Puma assures its “on track” for FY outlook despite sales dip

Puma may be feeling the pressure as rival Adidas is seemingly releasing hit after hit in the footwear category. Today, the sportswear giant revealed that sales remained flat for the first half of 2024, dipping 2.1% but up 1.3% when currency adjusted.

For the second quarter, Puma shared the following results:

• Currency-adjusted sales up 2.1% to £1.8 billion (€2.1 billion).
• By channel, wholesale dropped 3.3% due to a decline in EEMEA. Meanwhile, DTC grew 19.5%, supported by "continued brand momentum and scaled-back promotions".
• By category, footwear sales remained flat, while apparel sales grew 9.2% and accessories sales declined 4.7%.
• Gross profit margin improved by 200 basis points to 46.8%, while EBIT increased 1.6% to £100 million (€117 million).
• Net income decreased 23.8% to £35 million (€41 million), due to "higher currency-related losses and a lower interest result".

First Half Year 2024 results are as follows:

• Currency-adjusted sales up 1.3% to £3.6 million (€4.2 billion).
• By channel, wholesale declined 3.1%. DTC increased 16.7%.
• By category, footwear sales increased 1.6% and apparel grew 3.5%, but accessories decreased 4%.
• Gross profit margin increased by 150 basis points to 47.2%, while EBIT decreased 5.1% to £237 million (€276 million).
• Net income decreased 25% to £111 million (€129 million).

Looking ahead, the company said: "The development of the operating result and net income is fully in line with our expectations that the second half of the year particularly in the fourth quarter, will be stronger than the first half, and that net income will improve in line with the operating result outlook for FY 2024".

Puma is narrowing its outlook for the operating result (EBIT) to a range of £532-575 million (€620-670 million). It expects net income to change in 2024 in line with the operating result.

Arne Freundt, Chief Executive Officer of Puma SE, commented: "With our second quarter operating performance, we fully delivered on our outlook for the quarter and are well on track to deliver on our outlook for the full year.

"We continue to focus our efforts on increasing the brand desirability for the long-term growth of the Puma brand. With our first global brand campaign in ten years, we have done the first steps and improved our brand consideration with consumers. Delivering great innovation and newness are further pillars of that strategy. With the Euros, Copa America and now the Olympics, we have the perfect stage to create great brand visibility and credibility in our unmissable “fireglow” shoe colourway and showcase the superiority of our Nitro foam technology which enhances the performance of elite and everyday athletes. We are very proud of the achievements of our athletes and are grateful to celebrate these amazing sporting events and iconic moments together with them."