BERLIN – Puma mentioned gross sales grew 4 % final 12 months, 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 forex 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 12 months 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 govt officer Arne Freundt mentioned he was glad 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 unstable macroeconomic setting.
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 forex volatility, which is anticipated to weigh on client sentiment and demand in key markets.”
Consequently, Puma expects progress this 12 months to be within the low- to mid-single digits and for EBIT to come back 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 can embody closing unprofitable places. Puma expects this system to lead to 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 12 months in the past, each when it comes to high and backside traces,” Arndt conceded in his assertion. However, he added, “we’re totally conscious of the foundation causes of our challenges and are addressing them with full focus and rigor.”
The constructive fourth quarter outcomes had been mirrored in full-year figures in all of Puma’s gross sales territories.
Most likely a very powerful turnaround occurred in its key residence market of EMEA — Europe, the Center East and Africa — within the fourth quarter. Progress there had been down a number of share factors all 12 months, however rose 14.6 %, in forex adjusted phrases, within the fourth quarter. Over the total 12 months, Puma gross sales had been up 2.1 % in EMEA to three.48 billion euros.
Puma noticed probably the most progress within the Americas. There, after a sluggish first quarter, gross sales rose 7 % to three.54 billion euros within the full 12 months. Asia Pacific inched up steadily to finish 2024 with 3.8 % progress.
“All main markets inside Asia Pacific, together with Better China, Japan, and India, contributed to this progress,” the corporate mentioned in an announcement.
By way of product classes, probably the most progress got here in footwear, the place gross sales rose 5.4 % in forex 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.
