Germany's Puma reports 9.8% sales growth in Q4 2024, reaching €2.3 bn

Puma’s footwear business grew 9.2 per cent and apparel was up 8.8 per cent, while accessories increased 14.5 per cent. All regions contributed to the sales growth (ca) in the fourth quarter, driven by a strong improvement in the wholesale business (+6.9 per cent) and continued growth of 16.1 per cent in direct-to-consumer (DTC) business, Puma said in a press release.

For the full year 2024, sales of the company grew by 4.4 per cent (ca) to €8.9 billion (~$9.3 billion) (+2.5 per cent reported) and in line with the outlook. All regions, product divisions and distribution channels improved currency adjusted sales compared to last year. This growth was accompanied by a 110-basis point (bps) improvement in gross profit margin to 47.4 per cent.

The full-year 2024 operating result (EBIT) were €622 million, and in line with the EBIT outlook for the full year 2024. EBIT margin was 7.1 per cent and net income was €282 million (2023: €305 million).

“While we achieved solid sales growth in 2024 and made meaningful progress on our strategic initiatives, we are not satisfied with our profitability,” said Arne Freundt, chief-executive officer (CEO) at Puma. “With a heightened focus on translating top-line growth to increased profitability growth, we have initiated ‘next level’, a comprehensive efficiency program targeting cost optimisation and operational improvements. Combined with decisive actions already taken, we will implement further cost control measures in 2025. While we continue to operate in a dynamic environment, we are encouraged by our improved growth throughout 2024 and expect 2025 to grow stronger than 2024.”

When compared to the first nine months (9M) of 2024, a stronger growth trajectory was achieved across Eastern Europe, Middle East, and Africa (EEMEA) (+14.3 per cent), Europe (+10.3 per cent), Greater China (+7.4 per cent), Other Asia-Pacific (APAC) (+19.0 per cent) and North America (+2.6 per cent), while Latin America's sales growth was softer with +7.0 per cent.

“The programme ‘next level’ has been initiated with the aim to achieve an EBIT margin of 8.5 per cent by 2027 by optimising direct and indirect costs, including personnel expenses through better resource allocation aligned with our strategic growth areas,” said the press release.

In combination with its brand elevation strategy, the company is committed to achieve a 10 per cent EBIT margin in the long-term.

Fibre2Fashion News Desk (SG)