Puma’s financial performance in the first half of 2024 reveals challenges amidst a volatile global environment.
- The sportswear brand witnessed a 2.1% decrease in sales, bringing the total to €4.2 billion.
- Net income dropped significantly by 25%, amounting to €129.3 million.
- Despite currency challenges, the company maintains optimistic projections for the latter half of the year.
- Puma continues to focus on strategic growth in the US and China, aiming for brand and product excellence.
Puma’s first half of 2024 marked a challenging period as sales declined by 2.1%, reaching €4.2 billion. This reduction led to a revision of its yearly financial outlook.
The company’s profit margins were notably affected, with net income plummeting by 25% to €129.3 million for the first six months. This was accompanied by a 5.1% reduction in EBIT, primarily due to adverse currency impacts.
Looking ahead, Puma has adjusted its full-year EBIT expectations to between €620 million and €670 million, reducing the upper limit from €700 million.
The second quarter showed mixed results. While operating profit (EBIT) increased slightly by 1.6% to €117 million, net income decreased by 23.8% to €41.9 million.
According to CEO Arne Freundt, the company met its operational targets for the second quarter, overcoming hurdles such as currency fluctuations, supply chain pressures, and global economic uncertainties.
Puma’s strategic initiatives involve enhancing its brand presence and product quality, concentrating efforts in significant markets like the United States and China.
Pippa Stephens from GlobalData remarked on the overall sluggish performance of the sportswear market, highlighting Puma’s struggles amidst macroeconomic challenges.
Acknowledging these obstacles, Puma has made progress in strategic areas, maintaining strong partnerships with retailers and brand ambassadors.
Puma remains committed to overcoming current challenges and achieving growth through strategic initiatives.
