In the first half of 2024, Puma’s financial performance showed a decrease in various metrics, signalling challenges for the renowned sportswear brand.
- Puma’s sales declined by 2.1% year on year, totalling €4.2 billion (£3.61 billion) for the period.
- Net income for the brand decreased by a significant 25% to €129.3 million.
- Earnings before interest and taxes (EBIT) also saw a fall of 5.1%, with currency effects cited as a primary factor.
- Despite these setbacks, Puma remains optimistic about the second half of the year and strategic market focus.
In the first six months of 2024, Puma experienced a year-on-year sales decline of 2.1%, resulting in revenue of €4.2 billion (£3.61 billion). This financial downturn has raised concerns regarding the company’s market performance amidst challenging economic conditions.
The company reported a notable decrease in net income by 25%, amounting to €129.3 million. Such a drop reflects the difficulties faced in maintaining profitability, alongside shifting consumer sentiments in the face of global macroeconomic uncertainties.
Puma’s earnings before interest and taxes (EBIT) reduced by 5.1% to €276.2 million compared to the previous year. According to the brand, this downturn was primarily impacted by adverse currency effects, which also influenced sales figures and operating expenses.
Despite these financial challenges, Puma’s leadership maintains a positive outlook for the latter half of the year. The company’s full-year EBIT expectations have been adjusted to a range of €620 million (£532 million) to €670 million (£575 million), down from the earlier forecast topping at €700 million (£601 million).
In a statement, CEO Arne Freundt expressed pride in the company’s resilience, highlighting the strong retail partnerships and strategic brand initiatives aimed at navigating market headwinds. He remarked on the effective operating performance during the second quarter, notwithstanding currency pressures and supply chain disruptions.
The sportswear industry has generally faced headwinds, a sentiment echoed by analysts like Pippa Stephens from GlobalData. She described Puma’s performance as “lacklustre,” attributing this to the broader market struggles where consumers are mindful of expenditures amid economic challenges. Puma’s currency-adjusted revenue showed a modest increase of 1.3%, signalling potential amid adversity.
Looking forward, Puma is concentrating on brand elevation, product excellence, and distribution quality, with significant focus on major markets such as the United States and China. This strategic emphasis is expected to aid Puma in capitalising on key growth opportunities while supporting retail partners and enhancing consumer engagement.
Puma aims to overcome the present challenges with strategic initiatives and remains confident in improving its financial performance in the forthcoming months.
