The German sportswear brand, PUMA, have announced a cost-cutting programme after announcing a slightly lower net profit for 2024 which failed to meet expectations.
PUMA announced a cost-cutting programme yesterday after reporting a net profit below expectations with stock prices of the brand (PUMA SE) taking a tumble of 15%. Net profit for 2024 for the German sportswear brand was down to €282 million compared to €305 million from the previous year with higher interest rates on their current debt blamed on the lower than expected fiscal results. PUMA’s cost cutting programme aims to get PUMA back to an earnings before interest and tax (EBIT) margin of 8.5% by 2027 with a long term of goal of 10% EBIT margin. The EBIT margin for 2024 was 7.1%.
For the key holiday/Xmas period of Q4 2024 sales were up by 9.8% to €2.289 billion with footwear leading the surge across Europe thanks to the latest footwear trends of OG suede classics like the Palermo & stream lined silhouettes like the Speed Cat. PUMA also stated there had been a strong improvement in their wholesale business, which was up 6.9% for the quarter. DTC (direct to consumer) was also up by 16%. Overall for 2024 sales were up by 4.4% to €8.817 billion for the German sportswear brand.
While we achieved solid sales growth in 2024 and made meaningful progress on our strategic initiatives, we are not satisfied with our profitability. Combined with decisive actions already taken, we will implement further cost control measures in 2025. 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.
Arne Freundt – CEO PUMA
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