BERLIN – Sales at Puma were down 0.2 percent to 2.12 billion euros in the second quarter as consumers tightened their belts, prompting the German sportswear maker to lower its forecast for full-year operating profit.
Despite a slow start to the year, Puma racked up 4.22 billion in sales in the first half, an increase of 1.3 percent on a currency-adjusted basis.
“We fully delivered on our outlook for the quarter and are well on track to deliver on our outlook for the full year,” Puma chief executive Arne Freundt said in a statement. And this had come “in an environment of increased currency headwinds, stressed supply chains and macroeconomic and geopolitical challenges that are weighing on consumer sentiment around the world,” he pointed out.
Puma’s EBIT — earnings before interest and taxes, or operating profit — was up 1.6 percent in the second quarter to 117.2 million euros. Over the first six months of the year, EBIT fell 5.1 percent to 276.2 million euros.
“The first half of the year was characterized by a volatile environment with persistent currency headwinds, stressed supply chains and muted consumer sentiment globally,” the company said.
However “positive feedback from our retail partners and consumers” and a strong order book for the rest of the year meant that the company was sticking with most of its previous guidance for the full year.
Puma still expects sales to grow in the mid-single digits over the rest of the year but reduced its maximum forecast EBIT slightly. Instead of expecting EBIT to come in somewhere between 620 million euros and 700 million euros in 2024, it now projects it somewhere between 620 million euros and 670 million euros.
In Puma’s home market of Europe, the Middle East and Africa, or EMEA, organic sales fell 4.3 percent to 817.9 million euros in the second quarter. The company explained that this was due to tough year-on-year comparables in parts of the sales territory. In the first six months of 2024, EMEA sales were down 2.2 percent.
In the Americas — North America and Latin America — comparable sales rose 9 percent to 887.5 million euros. And in Asia Pacific, revenues were up 1.9 percent to 411.9 million euros.
In terms of product categories, Puma footwear sales were flat at 1.09 billion euros on a currency-adjusted basis in the second quarter. In reported terms, the category was down 2.6 percent. Apparel sales grew 9 percent to 705.6 million euros on a currency-adjusted basis, while accessory sales decreased 4.7 percent to 314.8 million euros.
