The Brand Reported a Small Downturn in Q3 Sales, Remains Optimistic about Brand Growth
Puma recently confirmed a marginal decline of 0.1 percent in its Q3 sales, which amounted to 2.31 billion euros. However, when compensating for currency effects, the company’s sales witnessed a 5 percent rise.
“I’m pleased with the progress on our brand elevation journey,” stated Puma’s chief executive, Arne Freundt. He added, “We are building the foundation for accelerated and sustainable growth.”
Despite the company’s optimism, the reported revenue fell slightly short of the analysts’ forecast of 2.36 billion euros for Q3. This marks the second consecutive quarter that Puma’s results have not met consensus expectations.
Nevertheless, over the past nine months, Puma records a 2.6 percent growth on a currency-neutral basis.
Between July and September, the German sportswear giant experienced substantial growth of 11.4 percent in the Americas, driven by both the U.S. and Latin America.
On the other hand, Puma’s performance in its home market, Europe, was relatively stagnant, observing a mere 0.8 percent increase in sales. Despite softened consumer demand in Greater China, sales in the Asia-Pacific region posted a 3 percent rise.
Q3 Footwear sales, representing Puma’s most significant segment, escalated to 9.3 percent, predominantly propelled by the performance category. Accessories sales also experienced a rise of 2.9 percent. However, Apparel sales declined by 0.7 percent in Q3.
The earnings before interest and taxes for the quarter registered a slight growth of 0.3 percent, bringing the figure to 237 million euros.
In light of the Q3 results, Puma reiterated its guidance for the full financial year, maintaining the expectation for mid-single-digit growth. The company had previously adjusted its EBIT forecast for Q2 marginally, and reaffirmed its expectation of achieving an EBIT of between 620 million and 670 million euros by the end of 2024.