Puma Remains Optimistic about 2023 Guidance
Puma stays optimistic about its 2023 guidance despite a decrease in earnings and sales during the third quarter. The company focuses on addressing challenges and driving growth.
Puma, the leading German sporting-goods company, has expressed confidence in its 2023 guidance, even though its third-quarter earnings took a hit primarily due to currency effects. Despite this setback, Puma remains steadfast in its commitment to achieve its long-term goals.
During the third quarter, Puma recorded a net profit of €131.7 million ($140.5 million), down from €146.4 million in the same period last year. Additionally, sales declined by 1.8% to reach €2.31 billion. The negative impact of currency fluctuations was the main factor contributing to the 8.3% decrease in earnings before interest and taxes (EBIT), which amounted to €236.3 million.
Puma experienced the most significant decline in sales within the Americas during the quarter, registering an 8.3% decrease to €854.6 million. This decline can be attributed to macroeconomic challenges faced in the region. On a positive note, Europe witnessed the highest reported sales growth, increasing by 5%.
Among its various product categories, Puma observed the largest reported sales decrease in apparel during the quarter, with a significant drop of 7.1%. Despite this decline, Puma remains focused on addressing the challenges and finding innovative strategies to revive apparel sales.
Puma reaffirmed its confidence in achieving its 2023 guidance, which includes currency-adjusted sales growth in the high single-digit percent range. The company also maintains its guidance for an operating result between €590 million and €670 million.
As Puma perseveres through these challenges, it remains committed to driving growth and delivering exceptional products to its valued customers.