Preliminary annual results at Puma, while showing favorable, 4.4 percent currency-adjusted growth on the sales side, include a 7.5 percent decline in net income to €282 million that fell below expectations due to higher interest costs and non-controlling interests. The full-year Ebit margin was 7.1 percent from flat year-over-year operating income of €622 million.
Puma maintained the FY24 plan after the company saw sale rose in 2024. This seems like the right choice now.
Efficiency program will implement further cost control
The group has adopted an efficiency program for 2025 that will implement further cost controls as it aims to reach an Ebit margin of 8.5 percent by 2027 and a 10 percent Ebit margin over the longer term.
“With a heightened focus on translating top-line growth to increased profitability growth, we have initiated ‘nextlevel,’ a comprehensive efficiency program targeting cost optimization and operational improvements,” commented CEO Arne Freundt in a prepared statement. “…We are encouraged by our improved growth throughout 2024 and expect 2025 to grow stronger…”
Puma’s FY24 revenues grew 2.5 percent on a reported basis, in line with its outlook, to €8,817 million. Gross margin expanded by 110 basis points to 47.4 percent.
D2C sales rose 16.1%
In Q4, reported sales increased by 15.5 percent (9.8% ca) to €2,289 million, with all geographic regions contributing to the improvement. Direct-to-consumer sales rose by 16.1% year-over-year in the final period as Wholesale revenues gained 6.9 percent. The EMEA (+14.3%) and Europe (+10.3%) produced double-digit sales improvement. Greater China sales were up 7.4 percent year-over-year and by 2.6 percent across North America. The brand’s footwear sales stepped up 9.2 percent in Q4, while apparel sales rose by 8.8 percent and accessories revenues increased by 14.5 percent year-over-year.
Puma SE is scheduled to publish its FY24 results and release its FY25 outlook on March 12.
