Puma Cuts Costs After Profit Falls Short in 2024
LONDON (Reuters) - Sportswear giant Puma has announced cost-cutting measures following a disappointing 2024 financial performance.
Net profits plunged to €282 million ($294 million) in contrast to €305 million in 2023.
"While we witnessed solid sales growth and strategic initiatives, our profitability fell short of expectations," acknowledged Puma CEO Arne Freundt.
Puma aims to boost its Earnings Before Interest and Tax (EBIT) margin to 8.5% by 2027 through cost reductions. The 2024 EBIT margin stood at 7.1%.
Q4 sales saw a 9.8% surge in currency-adjusted terms to €2.289 billion ($2.38 billion). For the entire year, sales grew 4.4% in comparable currency to €8.817 billion.
($1 = €0.9602)