Puma’s working revenue was 236.3 million euros ($252.3 million) for the third quarter, down from 257.7 million a yr earlier. Nonetheless, the corporate confirmed its goal for annual working revenue between 590 million and 670 million euros.
Puma stated it nonetheless anticipated “robust enchancment in profitability” within the fourth quarter helped by decrease advertising, sourcing and freight prices, regardless of a depressing backdrop for client demand. Shares in Puma have been anticipated to rise round 3%.
“Whereas the market continues to expertise important macroeconomic headwinds and 2023 stays a transition yr, we outgrew the market,” Puma CEO Arne Freundt stated in an announcement.
Foreign money results had a unfavorable influence on gross sales in euro phrases, Puma stated. The euro was a lot stronger over the third quarter in comparison with the identical interval final yr, impacting the interpretation of greenback gross sales into Puma’s dwelling forex.
Puma, which makes most of its revenues by promoting by means of multi-brand retailers, stated its wholesale enterprise elevated by 3.1% in currency-adjusted phrases, whereas gross sales from its personal shops and web sites grew by 17.4%.
Puma had taken shelf area from Adidas and Nike when these two manufacturers have been pulling again from the wholesale channel to concentrate on their very own shops, UBS analyst Zuzanna Pusz stated, however now that the 2 larger corporations have been turning their focus again onto wholesale, competitors was extra intense. “Puma is a superb firm, however I am simply conscious of the actual fact the trade dynamics are altering for them,” she stated.
As retailers search to get well from a listing glut, Puma stated its inventories fell by 20.3% in comparison with their degree on Sept. 30 final yr.
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