PUMA Sees Growth In Q4 Sales, Warns Of Cost Cut In 2025

Sports company Puma SE PMMAF reported fourth-quarter sales growth of 9.8% on a currency-adjusted basis, totaling 2.289 billion euros (~$2.38 billion). The growth was 15.5% reported on a reported basis.

Overall growth in EMEA was 14.3%, Europe (+10.3%), Greater China (+7.4%), Other APAC (+19.0%), and North America (+2.6%).

However, sales growth in LATAM remained relatively softer at +7.0%. PUMA’s Footwear and Apparel businesses grew by 9.2% and 8.8%, respectively, while Accessories saw a 14.5% increase.

PUMA reported an EBIT of 109 million euros, up from 94 million euros in the same quarter of 2023, with net income surging to 24 million euros, compared to 1 million euros last year, although both figures still fell short of expectations.

Full-year sales grew by 4.4% (currency-adjusted) to 8.817 billion euros, meeting its expectations.

“While we achieved solid sales growth in 2024 and made meaningful progress on our strategic initiatives, we are not satisfied with our profitability, “said CEO Arne Freundt.

“Combined with decisive actions already taken, we will implement further cost control measures in 2025.”

The company reported an operating result (EBIT) of 622 million euros for the full year, remaining flat year-on-year. However, net income came in lower at 282 million euros, down from 305 million euros in 2023, primarily due to increased net interest expenses and higher non-controlling interests.

In response to its financial performance, PUMA unveiled a new cost-efficiency program, “nextlevel,” which aims to achieve an EBIT margin of 8.5% by 2027.

The program is expected to improve PUMA’s underlying operating results starting in 2025, with the long-term goal of reaching a 10% EBIT margin.

This program is part of PUMA’s strategic efforts to streamline operations and improve profitability over the next few years.

Price Action: PMMAF shares closed lower by 3.43% at $40.27 on Wednesday.

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