German brand Puma reports sales of $2.4 bn in Q3 2024, 5% YoY growth

The gross profit margin improved by 80 basis points to 47.9 per cent (Q3 2023: 47.1 per cent). Net income decreased by 3.0 per cent to €127.8 million (~$141.98 million) (vs Q3 2023: €131.7 million) and earnings per share amounted to €0.86 (Q3 2023: €0.88).

Puma’s wholesale business increased by 1.5 per cent (ca) to €1,728.2 million, and direct-to-consumer (DTC) business grew by 17.0 per cent to €580.0 million. Sales in owned and operated retail stores increased 12.8 per cent YoY and e-commerce increased 26.4 per cent YoY. This resulted in an increased DTC share of 25.1 per cent (Q3 2023: 22.7 per cent), Puma said in its financial statement.

The operating result (EBIT) increased by 0.3 per cent to €237.0 million (Q3 2023: €236.3 million), primarily due to an improved gross profit margin. The EBIT margin came in at 10.3 per cent (Q3 2023: 10.2 per cent). The financial result amounted to €-46.7 million (Q3 2023: €-45.5 million), which is in line with the prior year.

Operating expenses (OPEX) increased by 1.1 per cent to €873.4 million (Q3 2023: €863.7 million). The increase was mainly driven by the continued growth of direct-to-consumer (DTC) business, warehouse ramp-up costs and digital infrastructure projects.

Sales in the Americas region increased by 11.4 per cent (ca) to €872.2 million, with the US and Latin America contributing to the growth. The Asia/Pacific region recorded sales growth of 3.0 per cent (ca) to €430.4 million, showing a sequential improvement despite softer consumer demand in Greater China.

In the EMEA region, sales increased by 0.8 per cent (ca) to €1,005.5 million, driven by continued growth in Europe, which was partially offset by a decline in Eastern Europe, Middle East, and Africa (EEMEA) due to muted consumer sentiment in the Middle East and a strong prior year quarter (EEMEA grew +64 per cent ca in Q3 2023), stated the release.

Footwear sales in Q3 2024 increased by 9.3 per cent (ca) to €1,240.3 million, driven by growth in performance, led by Football and Running, and in sport style, led by Core and Kids. Sales in Accessories grew by 2.9 per cent (ca) to €304.2 million, while sales of apparel decreased by 0.7 per cent (ca) to €763.6 million.

Arne Freundt, chief executive officer of Puma, said: “I am pleased with the progress on our brand elevation journey as we are building the foundation for accelerated and sustainable growth. ?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 consumer relevance in the Sportstyle Prime market. Our new Speedcat Go-to-Market Strategy is performing very well, and I am excited about the commercial launch of the Speedcat in a few weeks. I am also pleased that our wholesale business has returned to growth.

“With accelerated sales growth in Q3 and EBIT meeting expectations as well as a strong orderbook for Q4, we're on track to meet our full-year 2024 outlook. This success is due to the great engagement of the entire Puma Family and its incredible partners.”

Nine-month (9M) financial results

Sales for the 9M period increased by 2.6 per cent (ca) to €6,527.8 million, with currency headwinds having a negative impact on sales in euro terms (-1.4 per cent reported). The gross profit margin in this period increased by 130 basis points to 47.4 per cent (9M 2023: 46.2 per cent). Net income of the company decreased by 15.4 per cent to €257.1 million (9M 2023: €304.0 million) and earnings per share amounted to €1.72 (9M 2023: €2.03).

The Americas region led the growth with a sales increase of 7.2 per cent (ca) to €2,549.7 million, followed by the Asia/Pacific region with a sales increase of 1.8 per cent (ca) to €1,298.9 million, while sales in the EMEA region declined by 1.1 per cent (ca) to €2,679.2 million.

Puma’s wholesale business declined by 1.5 per cent (ca) to €4,866.0 million and DTC business grew by 16.8 per cent (ca) to €1,661.8 million. Sales in owned & operated retail stores grew 14.8 per cent (ca) and e-commerce increased 20.7 per cent (ca). This resulted in an increased DTC share of 25.5 per cent (9M 2023: 22.7 per cent).

Among product divisions, sales in footwear increased by 4.2 per cent (ca) to €3,518.8 million, apparel grew by 1.9 per cent (ca) to €2,077.4 million and accessories decreased by 1.8 per cent (ca) to €931.7 million.

Operating expenses (OPEX) increased by 1.7 per cent to €2,598.0 million (9M 2023: €2,555.5 million).

The operating result (EBIT) decreased by 2.7 per cent to €513.2 million (9M 2023: €527.2 million), which resulted in an EBIT margin of 7.9 per cent (9M 2023: 8.0 per cent).

The financial result decreased to € -116.2 million (9M 2023: € -76.2 million) due to a lower interest result and higher currency related losses.

2024 outlook

Puma has reiterated its expectations for currency-adjusted sales growth in 2024 to be in mid-single-digit and operating result (EBIT) to in the range of €620 million to €670 million (2023: €621.6 million). The company continues to expect net income (2023: €304.9 million) to change in 2024 in line with the operating result.

Fibre2Fashion News Desk (SG)