In the first half of 2024, Puma experienced a sales decline of 2.1%, attributed to adverse currency effects and global economic challenges. This downturn led to a more conservative financial projection for the year.
- Puma’s net income plummeted by 25% year-on-year, amounting to €129.3 million for the initial six months, marking a significant downturn.
- Despite a challenging market, the company’s operating result (EBIT) for the second quarter showed a slight increase of 1.6%, reaching €117 million.
- Puma has adjusted its full-year EBIT forecast to between €620 million and €670 million from a previous high of €700 million.
- Puma’s executive team remains optimistic of a stronger performance in the latter half of the year, bolstered by strategic initiatives in key markets.
In the first six months of 2024, Puma’s sales recorded a 2.1% decrease, falling to €4.2 billion compared to the previous year. This decline is primarily ascribed to unfavourable currency fluctuations and ongoing macroeconomic disruptions impacting consumer demand globally. Consequently, the German sportswear giant has moderated its financial outlook to reflect these challenging conditions.
Puma’s net income experienced a sharp reduction of 25% year-on-year, settling at €129.3 million. This stark decrease highlights the pressure exerted by external economic factors, particularly adverse currency exchange rates, which have strained the company’s profitability.
Despite these hurdles, there was a glimmer of resilience in the company’s financial performance; the EBIT for the second quarter rose marginally by 1.6% to €117 million. This suggests that, even amidst a testing economic landscape marked by increased operational costs and subdued consumer sentiments, Puma managed to slightly bolster its operational efficiency.
In response to the economic pressure, Puma has revised its earnings before interest and taxes (EBIT) forecast for the entire year, now projecting a range of €620 million to €670 million, down from the earlier ceiling of €700 million. This more conservative forecast underscores the brand’s cautious approach amid a volatile retail environment.
Puma remains determined to navigate these turbulent times with strategic initiatives aimed at enhancing brand quality, product excellence, and distribution efficiency, focusing particularly on expanding its market presence in the US and China. CEO Arne Freundt expressed confidence in meeting the adjusted projections, citing the company’s firm partnership with retailers and the dedication of its team as pivotal elements in countering the current economic headwinds.
Puma’s careful fiscal adjustments reflect its commitment to overcoming global economic challenges and enhancing future profitability.
