Puma forecasts challenges amid currency pressure

Puma faces challenges: German sportswear giant Puma anticipates a sluggish start to the first half of 2024 due to ongoing negative currency effects. Despite this, the company maintains its annual targets outlined earlier this year.

CEO Arne Freundt acknowledged the persistently challenging market environment as the company navigates through 2024.

In the fourth quarter of 2023, Puma saw a 6.4 per cent decline in currency-adjusted sales in the Americas, totalling 846 million euros ($918.5 million). The downturn was primarily attributed to the devaluation of the Argentine peso.

Conversely, revenue in the Asia-Pacific region surged by 2.8 per cent on a currency-adjusted basis to 468.3 million euros during the same quarter. The growth was fuelled by robust performance in Greater China and India.

However, Puma reported worse sales in other Asian regions, attributing it to elements like customer attitude and warmer weather.

Despite the challenges, Puma reaffirmed its 2024 outlook, projecting mid-single-digit percentage growth in currency-adjusted sales.

Additionally, the company aims for earnings before interest and tax ranging from 620 million to 700 million euros.

(With Reuters Inputs)