Puma, driven by currency-adjusted revenue, grows across all global regions, with a footwear sales gain of 9.3 percent (ca) and a direct-to-consumer sales improvement of 17.0 percent (ca) in Q3. Puma SE is maintaining its FY24 outlook.
The group expects a mid-single-digit (ca) annual sales increase and an FY24 Ebit range of €620 to €670 million, flat to up 7.8 percent for the period. Puma cited “very positive” feedback from its retail partners and consumers to its Q4 product introductions and 2025 introduction and market strategies for medium- and long-term optimism.
In a statement, CEO Arne Freundt said, “We know this takes time, but we have made strong strides in enhancing our brand equity and desirability, stepping up our performance business, and building up our consumer relevance in the Sportstyle Prime market.”
| Puma - Income | |||
|---|---|---|---|
| 2024 | 2023 | Change | |
| Q3 (€ million) | |||
| Sales | 2,308.2 | 2,311.1 | -0.1% |
| Cost of sales | 1,202.7 | 1,222.4 | -1.6% |
| Gross profit | 1,105.5 | 1,088.7 | 1.5% |
| Royalty & commission income | 4.9 | 11.3 | -56.6% |
| Other operating income & expenses | -873.4 | -863.7 | -1.1% |
| Operating result (Ebit) | 237.0 | 236.3 | 0.3% |
| Financial result | -46.7 | -45.5 | -2.6% |
| Pre-tax (EBT) | 190.2 | 190.9 | -0.4% |
| Tax | 47.8 | 47.9 | -0.2% |
| Net income | 127.8 | 131.7 | -3.0% |
| Diluted EPS | 0.85 | 0.88 | -3.4% |
| Nine months (€ million) | |||
| Sales | 6,527.8 | 6,619.5 | -1.4% |
| Cost of sales | 3,432.7 | 3,564.0 | -3.7% |
| Gross profit | 3,095.1 | 3,055.5 | 1.3% |
| Royalty & commission income | 16.0 | 27.2 | -41.2% |
| Other operating income & expenses | -2,598.0 | -2,555.5 | -1.7% |
| Operating result (Ebit) | 513.2 | 527.2 | -2.7% |
| Financial result | -116.2 | -76.2 | -52.5% |
| Pre-tax (EBT) | 397.0 | 451.0 | -12.0% |
| Tax | 99.2 | 112.8 | -12.1% |
| Net income | 257.1 | 304.0 | -15.4% |
| Diluted EPS | 1.72 | 2.03 | -15.3% |
| Source: Puma | |||
Third quarter operating income inched 0.3 percent higher to €237.0 million from €236.3 million as overall revenues came in essentially flat at €2,308.2 million versus €2,311.1 million. Net income declined by 3.0 percent to €127.8 million from €131.7 million, but gross margin improved by 80 basis points to 47.9 percent on a favorable product mix and lower freight and sourcing costs. Year-on-year inventories were down by 3.3 percent to €1,811.3 million from €1,874.1 million.
The wholesale segment returned to growth in Q3 with a 1.5 percent (ca) increase to €1,728.2 million. But DTC was the big gainer, rising by 17.0 percent (ca) to €580.0 million on continued brand momentum. Sales in owned & operated retail doors rose by 12.8 percent with the corresponding ecommerce business increasing by 26.4 percent year-over-year.
EMEA sales increased by 0.8 percent (ca) to €1,005.5 million in Q3 against a difficult year-ago comparison and the impact of muted consumer sentiment in the Middle East. The Americas’ region, bolstered by a return to growth in the US, generated an 11.4 percent sales gain to €872.2 million. Asia/Pacific sales, meanwhile, rose by 3.0 percent to €430.4 million to show sequential improvement from the prior reporting period despite softer consumer demand in Greater China.
By product category, footwear sales stepped 9.3 percent (ca) higher to €1,240.3 million, augmented by growth in football (soccer) and running on the performance side and led by core and kids in the Sportstyle segment. Apparel sales slipped slightly by 0.7 percent to €763.6 million (ca) and Accessories revenues expanded by 2.9 percent (ca) to €304.2 million.
| Puma - Sales | ||||
|---|---|---|---|---|
| 2024 | 2023 | Change | ||
| Q3 (€ million) | ||||
| Total | 2,308.2 | 2,311.1 | -0.1% | |
| Regions | ||||
| EMEA | 1,005.5 | 1,020.7 | -1.5% | |
| Americas | 872.2 | 854.6 | 2.1% | |
| Asia-Pacific | 430.4 | 435.9 | -1.3% | |
| Channels | ||||
| Wholesale | 1,728.2 | 1,786.3 | -3.3% | |
| DTC | 580.0 | 524.9 | 10.5% | |
| Divisions | ||||
| Footwear | 1,240.3 | 1,215.0 | 2.1% | |
| Apparel | 763.6 | 794.6 | -3.9% | |
| Accessories | 304.2 | 301.6 | 0.9% | |
| Nine months (€ million) | ||||
| Total | 6,527.8 | 6,619.5 | -1.4% | |
| Regions | ||||
| EMEA | 2,679.2 | 2,750.5 | -2.6% | |
| Americas | 2,549.7 | 2,543.9 | 0.2% | |
| Asia-Pacific | 1,298.9 | 1,325.1 | -2.0% | |
| Channels | ||||
| Wholesale | 4,866.0 | 5,113.7 | -4.8% | |
| DTC | 1,661.8 | 1,505.8 | 10.4% | |
| Divisions | ||||
| Footwear | 3,518.8 | 3,551.5 | -0.9% | |
| Apparel | 2,077.4 | 2,105.6 | -1.3% | |
| Accessories | 931.7 | 962.4 | -3.2% | |
| Source: Puma | ||||
Freundt told analysts that the group is progressing in establishing a “distinctive brand equity” for Puma by focusing on performance, lifestyle, and marketing. A shifted marketing approach has the brand more focused on an influencer strategy to reach key consumer sets.
On the performance side, Puma’s new Deviate Nitro 3 running shoe was worn by eight of the top 20 women and men finishers in the recent New York City Marathon. The company also wants to cater to new consumers that Puma has not reached before by developing products and marketing to reach them in key retail settings. To this end, the brand is ramping up its low-profile silhouette footwear styles around the globe and will deliver new products in this range to retail partners Foot Locker, JD Sports, Zalando, and others by the end of November.
