Puma, the sports clothing company, lifted around 3% on Tuesday after it reiterated its full-year guidance despite sales dropping by close to 2% on a reported basis, the group’s third-quarter results revealed.
Sales during the third quarter fell to €2.31 billion from €2.35 billion a year prior, with underlying earnings (EBIT) slipping from €258 million in 2022 to €236 million in 2023.
Despite the slowing of sales and earnings, largely caused by a dwindling of profit margins and volatile consumer demand, the German retailer remains confident it can deliver double-digit revenue growth and EBIT of between €590 million and €670 million for the full financial year.
During 2023, Puma has collaborated with various artists including Rihanna and her Fenty beauty brand, footballers Neymar Jr and Kai Havertz as well as signing rapper Asap Rocky as a creative director for an upcomoing project with F1.
Going forward into the fourth quarter, Puma reckons it can drive a “strong improvement in profitability” helped by margin improvements on the back of lower sourcing, freight and marketing costs.
Arne Freundt, chief executive officer of Puma, said: “While the market continues to experience significant macroeconomic headwinds and 2023 remains a transition year, we outgrew the market with a currency adjusted sales growth of 6% and delivered an EBIT of €236 million – both fully in line with expectations. We once again demonstrated our sustained brand momentum and gained market share.
“In the remainder of the year, we will deliver a lot of exciting product newness to the market… Our strong partnerships with our retailers, athletes and suppliers, supported by the fastest and most agile team in the industry, were again crucial for our success."