfolio includes Newline running apparel, Halo fashion clothing and Sometime Soon children’s fashion, expects FY23 company results to include both sales and profit growth.
Read more on Hummel’s wholesale and e-commerce strategy as well as its sustainability efforts in our interview with Hummel CEO Allan Vad Nielsen.
