Puma narrows EBIT forecast for fiscal 2024

Second quarter currency-adjusted sales at Puma increased by 2.1 percent but declined 0.2 percent reported to 2.1 billion euros.

For fiscal year 2024, the company confirms sales growth at mid-single-digit percentage rate.

Considering the impact of external factors such as higher freight costs, changing duties and continued muted consumer sentiment, especially in China, Puma has lowered expected EBIT range to 620 million euros to 670 million euros and expects net income to change in line with the operating result.

Commenting on the trading update, Arne Freundt, chief executive officer of Puma SE said in a release: “With our second quarter operating performance, we fully delivered on our outlook for the quarter and are well on track to deliver on our outlook for the full year. With regard to our strong order book for the second half of the year, we reiterate our sales growth outlook in the mid-single-digit range and are narrowing our full-year EBIT outlook range.”

Highlights of Puma’s Q2 results

Puma’s sales in the Americas region increased by 9 percent to 887.5 million euros, with both the US and LATAM contributing to the growth and showing a sequential improvement.

The Asia/Pacific region recorded sales growth of 1.9 percent to 411.9 million euros, driven by continued growth in Greater China and improvement in the rest of APAC.

In the EMEA region, sales decreased by 4.3 percent to 817.9 million euros due to a decline in EEMEA, while Europe returned to growth.

The company said wholesale business declined by 3.3 percent to 1,529.6 million euros, due to the decline in EEMEA. In all other regions, the wholesale business improved quarter-on-quarter, driven by continued good sell-through and improved inventory levels in the trade. DTC business grew by 19.5 percent to 587.7 million euros.

Sales in the company-owned & operated retail stores increased 16.5 percent and e-commerce increased 25.6 percent.

Sales in footwear remained flat at 1,097 million euros, sales in apparel grew by 9.2 percent to 705.6 million euros, while sales in accessories declined by 4.7 percent to 314.8 million euros.

Gross profit margin for the quarter improved by 200 basis points to 46.8 percent, EBIT increased by 1.6 percent to 117.2 million euros and net income decreased by 23.8 percent to 41.9 million euros and earnings per share amounted to 0.28 euros.

Review of Puma’s first half financial performance

Puma’s first half sales increased by 1.3 percent currency adjusted to 4.2 billion euros. In euro terms, sales declined by 2.1 percent or by approximately 150 million euros.

The company added that sales in the Americas region increased 5.1 percent to 1.7 billion euros, followed by the Asia/Pacific region with a sales increase of 1.2 percent to 868.5 million euros, while sales in the EMEA region declined by 2.2 percent to 1.7 billion euros.

Puma’s wholesale business declined by 3.1 percent to 3.1 billion euros while DTC business increased by 16.7 percent to 1.08 billion euros. Sales in the company-owned & operated retail stores increased 16 percent and e-commerce increased 18.1 percent.

Among product divisions, sales in footwear increased by 1.6 percent to 2.3 billion euros and apparel grew by 3.5 percent to 1.3 billion euros, while accessories decreased by 4 percent to 627.5 million euros.

The gross profit margin increased by 150 basis points to 47.2 percent, EBIT decreased by 5.1 percent to 276.2 million euros and net income decreased by 25 percent to 129.3 million euros and earnings per share dropped to 0.86 euros.