Puma’s sales and net income experienced declines in the first half of 2024, prompting adjustments to their financial outlook. The company remains optimistic about improvement in the latter part of the year.
- The German sportswear brand reported a 2.1% decline in sales, reaching €4.2 billion.
- Net income fell by 25% to €129.3 million, heavily influenced by adverse currency effects.
- While EBIT decreased by 5.1% year-on-year, the company believes its strategic initiatives will foster growth.
- Despite challenges, Puma’s leadership maintains a positive outlook for financial recovery in the upcoming quarters.
Puma has faced a difficult first half of the year, with a reported 2.1% decline in sales, amounting to €4.2 billion. The challenges stemmed largely from tough currency conditions which adversely impacted sales figures across global markets.
Further reflecting the adverse economic climate, net income declined by 25% to €129.3 million, with these figures aligning with the company’s anticipations. Economic pressures such as volatile exchange rates have weighed heavily on Puma’s financial results, significantly affecting profitability.
Despite these setbacks, the company reported a minor increase of 1.6% in their operating results (EBIT) during the second quarter, reaching €117 million. This was achieved despite the persisting negative currency impacts, which also influenced gross profit margins and operating expense ratios.
Puma has displayed resilience, attributing success in part to robust retail partnerships and strategic brand initiatives. As part of its growth strategy, it has focused on priorities such as brand elevation, product excellence, and distribution quality, especially targeting the U.S. and Chinese markets.
Looking into the future, Puma has slightly adjusted its full year EBIT expectations to range between €620 million and €670 million, down from the previous upper expectation of €700 million. This adjustment reflects the ongoing commitment to meeting financial goals amidst global economic challenges.
CEO Arne Freundt expressed pride in the company’s ability to meet quarterly expectations and conveyed optimism for the remainder of the year. The focus remains on delivering strong results despite the headwinds posed by unfavorable currency scenarios and broader socioeconomic pressures.
Puma remains committed to navigating economic challenges, with optimism for recovery and growth in the upcoming quarters.
