Herzogenaurach, August 28, 2024 – Sports company PUMA has appointed Indrajeet Sen (38) as Senior Vice President PUMA Group Sourcing, taking over the operational responsibilities of the Chief Sourcing Officer role. PUMA’s Chief Sourcing Officer Anne-Laure Descours has decided not to extend her board contract and support the company as an external advisor in the field of sustainability.

In his new position, Indy will oversee the global sourcing and development of footwear, apparel, and accessories, as well as operations and sustainability, reporting directly to PUMA Chief Product Officer Maria Valdes. He will be based in Xiamen, China. Indy has been with PUMA since 2016, most recently working as Vice President of Sourcing and Development Footwear. Before joining PUMA, he worked as Global Quality Manager for German footwear retailer Deichmann.

“Indy has been instrumental to our success in Footwear,” said Arne Freundt, CEO of PUMA. “He has excelled in various key roles such as adeptly managing the challenges of the COVID pandemic, diversifying our supply chain, and driving exceptional operational efficiency. Indy’s forward-thinking approach, people-first mindset, and relentless dedication of continuously challenging the status quo make him the ideal leader to spearhead our next phase of growth. I would like to thank Anne-Laure for her outstanding contributions she has made to PUMA’s business over the past years, especially when it comes to successfully establishing and executing PUMA’s sustainability strategy, which earned PUMA international recognition and awards in this space. I look forward to continuing to work with her as our external advisor in the field of sustainability”

Anne-Laure Descours has decided after more than 12 years with PUMA that she will not extend her services as a Board Member of PUMA SE. After more than 35 years in the industry, she intends to dedicate more time to her personal interests and continue her professional focus in the fields of sustainability. In this capacity, she will continue to support PUMA as external advisor and sustainability consultant to ensure continuity and a seamless transition.

With Anne-Laure’s departure at the end of 2024, the number of members of the management board will be reduced from four to three. The board will consist of Arne Freundt, CEO, Hubert Hinterseher, Chief Financial Officer and Maria Valdes, Chief Product Officer. 

The FT awarded the best scores to businesses which achieved the greatest reduction in their direct greenhouse gas emissions and indirect emissions from purchased energy (Scope 1 and 2). It gave more points to those companies which also reported on their indirect emissions from the supply chain (Scope 3) and which worked with external organisations such as CDP and the Science Based Targets Initiative.

“We are humbled to be recognized in this prestigious ranking and I want to thank our team of experts for the hard work they put in around the world to make this possible”, said Anne-Laure Descours, Chief Sourcing Officer at PUMA. “There is still a long way ahead of us in reducing our emissions, especially in the supply chain, where most of our greenhouse gas emissions occur. This will require a concerted effort by all stakeholders.”

PUMA has been included on the Europe’s Climate Leaders ranking since its inception in 2021, but this year, PUMA climbed to its best position of eighth place among all companies analysed.

In 2023, PUMA achieved its prior climate goals seven years early and established new greenhouse gas reduction targets, which were approved by the Science-Based Target initiative (SBTi). By 2030, PUMA aims to lower its Scope 1 and 2 greenhouse gas emissions by 90% and its Scope 3 emissions by 33% from a 2017 baseline.

PUMA was able to make significant progress in reducing its greenhouse gas emissions as its core suppliers doubled their use of renewable energy in 2023 compared to the previous year and the company increasingly used materials with a smaller carbon footprint in its products. PUMA also made use of low carbon shipment tariffs as well as renewable electricity or renewable energy certificates at its own operations and it invested in electric vehicles in its car fleet.

Johan, who has been with PUMA since 2015, has held various positions in the company including Head of Corporate Strategy and Investor Relations. Most recently, he worked as Managing Director EEMEA Distribution, where he oversaw more than 40 Markets in Eastern Europe, the Middle East and Africa

Taner Seyis (47), who was previously in charge of PUMA Middle East, including the GCC countries, will now lead the newly founded area Turkey & Levant. This area includes Turkey, Azerbaijan, Jordan, Lebanon and Iraq. Taner, who has worked for PUMA for nine years, will continue to report to CEO Arne Freundt.

“Given our strong growth trajectory and growth ambition in the Middle East, we decided to realign the territories and management responsibilities to ensure we have sufficient focus and resources to realize the potential in each market and provide the best service to our retail partners,” said PUMA CEO Arne Freundt. “Johan has shown an impressive track record, rapidly growing our business in EEMEA Distribution while strengthening our brand, operations and strategy. Taner has built up our credibility in the Middle East with successful new partnerships and established a strong foundation, so I’m confident, we have the right people in place to elevate our brand in these important regions.”

Peter Dangl (37) will become Director EEMEA Distribution and succeed Johan Kuhlo. Peter has been with PUMA for 15 years and previously worked as Head of Product Line Management Sportstyle Apparel before becoming Director Sales EEMEA Distribution. 
 

Key developments Q2 2024

• Currency-adjusted (ca) sales increase by 2.1% to € 2,117 million, reflecting a negative currency impact of approximately € 50 million (-0.2% reported)
• Gross profit margin improves by 200 basis points to 46.8% despite major currency headwinds
• Operating expenses (OPEX) increase by 4.3% to € 879 million
• Operating result (EBIT) up by 1.6% to € 117 million despite negative currency effects on sales, gross profit margin and OPEX ratio
• 2024 Sales growth outlook confirmed and EBIT band narrowed within initial range: currency-adjusted sales growth at mid-single-digit percentage rate and EBIT in a range between € 620 million and € 670 million

Second Quarter 2024

Sales grew by 2.1% (ca) to € 2,117.3 million, while currencies continued to be a headwind, negatively impacting sales in euro terms by approximately € 50 million in Q2 2024 (-0.2% reported).

Sales in the Americas region increased by 9.0% (ca) to € 887.5 million, with both the U.S. and LATAM contributing to the growth and showing a sequential improvement. The Asia/Pacific region recorded sales growth of 1.9% (ca) to € 411.9 million, driven by continued growth in Greater China and sequential improvement in the rest of APAC. In the EMEA region, sales decreased by 4.3% (ca) to € 817.9 million due to a decline in EEMEA from a strong prior year quarter (EEMEA grew +111% ca in Q2 2023), while Europe returned to growth.

PUMA's Wholesale business declined by 3.3% (ca) to € 1,529.6 million, due to the decline in EEMEA. In all other regions, the wholesale business improved quarter-on-quarter, driven by continued good sell-through and improved inventory levels in the trade. Our Direct-to-Consumer (DTC) business grew by 19.5% (ca) to € 587.7 million, supported by continued brand momentum and scaled back promotions. Sales in owned & operated retail stores increased 16.5% (ca) and e-commerce increased 25.6% (ca). This resulted in an increased DTC share of 27.8% (Q2 2023: 24.3%), in line with expectations.

Sales in Footwear were flat (ca) at € 1,097.0 million on the back of a strong prior year quarter (Q2 2023: +18.2% ca) with all Performance categories as well as Sportstyle Core performing very well. Sales in Apparel grew by 9.2% (ca) to € 705.6 million, while sales in Accessories declined by 4.7% (ca) to € 314.8 million.

The gross profit margin improved by 200 basis points to 46.8% (Q2 2023: 44.8%). Significant headwinds from currencies were more than offset by a favourable product and distribution channel mix as well as tailwinds from sourcing and freight.

Operating expenses (OPEX) increased by 4.3% to € 879.3 million (Q2 2023: € 843.4 million). The increase was primarily due to the continued growth of our DTC business and ramp-up costs of warehouse and digital infrastructure projects while all non-demand creating costs remained under strong control. In addition, currency-related headwinds weighed on the OPEX ratio, which increased by 180 basis points to 41.5% (Q2 2023: 39.8%).

The operating result (EBIT) increased by 1.6% to € 117.2 million (Q2 2023: € 115.3 million), despite negative currency effects on sales, gross profit margin and OPEX ratio. Consequently, the EBIT margin improved by 10 basis points to 5.5% (Q2 2023: 5.4%).

The financial result decreased to € -42.6 million (Q2 2023: € -23.0 million) due to higher currency related losses and a lower interest result.

Consequently, net income decreased by 23.8% to € 41.9 million (Q2 2023: € 55.0 million) and earnings per share amounted to € 0.28 (Q2 2023: € 0.37).

The development of the operating result and net income is fully in line with our expectations that the second half of the year, particularly in the fourth quarter, will be stronger than the first half, and that net income will improve in line with the operating result outlook for FY 2024.

First Half Year 2024

Sales increased by 1.3% (ca) to € 4,219.6 million. Currencies were a major headwind, negatively impacting sales in euro terms by approximately € 150 million in H1 2024 (-2.1% reported).

The Americas region led the growth with a sales increase of 5.1% (ca) to € 1,677.5 million, followed by the Asia/Pacific region with a sales increase of 1.2% (ca) to € 868.5 million, while sales in the EMEA region declined by 2.2% (ca) to € 1,673.7 million.

PUMA’s Wholesale business declined by 3.1% (ca) to € 3,137.7 million as a result of disciplined sell-in and focus on good sell-through in preparation for a stronger sell-in in H2 2024. Our Direct-to-Consumer (DTC) business increased by 16.7% (ca) to € 1,081.9 million. Sales in owned & operated retail stores increased 16.0% (ca) and e-commerce increased 18.1% (ca). This resulted in an increased DTC share of 25.6% (H1 2023: 22.8%).

Among product divisions, sales in Footwear increased by 1.6% (ca) to € 2,278.4 million and Apparel grew by 3.5% (ca) to € 1,313.7 million. Accessories decreased by 4.0% (ca) to € 627.5 million.

The gross profit margin increased by 150 basis points to 47.2% (H1 2023: 45.7%). Major headwinds from currencies were more than offset by a favourable product and distribution channel mix as well as tailwinds from sourcing and freight.

Operating expenses (OPEX) increased by 1.9% to € 1,724.6 million (H1 2023: € 1,691.7 million). The continued growth of our DTC business and ramp-up costs for infrastructure projects were the main drivers of this increase. As a result, the OPEX ratio was up 160 basis points to 40.9% (H1 2023: 39.3%), also impacted by currency headwinds.

The operating result (EBIT) decreased by 5.1% to € 276.2 million (H1 2023: € 290.9 million), mainly due to negative currency effects on sales, the gross profit margin and the OPEX ratio, which resulted in an EBIT margin of 6.5% (H1 2023: 6.8%).

The financial result decreased to € -69.4 million (H1 2023: € -30.8 million) due to a lower interest result and higher currency related losses.

Consequently, net income decreased by 25.0% to € 129.3 million (H1 2023: € 172.3 million) and earnings per share amounted to € 0.86 (H1 2023: € 1.15).

The development of the operating result and net income is fully in line with our expectations that the second half of the year, particularly in the fourth quarter, will be stronger than the first half, and that net income will improve in line with the operating result outlook for FY 2024.

Working Capital

The working capital decreased by 2.9% to € 1,643.7 million (30 June 2023: € 1,693.0 million). Inventories decreased by 8.6% to € 1,961.1 million (30 June 2023: € 2,145.9 million). The quarter-on-quarter increase mainly reflects the stronger order book for the second half of the year. The Group's total inventory remains at a healthy level, while quality has further improved. Trade receivables increased by 3.4% to € 1,394.7 million (30 June 2023: € 1,348.4 million). On the liabilities side, trade payables increased by 13.1% to € 1,647.9 million (30 June 2023: € 1,457.3 million).

Cash Flow and Liquidity Situation

The free cash flow was at € -204.4 million in the first half of 2024 (H1 2023: € -341.4 million). As of 30 June 2024, PUMA had cash and cash equivalents of € 271.8 million (30 June 2023: € 307.9 million). In addition, the PUMA Group had available credit lines totalling € 1,411.7 million as of 30 June 2024 (30 June 2023: € 1,592.5 million). Unutilized credit lines amounted to € 595.4 million as of 30 June 2024 (30 June 2023: € 846.0 million).

Share Buyback

The share buyback programme announced by PUMA SE on 29 February 2024 began on 07 March 2024. By 30 June 2024, a total of 700,413 shares had been bought back for around € 31.3 million.

Outlook 2024

The first half of the year was characterized by a volatile environment with persistent currency headwinds, stressed supply chains and muted consumer sentiment globally. In this challenging environment, PUMA continued to make progress on its strategic initiatives of brand elevation, product excellence and distribution quality with special focus on the U.S. and China, and focused on strong sell-through and the best possible service to its retail partners, brand ambassadors and consumers.

Based on the results of the first half year and supported by building brand momentum as well as by our strong orderbook for the second half of the year, PUMA reiterates its outlook for the financial year 2024 of mid-single-digit currency-adjusted sales growth. Taking into account the external factors of higher freight costs, changing duties and continued muted consumer sentiment, especially in China, we narrow our outlook for the operating result (EBIT) to a range of € 620 million to € 670 million (2023: € 621.6 million; previous outlook: € 620 – 700 million). We expect net income (2023: € 304.9 million) to change in 2024 in line with the operating result.

As in previous years, PUMA will continue to focus on managing short-term challenges without compromising the brand's medium- and long-term momentum. Our sales growth and market share gains will take priority over short-term profitability. The very positive feedback from our retail partners and consumers on our 2024/2025 product line-up and go-to-market strategies gives us confidence for the medium and long term success and continued growth of PUMA.

Q2 Brand & Strategy Update

Making Progress in Brand Elevation

Launch of PUMA’s biggest Brand Campaign ever in April 2024

• Brand Campaign “See The Game Like We Do” demonstrates PUMA’s superpower Speed and establishes strong emotional connection between the consumer and PUMA brand mantra FOREVER.FASTER.
• PUMA dedicates brand campaign spin-offs to UEFA Euro 2024 and 2024 Copa America, featuring best-in-class Football Players, like Neymar Jr., Xavi Simons, Kai Havertz and Cody Gakpo
• Brand campaign created best ever PUMA brand visibility and improved brand consideration with consumers

World-class performance by PUMA’s sponsored teams and players underscores strong position in Football

• Great visibility at Euro 2024 with approx. 100 players wearing “fireglow” colourways of FUTURE, ULTRA and KING
• Manchester City wins Premier League fourth time in a row
• Borussia Dortmund reaches final of Champions League 23/24
• PUMA to be strongest brand in Bundesliga season 24/25 with sponsoring 6 teams
• AC Milan and French National Team star Theo Hernández joins PUMA

PUMA Athletes set three new world records in Track and Field

• Seven gold medals for PUMA athletes at European Athletics Championships in Rome
• High jumper Yaroslava Mahuchikh breaks 37-year-old world record, clearing 2.10m
• Armand “Mondo” Duplantis sets new pole vault world record of 6.25m
• Devynne Charlton breaks 60m hurdles world record in 7.65s
• In PUMA NITROTM shoes, runners take podiums at marathon majors for first time in decades
• PUMA to provide kits for 17 track & field federations at the Olympic Games and 7 federations at the Paralympic Games in Paris
• PUMA joins forces with the Athletic Federation of India as Official Kit Partner

Further Improvement of Brand Visibility and Recognition

• Renowned K-Pop artist Rosé joins PUMA as global brand ambassador to support classic franchises, including the Palermo and Speedcat
• Eye-catching “fireglow” colours of the football boots and track and field spikes worn by more than 450 of our players and athletes create great visibility in Paris

Rebounding in China

Building up performance credibility with Chinese consumers

• PUMA sponsors Xiamen Diamond League for second year in a row to strengthen position as an international sports brand
• PUMA becomes Top 10 Brand at Wuxi Marathon, one of the world’s largest
• China tour of PUMA ambassador and NBA-Star Scoot Henderson captures basketball excitement in the country

Driving Brand Heat

• Announcement of PUMA x Rosé collaboration generates the biggest social media stir of PUMA in China in the past years and improves brand consideration
• PUMA captures hype around F1 GP in China with visit by Chinese driver Zhou Guanyu to pop-up space and livestreamed catwalk show on Tmall and Tencent with millions of views
• Singer and songwriter Henry Lau joins PUMA Family and stars in successful Forever.Dance. campaign

Business Highlights in a challenging Environment

• PUMA’s growing brand momentum in China confirmed by strong sales growth at online shopping festival 6/18, where sales exceed industry average on Tmall and JD
• Locally designed apparel collections with local fitting and design details, featured by Henry Lau, resonates well with consumers
• Palermo and Speedcat become bestselling franchises with immediate sell-out of initial Speedcat launch
• New footwear-focused store concept “Sneaker Box” opens in Shanghai, featuring elevated store design and consumer experience in line with brand elevation strategy
• PUMA continues to roll out “Field of Play” store format designed and developed in China

Winning in the USA

Building performance credibility with US customer

• PUMA enjoys great visibility as official partner of CONMEBOL Copa America 2024
• Neymar Jr. and Christian Pulisic host PUMA events to create buzz for Copa America
• Fiona O’Keeffe and Dakotah Lindwurm secure first and third place at US Olympic Marathon Trials in NITROTM running technology
• All-Pro NITROTM becomes shoe of leading amateur basketball circuit NXTPro Hoops
• Exclusive Ferrari collection at Miami GP sells out immediately

Launching US-first product propositions

• Rihanna continues to drive brand heat with new Back-To-School editions of Creeper and Avanti
• A$AP Rocky presents Inhale sneaker, a sell-out success
• PUMA announces collaboration with trailblazing footwear designer Salehe Bembury to reimagine signature shoe category in basketball

Investing for future growth

• Tara McRae joins PUMA North America as Senior Vice President Marketing & Brand Strategy from Clark’s
• PUMA announces to open its LA Studio in Q1/25, a new product and design hub in Los Angeles that will design products specifically for the US market
• PUMA opens new distribution centre in Arizona to support future growth in US from an operational point of view

Ongoing Momentum in Performance

Continued market share gains in Football

• Next-gen football boot FUTURE 7, featured by Neymar Jr. and Kai Havertz, gives players new level of freedom of movement
• ULTRA football shoe launched with new high-performance outsole design, generating strong sell-through
• Gripping performances of PUMA-Teams Austria and Switzerland lead to sell-out success of jerseys
• Fan shirt campaign with German comparison platform Check24 generates outstanding visibility during summer of sports

Driving further Momentum in Running & Training

• Third iteration of award-winning running shoe Deviate NITROTM is engineered with even more NITRO™ foam to deliver supreme cushioning and responsiveness
• Recognition by Running Experts: Ultimate race-day running shoe Fast-R2 awarded Spanish CORREDOR Award for the best new shoe 2024
• Announcement of global partnership with HYROX - the world series of fitness racing – which continues to build up great hype momentum as a fitness trend

Introducing innovative product newness in Basketball and Golf

• Following success of MB signature shoes, LaMelo Ball presents LaFrancé, his first lifestyle shoe
• Launch of third signature performance shoe for WNBA Player Breanna Stewart - the Stewie 3 - incorporates PUMA’s latest performance technology
• Designed by aerospace engineers, Cobra’s new DARKSPEED driver series are built for extraordinary speed and distance

Building Up Traction with Sportstyle Newness

Maximise current trends

• PUMA’s terrace model Palermo and skate model Suede XL continue to resonate well with target group
• With Easy Rider, PUMA brings back retro running style with sought-after T-toe style for a new generation
• Launch of communication platform Rewrite the Classics to highlight and raise awareness for PUMA’s classics franchises

Creating next trends

• Successful launches of Mostro and Speedcat confirm emerging low-profile trend
• PUMA demonstrates fashion appeal of low-profile styles during Paris Fashion Week in runway shows with A$AP Rocky, KidSuper and other influential designers
• British rapper Skepta joins PUMA to create sell-out Skope Forever sneaker and football inspired Más Tiempo collection
• PUMA and best-selling anime series One Piece present successful collection

Strengthening the Foundation

• Harsh Saini and Roland Krüger join PUMA’s Supervisory Board
• TIME magazine ranks PUMA as only company in its industry among “World’s Most Sustainable Companies”

The report evaluated what brands publicly self-disclose about their decarbonization efforts in their own operations and supply chain. Fashion Revolution awarded scores across five sections including accountability, decarbonization, energy procurement, financing decarbonization as well as just transition and advocacy. 

PUMA received an overall score of 75%, making it the company with the highest overall score. The report warns that the fashion industry as a whole is lagging significantly in achieving climate targets and reducing emissions.

“While we feel honoured that Fashion Revolution has ranked us as the best performer among the companies it examined, we know there is still a lot of work to do in our decarbonization journey,” said Anne-Laure Descours, Chief Sourcing Officer at PUMA. “We believe that the report should also be seen as a wakeup call. Much more needs to be done to get all stakeholders to work together to descarbonize our industry and our supply chains. We need to come together to find the solutions needed to achieve our climate goals.”

In 2023, PUMA set itself new greenhouse gas reduction targets, which were approved by the Science Based Targets Initiative (SBTi), after the company had reached its previous goals seven years ahead of schedule. By 2030, PUMA seeks to cut its absolute Scope 1 and 2 greenhouse gas emissions by 90% from a 2017 baseline year and also committed to reduce absolute Scope 3 greenhouse gas emissions from its supply chain and logistics by 33% compared to 2017. 

For more information, please visit www.foreverbetter.com 

The upscaling builds on the 46,000 RE:FIBRE jerseys produced in 2023 and seeks to not only reduce textile waste, but also to create less reliance on plastic bottles to produce recycled polyester products. To make the upscaling possible, PUMA is exploring diversified ways to recycle polyester – such as thermo-mechanical and chemical recycling techniques enabling PUMA to significantly increase its capacity to recycle textile waste.

“RE:FIBRE gives football fans a tangible example of how PUMA is working towards creating a Forever Better,” said Anne-Laure Descours, Chief Sourcing Officer at PUMA. “Our wish is to have 100% of our polyester products created from textile waste. Rethinking how we produce and moving towards a more circular business model is important and RE: FIBRE is central to that.”
 

To celebrate this milestone, PUMA will hold a weekend of activities in the New York flagship store, timed to coincide with the launch of the AC Milan and Manchester City home replica kits and ahead of the two PUMA football teams playing in New York City.  Fans of PUMA, AC Milan and Manchester City are welcome to get involved and celebrate PUMA’s RE:FIBRE journey in store.

Saturday 20th July 2024
One hundred limited edition badges upcycled from match worn jerseys by Jack Grealish and Christian Pulisic will be up for grabs in-store. The badges have been designed by US upcycler and PUMA Voice of a RE:Generation Andrew Burgess, to commemorate the expansion of PUMA RE:FIBRE.

Sunday 21st July
Andrew Burgess will host three upcycling workshops to educate fashion-curious consumers on the techniques for customising and upcycling clothing to extend their lifespan. Leaning into the crossover between sport and fashion, consumers will have the chance to take a RE:FIBRE t-shirt and turn it into a sportstyle inspired garment.
 

More information on this can be found here.

 

Following the departure of long-term Supervisory Board member Thore Ohlsson and the appointment of the two new members, the size of the Supervisory Board has increased from six to seven members.

“Welcoming Harsh and Roland to the Supervisory Board will help PUMA to develop further by expanding the overall expertise of our Supervisory Board and further professionalizing its work,“ said Héloïse Temple-Boyer, Chair of the Supervisory Board of PUMA SE. “Both Harsh and Roland are excellent professionals, who will enrich the work of our board.”

“I am glad that we have been able to appoint such experienced leaders as Harsh and Roland to our Supervisory Board,” said PUMA CEO Arne Freundt. “Their vast knowledge will be an asset to our company, and I look forward to hearing their valuable perspectives on our business and working with them.”

Harsh Saini, a British citizen, is a sustainability expert. She has worked for brands like the Body Shop, Nike and the Fung Group where she implemented global sustainability strategies and shaped their commitment to ethical practices, sustainable development and corporate social responsibility.

Roland Krüger, a German citizen, is an expert in the field of retail management, marketing, and digitalization. He is currently a member of the Board of Directors of Dyson Holdings, having previously been Global CEO of Dyson, which is a technology company designing and manufacturing household appliances. He also has held various leadership positions in the automotive sector.