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Puma’s Resilience in Challenging Times: Achieves Full-Year Sales Growth Despite Weak Fourth Quarter

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Puma, the renowned sportswear brand, has navigated through a volatile market landscape to achieve robust full-year sales growth, overcoming challenges encountered in the fourth quarter. Arne Freundt, CEO of Puma, credited the company’s strong performance to its dedicated team and valued partners.

Fourth Quarter Performance:

  • Sales Decline: Puma reported fourth-quarter sales of 1.98 billion euros, representing a 4.0% decrease on a currency-adjusted basis. The decline was primarily attributed to the devaluation of the Argentine peso, impacting sales in the Americas region.
  • Regional Performance: Sales in the Americas and EMEA regions declined, while the Asia/Pacific region witnessed growth driven by strong performance in Greater China and India.
  • Gross Profit Margin: Despite currency headwinds, Puma’s gross profit margin improved by 290 basis points to 47.0% in the fourth quarter, driven by fewer promotional activities and favorable cost dynamics.
  • EBIT Surge: Puma’s fourth-quarter EBIT surged by 133.0% to 94.4 million euros, attributed to gross profit margin improvement and stringent cost management.

Full-Year Results:

  • Sales Growth: Despite the challenges, Puma achieved a full-year sales growth of 6.6% on a currency-adjusted basis, reaching 8.61 billion euros. The Asia/Pacific and EMEA regions drove growth, while sales in the Americas were impacted by the Argentine peso devaluation.
  • Gross Profit Margin: The company’s full-year gross profit margin improved to 46.3%, supported by price adjustments and favorable geographical mix effects.
  • EBIT and Net Income: Puma’s full-year EBIT decreased slightly to 621.6 million euros, while net income amounted to 304.9 million euros, reflecting a comparable basis to the previous year.

Fiscal 2024 Outlook:

  • Sales Growth Expectation: Puma anticipates mid-single-digit currency-adjusted sales growth for fiscal 2024.
  • EBIT Projection: The company expects an EBIT in the range of 620 million to 700 million euros, assuming corresponding price adjustments in Argentina to counter potential peso devaluation.

Puma remains optimistic about its future prospects, leveraging its strong brand and strategic initiatives to drive continued growth in the competitive sportswear market.