The Herzogenaurach-based sporting goods manufacturer Puma accelerated its sales growth in the third quarter. Adjusted for currency effects, sales rose by 5.0% in the period mentioned and recorded growth in all three regions of America, Asia/Pacific and EMEA. In the American region in particular, sales increased currency-adjusted by 11.4% to EUR 872.2 million; both the USA and Latin America contributed to this result. The Asia/Pacific region increased by 3.0% to 430.4 million euros, while the EMEA region recorded sales growth of 0.8% to 1,000.5 million euros. According to the manufacturer, due to the negative currency effects, this reduced sales revenue by around 100 million euros.
In the third quarter, Puma achieved a gross profit margin of 47.9% (+80 basis points), which, according to the manufacturer, was due to a more favorable product mix as well as lower freight and procurement costs. Operating expenses (OPEX) increased by 1.1% to EUR 873.4 million and were mainly due to growth in the DTC area and investments in digital infrastructure. EBIT increased by 0.3% to EUR 237.0 million, with an EBIT margin of 10.3%. However, the consolidated result fell by 3.0% to 127.8 million euros, and earnings per share amounted to 0.86 euros, compared to 0.88% in the previous year. The financial result was -46.7 million euros, roughly at the same level as the previous year (-45.5 million euros in the third quarter of 2023).
Growth thanks to shoes and wholesale
Overall, the wholesale business returned to growth: adjusted for currency effects, sales rose by 1.5% to EUR 1,728.2 million. The strong focus on sell-through in the first half of 2024 lays the foundation for stronger pure sales in the second half of 2024, according to the manufacturer. The DTC area grew by 17.0% on a currency-adjusted basis to EUR 580.0 million, the company’s own retail stores grew by 12.8% and the e-commerce division by 26.4%. This brings the direct-to-consumer share to 25.1%.
In the shoe sector in particular, currency-adjusted sales rose by 9.3% to 1,240.3 million euros. This development is driven by growth in the Performance categories, led by Football and Running, and Sportstyle, led by Core and Kids. The accessories and textiles areas recorded growth of 2.9% and 0.7% respectively, resulting in sales of EUR 304.2 million and EUR 763.6 million.
This is how the year has gone so far
Puma recorded a currency-adjusted increase in sales of 2.6% to 6.53 billion euros in the reporting period from January to September 2024. The main growth driver was the Americas region with an increase of 7.2%, followed by Asia/Pacific (+1.8%), while the EMEA region recorded a slight decline of 1.1%. The direct-to-consumer business grew by 16.8% on a currency-adjusted basis to €1.662 billion, particularly due to growth in e-commerce (+20.7%) and stationary retail (+14.8%).
The gross profit margin increased by 130 basis points to 47.4%, while EBIT fell by 2.7% to EUR 513.2 million due to higher operating expenses and currency effects. The financial result deteriorated, causing the consolidated result to fall by 15.4% to 257.1 million euros, with earnings per share of 1.72 euros.
That’s what CEO Arne Freundt says
In the course of the quarterly report, Puma CEO Arne Freundt also commented on the company’s development: “I am pleased that we have made further progress in strengthening our brand, because in doing so we are laying the foundation for faster and sustainable growth. Although it takes time, we are well on our way to increasing brand equity and desirability, improving our performance business and becoming more relevant in the Sportstyle Prime market. Our new go-to-market strategy for the Speedcat is successful and I’m looking forward to the Speedcat’s market launch in a few weeks. I am also pleased that our wholesale business is back on track for growth. With better revenue growth in the third quarter, EBIT in line with expectations and a strong backlog for the fourth quarter, we are well on track to achieve our full-year outlook. A special thank you goes to the entire Puma family and our partners for their great commitment.
I look forward to writing Puma’s next chapter of growth together with our executive team, where we recently welcomed Markus as our new CFO.”
