German sports apparel and accessories brand Puma has reported net income of €282m ($293.83m) for the full year 2024 (FY24), which fell short of both the previous year's €305m and anticipated levels due to escalated net interest expenses and heightened non-controlling interests.
The operating result (EBIT, or earnings before interest and taxation) for the full year remained stable at €622m, meeting projections. EBIT margin stood at 7.1%.
The full-year turnover reflected a 4.4% currency-adjusted (ca) rise to €8.81bn, with a reported increase of 2.5%.
During 2024, all geographical sectors, product categories and distribution conduits surpassed the previous year's currency-adjusted sales figures.
This expansion was coupled with an enhancement in gross profit margin by 110 basis points, reaching 47.4%.
During its fourth quarter, sales were €2.28bn - a 15.5% increase on a reported basis from the preceding year.
The surge in quarterly sales was attributable to robust performance across all regions, with wholesale operations registering a 6.9% upswing and direct-to-consumer channels observing a 16.1% advancement.
The final quarter outperformed the initial nine months of 2024, with Eastern Europe, the Middle East and Africa (EEMEA) surging by 14.3%, Europe by 10.3% and Greater China by 7.4%.
Other Asia Pacific posted an impressive 19% growth, North America saw 2.6% and LATAM [Latin America] 7%.
Over the quarter, Puma's footwear segment experienced 9.2% growth, apparel rose 8.8% and accessories soared by 14.5%.
Puma has launched an extensive efficiency programme called nextlevel, aimed at cost reduction and operational enhancements to boost profitability growth.
This initiative is expected to yield an EBIT margin of 8.5% by 2027 through optimising direct and indirect costs, including personnel expenses via improved resource allocation that aligns with strategic growth objectives.
Despite navigating a volatile market landscape, Puma remains committed to strategic brand investments to propel growth while relying on the nextlevel programme to fortify its operating results starting in 2025.
In tandem with its brand elevation endeavours, Puma aspires to attain a long-term EBIT margin of 10%.
Puma CEO Arne Freundt stated: "While we achieved solid sales growth in 2024 and made meaningful progress on our strategic initiatives, we are not satisfied with our profitability.
“With a heightened focus on translating top-line growth to increased profitability growth, we have initiated nextlevel, a comprehensive efficiency programme targeting cost optimisation and operational improvements. While we continue to operate in a dynamic environment, we are encouraged by our improved growth throughout 2024 and expect 2025 to grow stronger than 2024.”
In December 2024 Puma selected Sitoo as its partner to enhance store operations worldwide, aiming to offer a consistent shopping experience to its customers.
