In the second quarter of 2024, Puma sales grew by 2.1 percent (ca) to €2.1 billion, while currencies continued to be a headwind, negatively impacting sales in euro terms by approximately €50 million in Q2 2024 (-0.2 percent reported).
Sales in the Americas region increased by 9.0 percent (ca) to €887.5 million, with both the U.S. and LATAM contributing to the growth and showing a sequential improvement. The Asia/Pacific region recorded sales growth of 1.9 percent (ca) to €411.9 million, driven by continued growth in Greater China and sequential improvement in the rest of APAC. In the EMEA region, sales decreased by 4.3 percent (ca) to €817.9 million due to a decline in EEMEA from a strong prior-year quarter (EEMEA grew +111 percent ca in Q2 2023), while Europe returned to growth.
| Puma - Sales | ||||
|---|---|---|---|---|
| 2024 | 2023 | Change | ||
| Q2 (€ million) | ||||
| Regions | ||||
| EMEA | 817.9 | 846.0 | -3.3% | |
| Americas | 887.5 | 861.5 | 3.0% | |
| Asia-Pacific | 411.9 | 413.3 | -0.3% | |
| Total | 2,117.3 | 2,120.7 | -0.2% | |
| Divisions | ||||
| Footwear | 1,097.0 | 1,126.0 | -2.6% | |
| Apparel | 705.6 | 663.3 | 6.4% | |
| Accessories | 314.8 | 331.3 | -5.0% | |
| Total | 2,117.3 | 2,120.7 | -0.2% | |
| H1 (€ million) | ||||
| Regions | ||||
| EMEA | 1,673.7 | 1,729.7 | -3.2% | |
| Americas | 1,677.5 | 1,689.4 | -0.7% | |
| Asia-Pacific | 868.5 | 889.2 | -2.3% | |
| Total | 4,219.6 | 4,308.3 | -2.1% | |
| Divisions | ||||
| Footwear | 2,278.4 | 2,336.4 | -2.5% | |
| Apparel | 1,313.7 | 1,311.0 | 0.2% | |
| Accessories | 627.5 | 660.9 | -5.1% | |
| Total | 4,219.6 | 4,308.3 | -2.1% | |
| Source: Puma | ||||
Pumas wholesale business declined by 3.3 percent (ca) to €1.5 billion, due to the decline in EEMEA. In all other regions, the wholesale business improved quarter-on-quarter, driven by continued good sell-through and improved inventory levels in the trade. Puma´s Direct-to-Consumer (DTC) business grew by 19.5 percent (ca) to €587.7 million, supported by continued brand momentum and scaled-back promotions. Sales in owned & operated retail stores increased 16.5 percent (ca) and e-commerce increased 25.6 percent (ca). This resulted in an increased DTC share of 27.8 percent (Q2 2023: 24.3 percent), which is in line with expectations.
Key developments Puma´s Q2 2024
- Currency-adjusted (ca) sales increase by 2.1 percent to €2.1 billion, reflecting a negative currency impact of approximately €50 million (-0.2 percent reported)
- Gross profit margin improves by 200 basis points to 46.8 percent despite major currency headwinds
- Operating expenses (OPEX) increase by 4.3 percent to €879 million
- Operating result (EBIT) up by 1.6 percent to €117 million despite negative currency effects on sales, gross profit margin and OPEX ratio
- 2024 Sales growth outlook confirmed and EBIT band narrowed within initial range: currency-adjusted sales growth at mid-single-digit percentage rate and EBIT in a range between €620 million and €670 million
Sales in footwear were flat (ca) at €1.1 billion on the back of a strong prior-year quarter (Q2 2023: +18.2 percent ca), with all Performance categories, as well as Sportstyle Core performing very well. Sales in Apparel grew by 9.2 percent (ca) to €705.6 million, while sales in Accessories declined by 4.7 percent (ca) to €314.8 million.
The gross profit margin improved by 200 basis points to 46.8 percent (Q2 2023: 44.8 percent). Significant headwinds from currencies were more than offset by a favourable product and distribution channel mix as well as tailwinds from sourcing and freight.
Operating expenses (OPEX) increased by 4.3 percent to €879.3 million (Q2 2023: €843.4 million). The increase was primarily due to the continued growth of Puma´s DTC business and ramp-up costs of warehouse and digital infrastructure projects, while all non-demand-creating costs remained under strong control. In addition, currency-related headwinds weighed on the OPEX ratio, which increased by 180 basis points to 41.5 percent (Q2 2023: 39.8 percent).
| Puma - Income | |||
|---|---|---|---|
| 2024 | 2023 | Change | |
| Q2 (€ million) | |||
| Sales | 2,117.3 | 2,120.7 | -0.2% |
| Cost of sales | 1,126.7 | 1,170.9 | -3.8% |
| Gross profit | 990.6 | 949.8 | 4.3% |
| Royalty and commission income | 5.9 | 8.9 | -33.7% |
| Other operating income and expenses | -879.3 | -843.4 | -4.3% |
| Operating result (Ebit) | 117.2 | 115.3 | 1.6% |
| Financial result | -42.6 | -23.0 | -85.2% |
| Pre-tax | 74.6 | 92.4 | -19.3% |
| Tax | 18.4 | 23.0 | -20.0% |
| Net income | 41.9 | 55.0 | -23.8% |
| Diluted EPS | 0.28 | 0.37 | -24.3% |
| H1 (€ million) | |||
| Sales | 4,219.6 | 4,308.3 | -2.1% |
| Cost of sales | 2,230.0 | 2,341.6 | -4.8% |
| Gross profit | 1,989.6 | 1,966.8 | 1.2% |
| Royalty and commission income | 11.2 | 15.9 | -29.6% |
| Other operating income and expenses | -1,724.6 | -1,691.7 | -1.9% |
| Operating result (Ebit) | 276.2 | 290.9 | -5.1% |
| Financial result | -69.4 | -30.8 | -125.3% |
| Pre-tax | 206.7 | 260.1 | -20.5% |
| Tax | 51.4 | 65.0 | -20.9% |
| Net income | 129.3 | 172.3 | -25.0% |
| Diluted EPS | 0.86 | 1.15 | -25.2% |
| Source: Puma | |||
The operating result (EBIT) increased by 1.6 percent to €117.2 million (Q2 2023: €115.3 million), despite negative currency effects on sales, gross profit margin and OPEX ratio. Consequently, the EBIT margin improved by 10 basis points to 5.5 percent (Q2 2023: 5.4 percent).
The financial result decreased to €-42.6 million (Q2 2023: €-23.0 million) due to higher currency-related losses and a lower interest result.
Consequently, net income decreased by 23.8 percent to €41.9 million (Q2 2023: €55.0 million), and earnings per share amounted to €0.28 (Q2 2023: €0.37).
The development of the operating result and net income fully aligns with Puma’s 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.
Arne Freundt, Chief Executive Officer of PUMA, commented on Puma´s Q2 report with confidence:
“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. With a view to our strong order book for the second half of the year, we reiterate our sales growth outlook in the MSD range and are narrowing our full-year EBIT outlook range to €620-670m EBIT in light of these external factors.
With our continued focus on a good sell-through and disciplined sell-in, we were able to improve our wholesale business in all regions, except EEMEA. With our strong order book for the second half of the year, we will see further improvement in our wholesale business in the coming quarters. The robust demand for the PUMA brand continues to be driven by our great product newness and innovation which we launched in the past months.
On the Sportstyle side, we are continuing to see strong sell-through with our family footwear retail partners, while we are making good progress in the transition of our Sportstyle Prime offer with Palermo, Suede XL and Easy Rider. We are very encouraged by the first launches of Speedcat in the elevated distribution channels globally and by the great feedback of our retail partners on our product line-up.”
