Puma reported a 0.1% fall in sales to €2.31bn ($2.48bn) in Euro terms during Q3 with growth supported by all three regions, Americas, Asia Pacific and EMEA.
Puma reported sales grew currency-adjusted by 5.0% to €2.31bn, supported by growth in the Americas, Asia/Pacific and EMEA. Currencies continued to be a headwind, negatively impacting sales in euro terms by €100m in Q3 2024 (-0.1% reported growth rate).
Go deeper with GlobalData
Despite labelling Puma’s sales as “sluggish” in Q3 FY2024, GlobalData’s senior apparel analyst Pippa Stephens highlights how this is an improvement to the prior quarter when it rose 2.1% with the “easing of inflation in its core marker gradually boosting consumer’s inclination to spend.”
She was keen to add that Puma’s innovations and designs with celebrity partnerships help create “hype” around its products.
Arne Freundt, chief executive officer (CEO) of Puma commented: “I’m pleased with the progress on our brand elevation journey as we are building the foundation for accelerated and sustainable growth. We know this takes time, but we have made strong strides in enhancing our brand equity and desirability, stepping up our performance business, and building up consumer relevance in the Sportstyle Prime market.
Puma’s nine months results
The German sportswear brand’s sales grew the most in the Americas, during the year-to-date nine-month period where it saw 11.4% growth to €872m, fuelled mainly by the US and Latin America.
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By GlobalDataStephens says despite its buoyancy partly due to its facing the weakest comparatives in the prior year, consumers are more “appreciative of Puma’s performance credentials now their finances are in better order,” and it is being supported by the ramped-up warehouse operations in the region.
The Asia/Pacific region recorded sales growth of 3% to €430.4m, showing what Stephens describes as a testament to its desirability as many other fashion brands are experiencing downturns of softer consumer demand in Greater China.
In the EMEA region, sales increased by 0.8% to € 1bn, driven by continued growth in Europe. This was partially offset by a decline in Eastern Europe, the Middle East and Africa (EEMEA) due to muted consumer sentiment in the Middle East and a strong prior-year quarter.
Key highlights from Puma 9M
- Sales increased by 2.6% (ca) to € 6,527.8m, with currency headwinds hurting sales in euro terms (-1.4% reported),
- The operating result (EBIT) decreased by 2.7% to € 513.2m (9M 2023: € 527.2m),
- Net income decreased by 15.4% to € 257.1m.
Puma’s wholesale business improved by 1.5% in Q3 with a strong focus on sell-though in the first half of 2024 laying the foundation for a stronger sell-in in the second half of 2024.
The brand’s direct-to-consumer (DTC) business grew in line with the strong year-to-date trajectory by 17, reflecting the continued brand momentum. Sales in owned & operated retail stores increased 12.8% and e-commerce increased 26.4%.
After lagging behind in H1, footwear has become the brand’s highest growing category with sales increasing by 9.3% driven by growth in performance, led by football and running and in sport style, let by core and kids. Apparel sales dropped by 0.7% and accessories grew by 2.9%.
Stephens mentions how this was due to the versatility of these styles resonating with consumers as they focus on value for money.
“This category is likely to continue its momentum in Q4, with the commercial launch of A$AP Rocky’s Inhale trainers and the new campaign for Fenty x Puma featuring Romeo Beckham expected to help capture further consumer attention,” adds Stephens.
The improvement in growth this quarter drove Puma to confirm its outlook for the full year of mid-single-digit currency-adjusted sales growth, while also maintaining its expectations that operating profit will reach between €620m and 670m. The brand continues to expect net income to change in 2024 in line with the operating result.
