By Helen Reid
LONDON (Reuters) – Sportswear model Puma (OTC:) introduced a cost-cutting programme on Wednesday after reporting 2024 internet revenue beneath the prior yr’s stage, lacking its expectations.
Web revenue was 282 million euros ($294 million) for the yr, in comparison with 305 million euros in 2023, Puma mentioned in preliminary outcomes launched after markets closed.
“Whereas we achieved stable gross sales development in 2024 and made significant progress on our strategic initiatives, we aren’t happy with our profitability,” mentioned Arne Freundt, CEO of PUMA, with out saying what its expectations had been.
Freundt added that he expects stronger development in 2025 than final yr.
The associated fee-cutting programme goals to get Puma again to an earnings earlier than curiosity and tax (EBIT) margin of 8.5% by 2027. Puma goals for a ten% EBIT margin in the long run. The EBIT margin for 2024 was 7.1%.
Puma mentioned the programme would search for financial savings in areas like personnel bills, however a spokesperson mentioned Puma goals to maintain its headcount secure and has no world goal for layoffs.
“We’ll make sure that we allocate assets the place we want them to drive our development,” the spokesperson mentioned in an e mail.
For the fourth quarter, a key purchasing interval, Puma’s gross sales grew by 9.8% in currency-adjusted phrases, to 2.289 billion euros ($2.38 billion).
Over 2024 as a complete, gross sales had been up by 4.4% in currency-adjusted phrases, to eight.817 billion euros.
Puma’s fourth-quarter gross sales grew by 14.3% in Europe, Center East and Africa area, and seven.4% in Larger China. Gross sales of footwear, Puma’s largest class, had been up 9.2% over the quarter whereas attire gross sales grew by 8.8%.
($1 = 0.9602 euros)
