PUMA Posts Positive Financial Results in 2023, Forecasts "Tough" Times Ahead
Despite its growth, the German sportswear company is challenged by muted consumer sentiment, volatile demand and currency fluctuations.
On Tuesday, PUMA shared its 2023 financial report, revealing that its sales jumped by 6.6% in currency-adjusted terms to reach €8.6 billion EUR across the 12 months. However, despite the German sportswear company’s positive earnings in the period, the brand forecasts a “tough” year ahead.
“2023 was a success despite all the macroeconomic and environmental challenges and the geopolitical volatility we experienced,” said the company’s chief executive officer Arne Freundt, who was “optimistic” during the brand’s press conference, per WWD. “It was another year where we showed the market that Puma is the challenger, both in sports and sports culture.”
Overall, PUMA’s full-year report for last year was promising, but the company experienced a 4% decline in sales in the fourth quarter, noting decreases across nearly all of its product categories. Across markets, the label saw sales fall by 5.2% in Europe, the Middle East and Africa in the period; however, the regions still posted growth of 13.4% over the full year.
In the Americas, Q4 revenues were down by 6.4% in currency-adjusted terms over the three months, and for the full year, the company saw sales fall by 2.4%. PUMA stated that the Argentinian peso’s devaluation played a role in the decline, accounting for a difference of roughly €400 million EUR. In North America, specifically, PUMA’s sales dropped by 10.9%, which Freundt stated was due to the company’s “off-price business” in the region. “The U.S. remains a tough market for us and it will remain tough going into 2024,” he added.
As the brand continues to face “muted consumer sentiment and volatile demand” brought on by currency fluctuations and slow economic growth, PUMA predicts that its 2024 EBIT (earnings before income and profit) will tally somewhere between €620 million EUR and €700 million EUR, with “mid-single-digits” growth. Notably, the company expects to see demand for sneakers and sportswear rise in the latter half of this year, as it plans to invest in its first global brand campaign in 10 years to incite growth.
See PUMA’s full financial report here.
