Puma launches efficiency program after 2024 net income declines
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Sports company Puma reported a currency adjusted sales growth of 9.8 percent or 15.5 percent reported to 2.3 billion euros in the fourth quarter, while full-year sales grew by 4.4 percent currency adjusted or 2.5 percent reported to 8.8 billion euros
In a preliminary results statement, the company said EBIT remained flat at 622 million euros and net income decreased to 282 million euros.
"While we achieved solid sales growth in 2024 and made meaningful progress on our strategic initiatives, we are not satisfied with our profitability,“ said Arne Freundt, CEO of Puma.
“With a heightened focus on translating top-line growth to increased profitability growth, we have initiated “nextlevel”, a comprehensive efficiency program targeting cost optimization and operational improvements”
Highlights of Puma’s Q4 results
The company’s all regions contributed to the sales growth in the fourth quarter, driven by a 6.9 percent growth in the wholesale business and 16.1 percent in direct-to-consumer.
The company added that when compared to the first nine months, EMEA achieved 14.3 percent increase, Europe 10.3 percent, Greater China 7.4 percent, other APAC 19 percent and North America 2.6 percent, while LATAM's sales growth was 7 percent.
Puma’s footwear business grew 9.2 percent and apparel was up 8.8 percent, while accessories increased by 14.5 percent.
Puma initiates “nextlevel” to drive profitability
The company further said that programme “nextlevel” has been initiated with the aim to achieve an EBIT margin of 8.5 percent by 2027 by optimizing direct and indirect costs, including personnel expenses through better resource allocation aligned with strategic growth areas.
In what remains a dynamic environment, the company will continue to make strategic investments in its brand to accelerate growth, complemented by the “nextlevel” programme that ensures an improvement of the underlying operating result starting in 2025.
In combination with the brand elevation strategy, Puma aims to achieve a 10 percent EBIT margin in the long-term.
Puma will publish its results for the financial year 2024 and 2025 outlook on March 12, 2025.
- Puma reported a 9.8 percent currency-adjusted sales growth in Q4 2024, reaching €2.3 billion, driven by strong performance across all regions and product categories.
- Despite sales growth, Puma's profitability remained flat, leading to the launch of the "nextlevel" efficiency program aimed at improving EBIT margin to 8.5 percent by 2027.
- The "nextlevel" program focuses on cost optimization and operational improvements to enhance profitability and support long-term growth, with a target of 10 percent EBIT margin in the long term.