Puma, on the rise despite the fall in America. Sales of the German sports fashion giant grew by 6.6% in 2023, up to 8,602 million euros. Net profit decreased by 13.7% to 304.9 million euros.
Operating income (ebit) decreased by 3% to €621.6 million due to slightly higher operating expenses, partially offset by a favorable gross margin. As a result, the ebit margin increased by 7.2%.
The company’s main market is the Emea regionwith a turnover of 3,418.4 million euros, followed by America, with 3,389.9 million euros and Asia Pacific, with 1,793.4 million euros.
Growth was led by the Asia Pacific region, with an increase of 13.6%, closely followed by the Emea region, with an increase of 13.4%. However, turnover in the Americas region decreased by 2.4%, due in part to the devaluation of the Argentine peso. The Puma group had a negative impact on currency conversion of more than 400 million euros.
The wholesale business registered an increase of 3.5% to 6,468.7 million euros and direct sales to consumers increased by 17.5% to 2,133 million euros. Sales at owned retail stores rose 18.8% and e-commerce grew 15%.
Puma grows 18.8% in its own stores channel and 15% in the online channel
In categories, footwear continued to lead growth, with an increase of 12.4%followed by accessories, with a growth of 3.1%, while the fashion division remained stable.
Operating expenses (opex) increased by 3.3%, to 3,403.5 million euros. The increase was driven by sales-related distribution and other variable costs, DTC channel growth and continued investment in marketing, which was partially offset by operating leverage in other cost areas due to strict cost discipline.
LThe company expects to achieve a sales figure of between 620 and 700 million euros in 2024 in the total for the year, and to achieve this it has begun to lay the foundations for growth based on strengthening the brand and improving distribution.
“Today we are in a better position than at the beginning of 2023: we established a new marketing organization and began to execute our new marketing strategy to elevate the brand,” said Arne Freundt, CEO of Puma.
Looking ahead to 2024, the company will work with its retail partners “with a clear focus on direct sales and prudent sales, especially in the US and Europe, where we expect a softer first half of the year,” said Freundt.
2024-02-27 16:59:16
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