BERLIN – Puma mentioned gross sales grew 4 % final yr, boosted by a powerful year-end, however the German sportswear firm lowered its forecast for 2025 working revenue because it prepares to implement a cost-saving program within the face of ongoing political and financial tensions.
Gross sales in foreign money adjusted phrases totaled 8.82 billion euros in 2024 as a complete, following a 9.8 % fillip within the fourth quarter. The remainder of the yr had been lackluster, with Puma’s gross sales both remaining static or dipping barely in each quarter earlier than recovering within the final three months.
Puma chief government officer Arne Freundt mentioned he was happy with the outcomes, however admitted the corporate had work to do.
“I’m happy that we delivered a strong gross sales progress on a currency-adjusted foundation,” Freundt mentioned in an announcement, earlier than happening to speak concerning the model’s challenges with “stagnant profitability” and a risky macroeconomic atmosphere.
Puma’s EBIT — earnings earlier than pursuits and taxes — remained static at 622 million euros in 2024.
The corporate “anticipates that geopolitical tensions and macroeconomic challenges will proceed, particularly commerce disputes and foreign money volatility, which is predicted to weigh on shopper sentiment and demand in key markets.”
Because of this, Puma expects progress this yr to be within the low- to mid-single digits and for EBIT to return in someplace between 520 and 600 million euros. The lower-than-expected EBIT for 2025 would be the results of a value saving program that the corporate is instituting and which is able to embody closing unprofitable places. Puma expects this system to end in a one-off price of 75 million euros.
Puma introduced its steering on Tuesday night in Germany, earlier than the discharge of official full-year outcomes. This was beneath market expectations and in morning buying and selling, Puma shares fell in consequence.
“Our outlook for 2025 is beneath the expectations we set a yr in the past, each when it comes to high and backside strains,” Arndt conceded in his assertion. However, he added, “we’re absolutely conscious of the basis causes of our challenges and are addressing them with full focus and rigor.”
The constructive fourth quarter outcomes have been mirrored in full-year figures in all of Puma’s gross sales territories.
Most likely a very powerful turnaround occurred in its key house market of EMEA — Europe, the Center East and Africa — within the fourth quarter. Development there had been down a number of share factors all yr, however rose 14.6 %, in foreign money adjusted phrases, within the fourth quarter. Over the complete yr, Puma gross sales have been up 2.1 % in EMEA to three.48 billion euros.
Puma noticed essentially the most progress within the Americas. There, after a gradual first quarter, gross sales rose 7 % to three.54 billion euros within the full yr. Asia Pacific inched up step by step to finish 2024 with 3.8 % progress.
“All main markets inside Asia Pacific, together with Higher China, Japan, and India, contributed to this progress,” the corporate mentioned in an announcement.
When it comes to product classes, essentially the most progress got here in footwear, the place gross sales rose 5.4 % in foreign money adjusted phrases to 4.73 billion euros. Attire grew 3.7 % to 2.81 billion euros. Gross sales of equipment rose 2 % to 1.27 billion euros.
