Key developments Q1 2024

• Currency-adjusted (ca) sales increase by 0.5% to € 2,102 million, reflecting a negative currency impact of approximately € 100 million (-3.9% reported) 
• Gross profit margin improves by 100 basis points to 47.5% despite major currency headwinds
• Operating expenses (OPEX) decrease by 0.4% to € 845 million
• Operating result (EBIT) declines by 9.4% to € 159 million, mainly due to negative currency effects on sales, gross profit margin and OPEX ratio
• 2024 Outlook confirmed: currency-adjusted sales growth at mid-single-digit percentage rate and EBIT in a range between € 620 million and € 700 million
• PUMA launches first global brand campaign in 10 years

First Quarter 2024

Sales increased by 0.5% (ca) to € 2,102.3 million from a strong quarter in the previous year (Q1 2023 grew +14.4% ca and reported). Currencies have continued to be a major headwind since Q2 2023, negatively impacting sales in euro terms by approximately € 100 million in Q1 2024 (-3.9% reported).

The Americas region recorded positive sales growth for the first time in four quarters, growing by 1.0% (ca) to € 790.0 million, with the U.S. showing a sequential improvement. Sales in the Asia/Pacific region increased by 0.6% (ca) to € 456.6 million, driven by continued growth in Greater China. In the EMEA region, sales were flat (ca) at € 855.7 million, with Europe coming in better than expected.

PUMA's wholesale business declined by 2.9% (ca) to € 1,608.1 million, reflecting the continued focus on good sell-through and prudent sell-in to improve inventory levels in the market. Our Direct-to-Consumer (DTC) business grew by 13.5% (ca) to € 494.2 million, driven by continued brand momentum and scaled back promotions. This resulted in an increased DTC share of 23.5% (Q1 2023: 21.3%), in line with expectations.

Sales in Footwear were up 3.1% (ca), largely driven by continued strong demand for our Football and other performance categories. Sales in Apparel and Accessories declined by 2.4% and 3.2% (ca) respectively.

The gross profit margin improved by 100 basis points to 47.5% (Q1 2023: 46.5%). Significant headwinds from currencies were more than offset by lower sourcing and freight costs as well as a favourable product and distribution channel mix.

Operating expenses (OPEX) decreased by 0.4% to € 845.3 million (Q1 2023: € 848.3 million). While marketing investments remained at 10% of sales, strict cost discipline in non-demand generating areas mostly offset warehouse ramp-up costs, investments in digital infrastructure and inflationary pressures. The OPEX ratio increased by 140 basis points to 40.2% (Q1 2023: 38.8%), mainly as a result of a higher DTC share and currency headwinds.

The operating result (EBIT) decreased by 9.4% to € 159.0 million (Q1 2023: € 175.5 million), mainly due to currency headwinds on sales, gross profit margin and OPEX ratio. As a result, the EBIT margin declined 50 basis points to 7.6% (Q1 2023: 8.0%).  

The financial result decreased to € -26.8 million (Q1 2023: € -7.8 million) due to lower gains related to forward exchange transactions (“swap points”) and higher interest rates.

Consequently, net income decreased by 25.5% to € 87.3 million (Q1 2023: € 117.3 million) and earnings per share amounted to € 0.58 (Q1 2023: € 0.78).

Working Capital

The working capital increased by 5.4% to € 1,845.7 million (31 March 2023: € 1,751.5 million). Inventories decreased by 16.8% to € 1,785.6 million (31 March 2023: € 2,147.3 million), mainly due to the elevated comparative base of the previous year, and remain at a healthy level. Trade receivables increased by 12.2% to € 1,432.5 million (31 March 2023: € 1,276.9 million) due to timing and the regional mix. On the liabilities side, trade payables decreased by 4.7% to 
€ 1,222.8 million (31 March 2023: € 1,282.7 million).

Outlook 2024

In line with our expectations, the year 2024 has started with geopolitical and macroeconomic challenges as well as currency volatility. In this environment, we continued to make further progress on our strategic priorities of brand elevation, product excellence and distribution quality, particularly in the key markets U.S. and China.

2024 is not only the year of sports, with major events such as the UEFA Euro 2024, CONMEBOL Copa América and the Olympic and Paralympic Games providing the perfect platform to showcase our strong product innovation and credibility as a performance brand. It is also the year in which PUMA has started to invest into its first global brand campaign in 10 years to sharpen its positioning as the fastest sports brand in the world.

Supported by the continued brand momentum and despite ongoing geopolitical and macroeconomic challenges, PUMA expects to achieve mid-single-digit currency-adjusted sales growth and an operating result (EBIT) in the range of € 620 million to € 700 million for the financial year 2024 (2023: € 621.6 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 exciting product newness and innovation for 2024/2025 as well as the very good feedback from retail partners and consumers give us confidence for the medium and long term success and continued growth of PUMA. 

Q1 Brand & Product Update

Ongoing Momentum in Performance

• PUMA launches exciting innovation with its new football boot Future 7 
• 4th kits of Manchester City and AC Milan released and sold out in record time
• PUMA launches first-ever signature lifestyle shoe LaFrancé for LaMelo Ball and third signature performance shoe for Breanna Stewart
• All-Pro Nitro becomes the shoe of NXTPro Hoops, one of the leading basketball circuits in the US
• Running shoe Fast-R NITRO Elite 2 recently awarded the prestigious Spanish CORREDOR award for the best new shoe of 2024 
• Pre-Released Deviate Elite NITRO 3 running shoes make PUMA athletes reach podium of World Marathon Majors for the first time in decades 

Building Up Traction with Sportstyle Newness

• Continued newness of PUMA’s terrace lead model Palermo and skate lead model Suede XL builds up further momentum 
• Latest FENTY x PUMA drops of Avanti Pony Hair and Creeper Phatty Earth Tone create great consumer engagement
• Success of recent launches of Mostro and Speedcat confirm emerging low profile trend
• A$AP Rocky’s Collection and low profile shoe Inhale create great buzz around F1 Grand Prix in Miami 
• Exciting product newness with Easy Rider, Speedcat, Mostro and Inhale to launch in course of this year

Making Progress in Brand Elevation

• PUMA launches its first Brand Campaign in 10 years in Paris in April 
• Brand Campaign demonstrates that PUMA’s superpower is Speed, creating a strong emotional connection between the consumer and PUMA brand mantra FOREVER. FASTER.
• Biggest media investment ever for PUMA with a 360 media mix
• Brand campaign is visible worldwide and will cover the whole year 2024 with specific executions for UEFA Euro 2024, CONMEBOL Copa América, Olympics, Paralympics and NBA season start
• PUMA unveils 17 Track and Field Federation Kits and its Fireglow shoe colorway for the competitions in the “Year of Sport”

The decision to open a creative space in LA is part of PUMA’s strategic priority to win in the United States. By tapping into the rich ecosystem of creative and innovative professionals in LA, the new PUMA Studio will play an important part in creating products and marketing activations that resonate with US consumers.

“Opening our PUMA Studio in LA is an important strategic move for us, as we seek to elevate our business in the United States,” said Arne Freundt, Chief Executive Officer at PUMA. “Our new home will allow us to attract the best talent in one of the most vibrant and creative cities globally to create great product propositions for the US market.”

The PUMA Studio will offer an exciting environment which allows the company’s product, design and marketing teams to bring their creative ideas to life. It will complement PUMA’s existing global and regional product teams located in Somerville, Mass. While the PUMA Studio will open in its new location in early 2025, PUMA already started the recruitment of the talent for its temporary office location in LA.

The PUMA Studio will also allow PUMA to be closer to some of its most important ambassadors from the worlds of music and entertainment. Apart from the design and creative space, it will feature a bespoke space for VIP clients to have exclusive access to PUMA’s upcoming products. 

PUMA CEO Arne Freundt and Alexandra Popp, the captain of the Germany national football team, spoke about leadership and the challenges of women in football. The video interview is part of the sports company’s digital annual report, which was published on March 18 on about.puma.com. 

Voted Germany’s footballer of the year three times, Alexandra is one of the most prominent ambassadors for women’s football and she is known for her skill and charismatic leadership on the pitch. She started off her career playing in a mixed team, and she distinctly recalled how girls were often belittled and treated unfairly on the pitch.

“Football is still pretty tough for girls. The boys in my team were cool. But our opponents were another story. They laughed at you. They said: look, they have a girl in their team, we’ll beat them easily,” Alexandra said. “Or when you play and you dribble past the first guy, maybe past the second guy and then the third guy fouls you hard and knocks you off your feet. In a very nasty way. And you have the parents on the sidelines who cheer him on. If you hear how girls are still being treated at some of the clubs, not a lot has changed.”

Arne said her story showed how much there is still to be done to create a level playing field for women in football.

“Your story is very inspiring and had a huge impact on me. I had thought and hoped that our society would be more open and judge players on their skills and performance and not on their gender,” Arne said on his LinkedIn channel. “It clearly shows that we have still a huge way to go. As a sports company we are 100% committed to support trailblazers like you who prove the haters and doubters wrong.”

In spite of the difficult time as a youth player, Alexandra believes the challenges early in her career gave her the thick skin necessary to persevere in her long and successful career. 

“I totally get the girls who say: I don’t want that,” she said. “Because it was the path I chose to follow, I can now say that those years helped me build up a certain resilience and a certain mentality. Maybe it was what made me the type and the character I am today when I’m on the pitch.”

When it comes to leadership, Alex said she believes that the necessary skills were part of her mindset early on in her career, but she noted that she still had a lot to learn once she was asked to captain the team.

“I needed a year to grow into that position, especially when it came to communication,” Alexandra said. “As a player, I benefited from tough, straightforward advice. And I thought, well I’ll do it exactly the same way. But that really backfired with some of the players. I had to learn that.” 

Arne, who became PUMA CEO in 2022, said he quickly discovered how much he enjoyed leading a team and developing people to reach their full potential.

“My first team was quite small, just two employees,” Arne said. “But I already really enjoyed it back then, to lead them, to develop them and to see that you have an impact. You make them better at what they do.”

Asked to give advice to young people who want to become CEOs themselves, Arne said they should first and foremost follow their passion.

“Look for something that you really enjoy doing. That intrinsically motivates you,” Arne said. “That gives you energy and moves you forward. Once you have found that, there are no further barriers to making you successful.”

Alexandra will captain Germany at the Olympic Football Tournament in Paris this year. 

The video of the full interview is available at https://annual-report.puma.com

The 27-year-old became an overnight sensation on his Paralympic Games debut in Tokyo 2020, where he picked up gold in the Men’s 100m T37 event – setting a world record time of 10.95 – as well as taking home golds in both the Men’s 200m T37 and the Mixed 4x100m Relay.

In 2010, Nick was diagnosed with a mild form of cerebral palsy, but showed unwaivering determination to pursue a career in sport, becoming an integral member of the US Para Seven-a-Side National Soccer Team, before switching his focus to the track. Despite his relative inexperience, Nick found immediate success, and was the first ever T37 athlete to brake the 22 second barrier at 200m.

“Nick’s story is inspiring for many reasons; his grit, determination and desire to become the fastest athlete is something everyone can admire. We have such an exciting year ahead of us and we are looking forward to writing more stories and breaking many more records together,” said Pascal Rolling, Director of Sports Marketing at PUMA.

“PUMA is synonymous with speed, and representing the fastest athletes in the world. For me to be going into one of the most important years of my career, with PUMA on my feet, it’s a blessing,” added Nick Mayhugh.

To find out more about PUMA Running follow @pumarunning on Instagram.

Key developments FY 2023 & Outlook 2024

• Currency-adjusted (ca) sales growth of 6.6% to € 8,602 million despite volatile environment
• Excluding the extraordinary devaluation of the Argentine peso, sales would have grown by more than 8%
• Adverse currencies lead to a negative impact on sales of more than € 400 million
• Gross profit margin improves by 20 basis points to 46.3% due to favourable pricing, geographical and channel mix effects, despite significant currency headwinds
• Operating result (EBIT) of € 622 million fully in line with outlook (€ 590 to 670 million) due to gross profit margin improvement and strict cost discipline 
• Excluding the extraordinary devaluation of the Argentine peso, EBIT would have been above last year (€ 641 million)
• Free cash flow more than doubles to € 369 million
• Management and Supervisory Board propose dividend of € 0.82 per share for 2023
• Outlook 2024: currency-adjusted sales growth at mid-single-digit percentage rate and EBIT in a range between € 620 million and € 700 million

Arne Freundt, Chief Executive Officer of PUMA SE:

“In a volatile environment that impacted the whole industry, PUMA delivered strong growth and profitability fully in line with the outlook. Without the extraordinary devaluation of the Argentine peso, which had a significant one-off accounting impact, our results would have been even stronger. This outcome reflects the strong underlying performance of PUMA and we were only able to achieve this because of our amazing PUMA Family and all of its fantastic partners.

2023 was also an important milestone year for PUMA as we started to lay the foundation for future growth based on strengthening our brand and improving our distribution quality. We are today in a better position than we were at the start of 2023: We established a new marketing organization and started to execute our new marketing strategy to elevate the brand. We also built new management teams in the US and China to execute our local must-win strategies and cleared our inventories to healthy levels.

Going into 2024, we see that the market environment remains challenging. As we are working through this ongoing challenging trade environment together with our retail partners with a clear focus on sell-through and prudent sell-in especially in the US and Europe, we expect a softer first half of the year. The persistent adverse currencies will also continue to be a pressure on the profitability in the first half 2024. On the back of great product newness and ongoing brand momentum, we expect an improvement quarter-over-quarter leading to a currency adjusted mid-single digit growth and improved operating result in the range of 620 – 700m EUR for the full year.

2024 - the Year of Sports - will be another important year for PUMA in which we will launch great product innovations, such as our fastest football boot Ultra and our fastest running shoes Fast-R2 and Deviate NITRO Elite 3. In Sportstyle, we will continue to deliver exciting newness with the Palermo catering for the current terrace trend and the Suede XL for the skate trend. We believe that “low profile”, which is undeniably PUMA’s hometurf, will be the next big thing and we are fully prepared with the relaunch of PUMA’s famous Mostro and Speedcat. Furthermore, we will launch our first brand campaign in 10 years to underline our positioning as the Fastest Sports Brand in the world and deepen our emotional connection with our consumers. 2024 will be another year where we will demonstrate that PUMA is the Challenger in the market.” 

PUMA’s strong underlying operating performance diluted by Argentine peso devaluation

Following the extraordinary devaluation of the Argentine peso by 54% in December 2023 and the application of hyperinflationary accounting under IAS 29 - which requires an adjustment for inflation and currency translation at the period-end exchange rate rather than at the average rate for the full year - the full impact of the devaluation was recognised in the fourth quarter. This had a negative impact on the reported financial performance for the fourth quarter and the financial year 2023.

Before the extraordinary devaluation of the Argentine peso, PUMA’s underlying operating performance in the financial year 2023 was strong, with currency adjusted sales growth above 8% and operating result (EBIT) above last year’s level (2022: € 641 million).

In the fourth quarter, despite a challenging market environment and before the significant devaluation of the Argentine peso, PUMA delivered an underlying operating sales growth and a significant improvement in profitability, demonstrating the strength of PUMA's operating business model.

The following chapters only refer to PUMA's reported financial performance after the devaluation of the Argentine peso.

Fourth Quarter 2023

Recorded PUMA Group sales decreased by 4.0% (ca) to € 1,982.2 million (-9.8% reported). 
Sales in the Americas region were significantly impacted by the devaluation of the Argentine peso, resulting in a decline of 6.4% (ca) to € 846.0 million. In the EMEA region, sales decreased by 5.2% (ca) to € 667.9 million, mainly due to generally higher inventory levels in the trade, resulting in lower sell-in while the sell-through remained strong. Asia/Pacific sales increased by 2.8% (ca) to € 468.3 million, supported by strong growth in Greater China and India. The rest of Asia was softer, impacted by consumer sentiment and warm weather conditions.

PUMA's wholesale business declined by 8.7% (ca) to € 1,355.0 million. While reported sales growth was negative due to the devaluation of the Argentine peso, the underlying sales performance was flattish, reflecting higher inventory levels in the trade, resulting in lower sell-in while sell-through remained strong. The Direct-to-Consumer (DTC) business grew by 8.0% (ca) to € 627.2 million, with underlying sales growth similar to the previous quarter (Q3 2023: 17.4% (ca)).

Sales growth by product division was diluted by the devaluation of the Argentine peso. On an underlying operating basis, PUMA continued to see strong demand, especially for its performance categories Football, Basketball, Golf and Performance Running.

The gross profit margin improved by 290 basis points to 47.0% (Q4 2022: 44.0%). Currencies continued to be a strong headwind, which was more than offset by tailwinds from fewer promotional activities, price adjustments as well as favourable sourcing and freight costs.

Operating expenses (OPEX) decreased by 9.7% to € 848.0 million (Q4 2022: € 938.7 million) due to strict cost discipline in non-demand generating cost areas and despite continued growth in the DTC channel and regional inflationary pressures. The OPEX ratio remained flat at 42.8% (Q4 2022: 42.7%).

The operating result (EBIT) was up 133.0% to € 94.4 million (Q4 2022: € 40.5 million), despite the Argentine peso devaluation, which reflects the underlying operational strength of the PUMA Group. The improvement was achieved through the gross profit margin and strict cost discipline. As a result, the EBIT margin improved to 4.8% (Q4 2022: 1.8%).  

The financial result decreased to € -67.1 million (Q4 2022: € -26.0 million), mainly due to negative currency conversion effects, including the valuation losses from the devaluation of the Argentine peso.

Consequently, net income decreased by 42.3% to € 0.8 million (Q4 2022: € 1.4 million) and earnings per share amounted to € 0.01 (Q4 2022: € 0.01).

Full Year 2023

PUMA Group sales increased by 6.6% (ca) to € 8,601.7 million (+1.6% reported). This was driven by the brand’s continued momentum and robust demand for its products. The Asia/Pacific region led the growth with a 13.6% (ca) increase in sales, closely followed by the EMEA region with a 13.4% (ca) increase in sales. Sales in the Americas region decreased by 2.4% (ca) due to the devaluation of the Argentine peso. The PUMA Group had a negative currency translation impact of more than € 400 million.

The Wholesale business was up by 3.5% (ca) to € 6,468.7 million and the Direct-to-Consumer (DTC) business increased by 17.5% (ca) to € 2,133.0 million. Sales in owned & operated retail stores increased 18.8% (ca) and e-commerce increased 15.0% (ca). This resulted in an increased DTC share of 24.8% (FY 2022: 23.1%), which is back in line with the pre-Covid level.

Footwear continued to lead the growth with 12.4% (ca) followed by Accessories with growth of 3.1% (ca), while Apparel remained flat (-0.3% (ca)).

The gross profit margin increased by 20 basis points to 46.3% (FY 2022: 46.1%). Currencies and industry-wide promotional activities were headwinds to the gross profit margin. These headwinds were more than offset by price adjustments and favourable geographical and distribution channel mix effects. 

Operating expenses (OPEX) increased by 3.3% to € 3,403.5 million (FY 2022: € 3,295.9 million). The increase was driven by sales-related distribution and other variable costs, the growth of our DTC channel and continued investment in marketing. This was partially offset by operating leverage in other cost areas due to strict cost discipline. The OPEX ratio increased by 60 basis points to 39.6% (FY 2022: 38.9%).

The operating result (EBIT) decreased by 3.0% to € 621.6 million (FY 2022: € 640.6 million) due to slightly higher operating expenses, partially offset by a favourable gross profit margin. As a result, the EBIT margin amounted to 7.2% (FY 2022: 7.6%).

The financial result decreased to € -143.3 million (FY 2022: € -88.9 million), mainly due to negative currency conversion effects, including the valuation losses from the devaluation of the Argentine peso. Tax expenses were at € 117.8 million (FY 2022: € 127.4 million) and the tax rate was at a normalised level of 24.6% (FY 2022: 23.1%).

Consequently, net income decreased by 13.7% to € 304.9 million (FY 2022: € 353.5 million) and the earnings per share amounted to € 2.03 (FY 2022: € 2.36).

Working Capital

The working capital increased by 8.3% to € 1,177.3 million (31 December 2022: € 1,086.8 million). Inventories were down by 19.6% to € 1,804.4 million (31 December 2022: € 2,245.1 million). This development is the result of previously taken measures to rightsize inventories and is also supported by last year's high comparative base. Trade receivables increased by 5.0% to € 1,118.4 million (31 December 2022: € 1,064.9 million). On the liabilities side, trade payables decreased by 13.6% to € 1,499.8 million (31 December 2022: € 1,734.9 million).

Cash Flow and Liquidity Situation

The free cash flow increased significantly by 107.9% to € 369.0 million in 2023 (FY 2022: 
€ 177.5 million). On 31 December 2023, PUMA had cash and cash equivalents of € 552.9 million, an increase of 19.4% compared to 2022 (31 December 2022: € 463.1 million). In addition, the PUMA Group had credit lines totalling € 1,552.8 million as of 31 December 2023 (31 December 2022: € 1,271.0 million). Unutilised credit lines were at 
€ 986.1 million on the balance sheet date compared to € 943.7 million at the end of 2022.

Proposal of a Dividend of € 0.82 per share

The positive net income enables the Management Board and the Supervisory Board of PUMA SE to propose to the Annual General Meeting on 22 May 2024 the distribution of a dividend of € 0.82 per share for the financial year 2023. This corresponds to a payout ratio of 40.3% of consolidated net income. The higher payout ratio is a result of the strong improvement in free cash flow and reflects the underlying positive operating business development. The payment of the dividend is scheduled to take place in the days following the Annual General Meeting at which the dividend is approved. In the previous year, a dividend of € 0.82 per share was paid out (payout ratio for the previous year: 34.7%).

Outlook 2024

We expect geopolitical and macroeconomic headwinds as well as currency volatility to persist in 2024. These conditions already led to muted consumer sentiment and volatile demand in 2023 and we expect these effects to continue in 2024, particularly in the first half of the year.

In this continued challenging environment, we are fully focused on executing our strategic priorities: elevating the brand, increasing product excellence and improving our distribution quality - especially in the key markets U.S. and China. For us, 2024 is not only the year of sport with major events such as the Olympic Games, UEFA Euro 2024 and the Copa America providing the perfect platform to showcase our strong product innovation and credibility as a performance brand. It is also the year in which PUMA will invest into its first global brand campaign in 10 years to sharpen its positioning as the fastest sports brand in the world.

Supported by the continued brand momentum and despite ongoing global geopolitical and macroeconomic challenges, PUMA expects to achieve mid-single-digit currency-adjusted sales growth and an operating result (EBIT) in the range of € 620 million to € 700 million for the financial year 2024 (2023: € 621.6 million). The outlook assumes that the future devaluation of the Argentine peso will be fully compensated by corresponding price increases in Argentina. 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 exciting product range for 2024 and the very good feedback from retail partners as well as consumers give us confidence for the medium- and long-term success and continued growth of PUMA. 

Brand & Strategy Update 

2023 Highlights

Foundation for PUMA’s brand elevation established 

• Reorganization of global Brand & Marketing organization by relocating Brand Marketing from Boston to the company headquarters in Herzogenaurach 
• Establishment of new Marketing and Brand leadership team
• Launch of PUMA’s biggest Brand Campaign ever in April 2024

Great Performance innovation underpins business growth

• Strong product innovations of PUMA’s Football boots FUTURE, ULTRA and KING deliver significant market share gains globally
• Award-winning NITRO foam technology makes PUMA the fastest growing performance running brand in Europe 
• All-Pro NITRO debuts as one of the best basketball shoes in NBA according to “Weartesters Best Basketball Shoes 2024”, worn by NBA rookie Scoot Henderson and FIBA World Cup Winner Dennis Schröder 

PUMA makes athletes to perform at their best 

• PUMA’s Running Innovations help win 22 medals at the World Athletics Championships in Budapest, twice as many compared to 2022 
• PUMA Deviate NITRO Elite leads Fiona O’Keeffe to her personal best setting the fastest debut pace ever by a woman at the U.S. Olympic Marathon Trials  
• PUMA team Manchester City wins five major trophies: UEFA Champions League, Premier League, FA CUP, UEFA Super Cup and FIFA Cup 
• PUMA Football National Team Ivory coast wins Africa Cup 2024 
• In Basketball, Breanna Stewart became the most valuable WNBA player for the second time and Dennis Schröder was voted MVP of the World Championships  

New Partnerships drive credibility and commercial success 

• PUMA’s strong position in Football attracted world-class players to join the PUMA family such as Kai Havertz, Jack Grealish, Xavi Simons, Alex Greenwood, Cody Gakpo and Daniel Carvajal 
• PUMA’s credibility as record-winning Track & Field brand helps attract Olympic 100m champion Marcell Jacobs and NCAA 100m champion Julien Alfred 
• A$AP Rocky joins PUMA as Creative Director for Formula 1 to help create exciting collections for F1 fans 
• Rihanna returns to the PUMA Brand to relaunch FENTY x PUMA 

Trendsetting Newness in Fashion and Sportstyle 

• Rihanna’s Avanti and Creeper Phatty create great buzz 
• PUMA manifests low-profile trend as sneaker icon Mostro returns at New York Fashion Week and iconic PUMA Speedcat relaunches successfully in South Korea 
• PUMA’s terrace trend styles Palermo and Superteam are continuing to accelerate traction with consumers 
• Skate Trend: PUMA introduces Suede XL as new trend sneaker
• A$AP Rocky presents first Formula 1 capsule collection at Las Vegas Grand Prix  

Making huge strides on Sustainability Journey 

• Two out of PUMA’s 10FOR25 Targets already achieved in 2023 
• SBTI 2030 greenhouse gas emission reduction targets already achieved in 2023 
• 8 out of 10 PUMA products made with recycled or certified materials in 2023 
• PUMA to make all football jerseys from recycled textile waste with RE:FIBRE 
• RE:SUEDE circularity project turns experimental sneakers into compost 

2023 Detailed Brand and Strategy Update

In 2023, we sharpened our strategy to pursue long-term, sustainable growth across all geographies and product categories. To achieve our long-term vision of consistently outperforming the market, our highest priorities remain to drive brand elevation, increaseproduct excellence and improve our distribution quality.  

Given the relevance of these markets, special emphasis has been placed on laying the foundation for sustainable long-term growth in the USA and China. 

Foundation for PUMA’s brand elevation established 

In July 2023, we relocated our brand management and marketing operations from Boston to Herzogenaurach and made the organizational changes that are necessary to implement our core strategy of elevating the PUMA brand. As part of this relocation, we also introduced a new global leadership team. Richard Teyssier, who before joining PUMA in 2010 held senior marketing and brand management positions for major FMCG companies, became Vice President Brand & Marketing. In early 2024, Richard was joined by Julie Legrand as Senior Director Global Brand Strategy, who previously worked as H&M’s Global Brand Director. Julie will define and execute our strategy to drive higher visibility and strengthen the PUMA brand and its perception around the world.

We also established a Consumer Insights Team to gain a deeper understanding of our consumers across the entire organization to inform and align our marketing strategies and product engine. To be closer to our most valuable entertainment ambassadors, we complemented our entertainment marketing hubs in Los Angeles and London with an additional hub in Seoul.  

The first major outcome of our brand elevation strategy will be PUMA’s biggest brand campaign ever. Set to launch in April 2024, we are confident that this campaign will create a long-term positive effect for the PUMA brand. The campaign, which will feature some of our best-known brand ambassadors, will create an emotional connection with our consumers around the world. 

USA – Strengthening the Organisation and anchoring PUMA in Sports 

We used 2023 to reset our U.S. business by cleaning our inventory, reducing dependency from offprice channels and strengthening our organization. In a challenging U.S. market, our U.S. business was over-proportionally challenged as we were not strong enough positioned as a sports brand and overdependent on off-price business. 

Basketball is a crucial part of our strategy to win in the important U.S. market, elevate the brand and clearly reposition PUMA as a sports brand. Our great line up of basketball ambassadors helped us execute this plan by creating exciting products with us and performing strongly on court. This led to PUMA becoming a TOP 3 signature and performance brand in the US. We are also gaining a perception impact of the halo effect from Basketball with key teen male consumers, where we have moved to #6 favorite brand ranked in Fall 2023 after being below the top 10 in Fall 2021 according to a study by Piper Sandler in 2023.  

In 2023, we strengthened our local organization and appointed Andrew Rudolph as Senior Vice President Sales and Alexa Andersen as Senior Vice President Merchandising. With our two new leaders we will pursue a clearer focus to drive the growth in the desirable Wholesale channels and an elevated merchandising strategy in the USA.  

China - Making PUMA one of the most sought-after international sports brands 

In 2023, we implemented a new China-for-China strategy to increase relevancy and brand heat for the local consumer and rebuilt the entire China organization.

In June, we appointed Shirley Li as the new General Manager. Shirley is a native Chinese and has more than 20 years of industry experience with a deep understanding of the Chinese market and consumer. In addition, we hired a new Commercial Director, Marketing Director, Digital Retail Director and Merchandise Director – all with a profound knowledge of the local market and consumer.  

We continued to increase Sports Marketing to position PUMA as a credible sports brand. We signed relevant athletes such as national female Basketball player ZhangRu and sponsored sports events such as Xiamen Diamond League 2023. We also started to collaborate with famous celebrities such as Cici Song and more of such signings will come in 2024.  

With view to the advanced digital costumer journeys in China, we invested in digital marketing and social ecommerce and saw a strong increase of brand heat on Tiktok both by search volume and users in 2023. In addition, we partnered with Tencent to enable us to build a digital member hub, that delivers comprehensive consumer data and insights, tailor made content and product offering as well as seamless omni channel operation.  

We further enhanced our local-for-local design and production capabilities to be relevant for local consumers. In 2024, around 40% of the products will be designed locally, while around 80% will be produced in China. With our new store format “Field of Play”, we are able to create an authentic brand experience and introduced a compelling new store environment to the Chinese consumers.  

Great Performance innovation underpins business growth 

We have achieved significant growth through product newness and technology & design innovations, which has led to significant market share gains, particularly in sports categories such as Football, Running and Basketball.  

In Football, we successfully established our Football boot franchises FUTURE, ULTRA and KING, which helped to gain significant market shares in football in all markets globally. All three franchises continue to be the strongest growing football styles in Europe. With this strong performance, PUMA’s market share in Football has quadrupled in the last 5 years. 

The latest release FUTURE 7 adapts to the shape of your foot, so the player can move without constraints for 90 minutes and beyond. The boot’s FUZIONFIT360 upper, a combination of different densities and mesh patterns, provides adaptable support, empowering players to experience a new level of 360-degree freedom of movement.  

We made big headlines by bidding farewell to Kangaroo leather and completely redesigned our legendary PUMA KING football boot with our new, animal-free material K-BETTER, which provides even better benefits to the football players. We were the first company in the industry to completely stop using kangaroo leather in 2023. 

To underscore our commitment to women in sports, we were the only sports brand to offer all our football boots in women’s specific fits at the Women’s World Cup. The fact that more than 90% of our world-class players during the tournament in Australia and New Zealand chose our women’s specific boots highlights the real demand for these innovative football boots.  

Another key highlight of PUMA’s product newness and innovation breakthrough is our award-winning running technology NITRO, which is at the core of our efforts to become a sought-after road running brand and helps the world’s fastest athletes perform on top of their game. In the third year since the introduction of NITRO, PUMA became the fastest growing performance running brand in Europe. We established a line-up of running products with a clear set of benefits for the consumer: Velocity for everyday running, Deviate for speed and ForeverRun for guidance and cushioning. 

NITRO foam was also introduced in our latest basketball shoe, the All-Pro NITRO, worn by NBA rookie and the third NBA Draft Pick Scoot Henderson as well as the MVP of the FIBA Basketball World Cup Dennis Schröder. Henderson also became the youngest player ever to receive his own signature shoe, the Scoot Zeros. Following the success of his first signature products, PUMA’s basketball ambassador LaMelo Ball followed up with the MB.03 signature shoe, which was introduced in several colours and styles throughout the year. Breanna Stewart, our WNBA ambassador introduced several versions of her signature shoe Stewie 2. 

PUMA makes athletes perform at their best 

Testament to the power of PUMA’s Running Innovation were 22 medals, including six gold medals, at the World Athletics Championships in Budapest, twice as many compared to 2022 in Eugene. PUMA athletes also won 17 medals at the European Indoor Championships in Istanbul and 13 medals at the World Para Athletics Championships in Paris. PUMA’s Armand “Mondo” Duplantis was named “Male Athlete of the Year”, after he once again improved the pole vault world record which now stands at 6.23 meters.  

The PUMA Deviate NITRO Elite helped U.S. Athletes Fiona O'Keeffe and Dakotah Lindwurm qualify for the Olympic Marathons with O'Keeffe setting the fastest debut pace ever by a U.S. woman. PUMA also propelled athlete Devynne Charlton to break 16-year-old 60m hurdles world record.  

In Football, we celebrated a historic moment when PUMA team Manchester City won five major trophies: the UEFA Champions League, the Premier League, the FA CUP, the UEFA Super Cup as well as the FIFA Cup.  

On the national team side, we celebrated the victory of PUMA Football National Team Ivory Coast at the Africa Cup 2024. 

In Basketball, Breanna Stewart became the "Most valuable WNBA Player” for the second time and Dennis Schröder was voted MVP of the tournament at the Basketball World Championships in Southeast Asia, which his team Germany won. 

In Golf, PUMA ambassador Rickie Fowler captured his sixth PGA Tour victory at the Rocket Mortgage Classic in Detroit, while Patricia Isabel Schmidt secured her maiden European Tour win at the Belgian Ladies Open. 

New Partnerships drive credibility and commercial success 

PUMA’s strong position in Football Innovation attracted world-class players to join the PUMA family: Arsenal and Germany midfielder Kai Havertz, Manchester City and England playmaker Jack Grealish, RB Leipzig and Netherlands midfielder Xavi Simons, FC Liverpool and Netherlands striker Cody Gakpo, Real Madrid and Spanish National Team right-back Daniel Carvajal and Manchester City and English national team defender Alex Greenwood.  

PUMA also became the long-term partner of the CAF, the African Football Confederation.  

and CONMEBOL, the South American Football Confederation.  

PUMA’s credibility as a record-winning Track & Field brand helped to sign world-class athletes such as Olympic 100m champion Marcell Jacobs and NCAA 100m champion Julien Alfred. The signing of European 5,000m Champion Konstanze Klosterhalfen, marathon legend Edna Kiplagat and European marathon Champion Aleksandra Lisowska underpinned the credibility of PUMA’s NITRO foam technology. 

We captured the increasing popularity of Formula 1, both in the U.S. and globally and became the official licensing partner and exclusive trackside retailer of Formula 1. To help us create the exciting collections for the growing number of F1 fans around the world, we signed A$AP Rocky as the Creative Director for F1. We believe that as one of the biggest cultural influencers, A$AP will provide a new perspective on the world of car culture. A first glimpse of what this will look like was seen during the Las Vegas Grand Prix, where he unveiled a first capsule collection. 

PUMA also used the setting of the much-anticipated race in Las Vegas for several events that highlighted our commitment to motorsport, including a spectacular display on the Las Vegas Sphere, a Car Club Event and PUMA’s own hospitality suite at the Paddock Club. 

To maintain our strong position in Formula 1, we also extended our long-term partnership with Scuderia Ferrari and signed a new contract with Williams Racing. 

The return of global superstar Rihanna to PUMA, was one of our most important announcements of 2023 and fully in line with our strategy to work with the world’s most influential ambassadors. 

Trendsetting Newness in Fashion and Sportstyle 

In 2023, PUMA continued to pioneer the Sportleisure industry and set new trends.  

First and foremost, PUMA invested in the incubation of the “Low Profile” sneaker trend, which is characterized by a flatter outsole, moving the whole silhouette closer to the ground. The Mostro and Speedcat are two iconic PUMA franchises with a distinct point of difference that are setting the path for this trend. Highlights of 2023 were the appearance of the Mostro sneaker during the Paris fashion week in collaboration with the Berlin based fashion label “Ottolinger”. The New York Fashion Week earlier this month saw the Mostro-themed Catwalk “Welcome to the amazing Mostro show” which caused great media attention and hype around the Mostro Franchise.  Meanwhile, PUMA continues to incubate the Speedcat Franchise through seeding activities. The first sales results from South Korea, where the model launched in January, are great and numerous credible Fashion sources like “GQ Germany” already predict the model to be the new hype sneaker for 2024.   

Besides the incubation of new trends, PUMA also launched great newness supporting the ongoing skate trend with models like the PUMA-180, the Suede XL as a skate-inspired iteration of PUMA’s most iconic model, the Suede OG as well as Rihanna’s plateau style Creeper Phatty. To bring additional hype and energy to the skate trend, PUMA collaborated with authentic brands like “Rip n Dip”, “Pleasures” and “Butter Goods” that have credibility in this space and resonate strongly with the streetwear driven consumer.   

The football inspired terrace trend is also currently shaping the market. We were on time to launch two new strong franchises, the “Palermo” and the “Super Team” that are commercially very relevant. Collaborations with the Palermo Football Club for a special Jersey further amplified the football authenticity of this story. Global ambassador Dua Lipa headlined the Palermo campaign and wears the model in her latest music video “Houdini” which has already more than 75M views in YouTube. Another successful terrace style was Rihanna’s first product in 2023, the Avanti.  

Making huge strides on Sustainability Journey 

In Sustainability, we made significant progress with our FOREVER. BETTER. sustainability strategy and our 10FOR25 targets. 

We were able to reach two of our 10FOR25 targets ahead of schedule. For our “Plastics and the Oceans” target, we no longer used plastic carrier bags in PUMA’s owned and operated stores, we supported scientific research on microfibres and researched biodegradable plastic options with our RE:SUEDE circularity experiment. 

With RE:SUEDE, we showed that we can turn an experimental version of our classic Suede sneaker into compost under certain tailor-made industrial conditions. A commercial version of the RE:SUEDE will launch with our partner Zalando on Earth Day in April 2024. 

We also reached our Human Rights target ahead of 2025 by training more than 220,000 factory workers on women’s empowerment and completely mapping subcontractors and our Tier 2 suppliers for human rights risks. 

We successfully reduced our greenhouse gas emissions and introduced a new, more ambitious science-based target for 2030. Despite strong sales growth, we reached our previous science-based target, which was introduced in 2019 and based on a “well below 2-degrees” scenario, seven years early. 

By using renewable energy, including renewable energy certificates, in our own warehouses, stores and offices, and by significantly investing in electric vehicles for our car fleet, we were able to reduce our own greenhouse gas emissions by 85% compared to our 2017 baseline. 

PUMA was able to reduce overall greenhouse gas emissions by 24% in 2023 compared to 2022, as our core suppliers doubled their use of renewable energy in 2023 compared to the previous year and our logistics partner Maersk introduced low carbon shipment tariffs on our most important sea freight routes. 

PUMA’s new climate goals, which were approved by the Science Based Targets Initiative, aim to reduce our emissions by what scientists say is necessary to keep global warming below 1.5 degrees. By 2030, we want to reduce our own greenhouse gas emissions by 90% and those coming from our supply chain and logistics by 33%, compared to 2017. 

In 2023, 8 out of 10 PUMA products were made with a significant part of recycled or certified materials. We also scaled up the use of recycled materials. Almost 65% of polyester in our apparel and accessories came from recycled sources as did 8.6% of our cotton. 

Starting 2024, all of PUMA’s replica football jerseys are now made from textile waste using PUMA’s RE:FIBRE recycling technology. The RE:FIBRE process focuses on textile waste as the primary source of material, which is broken down on a chemical level to create new textiles. The recycled material is just as good as new and can be used for recycling again and again without losing quality – making RE:FIBRE a promising and more sustainable long-term solution for recycling polyester textile waste. 

Transparency and engaging with Gen Z consumers in sustainability projects is a crucial part of our sustainability communication. In 2023, we launched our Voices of a RE:GENERATION initiative, which gives four Gen-Z environmental activists access to our senior management to give their feedback on PUMA’s sustainability strategy. Three of our voices visited PUMA’s supplier factories in Bangladesh, Vietnam and Turkey to get firsthand insights into our supply chain and some of the realities and challenges of sustainability at scale. The voices also help us to authentically communicate our sustainability initiatives to our Gen-Z audience.

Julie, who will report directly to PUMA’s Vice President Brand & Marketing Richard Teyssier, has 20 years of experience in marketing and brand management. Most recently, she worked as H&M’s Global Brand Director. She also held senior positions in marketing and brand at Procter & Gamble.

“With Julie, we have found an experienced leader to head up PUMA’s global brand strategy,” said Richard Teyssier. “She will define and execute our strategy to drive higher brand visibility and strengthen the PUMA brand and its perception around the world.”

The appointment of Julie follows the company’s decision taken in June to reorganize its global brand management and marketing operations and relocate them from Boston to PUMA’s headquarters in Herzogenaurach, Germany.

At the start of 2023, PUMA sharpened its strategic priorities and defined brand elevation as one of its three top strategic priorities for the company’s future growth.

„PUMA is one of the most recognized names in the sports industry with a fantastic brand heritage. I am very proud to be in charge of further sharpening the brand’s positioning and preference with consumers,” said Julie Legrand. “I look forward to working with the team in Herzogenaurach to further elevate the PUMA brand.”

PUMA has a successful history in Egypt with long-term partnerships, including those with the Egyptian Football Association, the Egyptian Handball Federation and other teams and athletes. Most recently, PUMA team Egypt won the African Men's Handball Championship for the ninth time and qualified for the Olympic tournament.

“For PUMA, the agreement represents a great opportunity to further invest in sports in Egypt and to strengthen our presence in the country. Egypt has a deeply rooted passion for sports and great economic potential. As a sports company, we are excited to invest in both," said Johan Kuhlo, Managing Director EEMEA Distribution.

As part of the agreement, the Egyptian delegation will wear PUMA products including apparel, footwear and accessories during the Games. The most recent Olympic Games in Tokyo were the most successful in the Egypt’s history with six medals.

“In PUMA we have found a perfect partner who is as passionate about sports in Egypt as we are. PUMA is already well known to Egyptians as a reliable partner for our national football and handball teams and I am proud the company will now also outfit our Olympic delegation for the upcoming Games in Paris,” said Prof. Dr. Ashraf Sobhy, the Egyptian Minister of Youth and Sports.

Financial performance 2023 impacted by extraordinary Argentine peso devaluation

Following the extraordinary devaluation of the Argentine peso by 54% in December 2023 and the application of hyperinflationary accounting*, PUMA achieved full-year currency-adjusted sales growth of around 6.6% and 1.6% reported, with preliminary 2023 sales of approx. € 8,602 million (outlook: high single-digit currency-adjusted growth). The operating result (EBIT) amounted to approx. € 622 million (outlook: € 590 to 670 million). Sales were therefore broadly in line with the outlook and EBIT, despite the significant devaluation, was fully in line with the outlook. The devaluation mainly affected the financial result. Consequently, net income was approx. € 305 million (outlook: change corresponding to EBIT).

Excluding the extraordinary devaluation of the Argentine peso, PUMA delivered currency-adjusted sales growth above 8% and an EBIT above last year (2022: € 641 million).

Although PUMA achieved an underlying operating sales growth, the application of hyperinflationary accounting led to a sales decline in the fourth quarter. On a currency-adjusted basis sales declined by around 4.0% (reported sales declined by around 9.8%) to approx. € 1,982 million (Q4 2022: € 2,197 million). EBIT came in strongly at 
approx. € 94 million (Q4 2022: € 41 million). The devaluation of the Argentine peso especially impacted the fourth quarter financial result, resulting in a net income of approx. € 0.8 million (Q4 2022: € 1.4 million). 
Both sales and net income are below the analysts’ consensus. However, the consensus does not take negative effects from the extraordinary devaluation of the Argentine peso into account.

Supported by PUMA's continued brand momentum and despite continued global geopolitical and macroeconomic headwinds, PUMA expects a mid-single-digit currency-adjusted sales growth and an EBIT in the range of € 620 million to € 700 million (2023: approx. € 622 million) in the financial year 2024. The outlook assumes that the future devaluation of the Argentine peso will be fully compensated by corresponding price increases in Argentina.

* Hyperinflation accounting requires according to IAS 29 an adjustment for inflation and the currency translation with the year-end currency rate instead of using the average currency rate of the full-year and the impact needs to be fully recognized in the respective quarter.

Excluding extraordinary impact, PUMA delivered full-year outlook

Excluding the extraordinary devaluation of the Argentine peso, PUMA delivered currency-adjusted sales growth above 8%, driven by the continued brand momentum and robust demand for its products. The operating result (EBIT) for the same period would have been above last year (2022: € 641 million). In a globally challenging geopolitical and macroeconomic environment, this represents a strong underlying operating performance and strict cost discipline.

“Our underlying operating performance was strong in 2023 and showed that we were well on track to meet all expectations. The accounting treatment of the hyperinflationary economy Argentina and its significant devaluation of the Argentine peso mid of December resulted in an extraordinary impact on fourth quarter and financial year results for 2023. Due to the magnitude and timing of this currency effect, we could not fully compensate the entire impact at the year-end. With a strong fourth quarter operating result we achieved a full-year EBIT absolutely in line with expectations as well as a significant improvement in the Free Cash Flow. This great achievement is thanks to the outstanding job of our entire PUMA family.” said Arne Freundt, CEO of PUMA.

Devaluation leads to significant gap between underlying operating performance and recorded financial performance

The extraordinary devaluation of the Argentine peso and its hyperinflationary accounting treatment led to a significant gap between the underlying operating performance - currency-adjusted sales growth of above 8% and EBIT above last year of € 641 million - and the recorded financial performance -currency-adjusted sales growth of around 6.6% and EBIT of approx. 
€ 622 million.

Fourth-quarter EBIT strong and fully in line with expectations

Despite the extraordinary devaluation of the Argentine peso, fourth-quarter EBIT was strong with approx. € 94 million (Q4 2022: € 41 million) and fully in line with expectations, driven by an improved gross profit margin and strict cost discipline. 
Although PUMA achieved an underlying operating sales growth, the application of hyperinflationary accounting led to a sales decline in the fourth quarter. On a currency-adjusted basis, sales declined by around 4.0% (reported sales declined by around 9.8%) to approx. € 1,982 million (Q4 2022: € 2,197 million). The devaluation of the Argentine peso especially impacted the fourth quarter financial result, resulting in a net income of approx. 
€ 0.8 million (Q4 2022: € 1.4 million).

In an ongoing volatile environment PUMA expects to grow mid single-digit in 2024

“For 2024, we foresee the geopolitical and macroeconomic challenges as well as highly volatile currencies to persist. This continues to weigh on consumer sentiment and demand, especially in the first half of 2024. While we cannot change these external factors, we continue to stay 100% focused on elevating the brand and bringing exciting product newness to the market.

We are in a better position at the start of 2024 than we were at the start of 2023: we have cleared our inventories, we have a product pipeline with exciting product newness and innovations and we will launch our new brand campaign soon.” said Arne Freundt. 
“We continue to stay hungry and have the ambition to continue to grab market shares.”

Supported by PUMA's continued brand momentum and despite continued global geopolitical and macroeconomic headwinds, PUMA expects in the financial year 2024 a mid-single-digit currency-adjusted sales growth and an EBIT in the range of € 620 million to € 700 million (2023: approx. € 622 million). The outlook assumes that the future devaluation of the Argentine peso will be fully compensated by corresponding price increases in Argentina.

* Hyperinflation accounting requires according to IAS 29 an adjustment for inflation and the currency translation with the year-end currency rate instead of using the average currency rate of the full-year and the impact needs to be fully recognized in the respective quarter.
 

The award, which is based on a comprehensive survey of the Top Employers Institute, was given to PUMA in Asia Pacific, Europe, North America and Latin America and for the first time in Poland and Ukraine. It is the second time PUMA has received this award globally and the fifth time the company has received the award in Europe.

“We are very proud that our efforts were once again recognized and that we became one of only 17 companies to receive the global Top Employer award,” said Dietmar Knoess, Vice President of People and Organization at PUMA. “We will take this result as an inspiration to work even harder to make PUMA a fantastic place to work.”

The Top Employers Institute certifies companies based on a survey, which covers six HR domains and 20 topics including People Strategy, Work Environment, Talent Acquisition, Learning, Diversity & Inclusion, Wellbeing and more.

To be an attractive employer, PUMA offers several services and benefits to its employees such as access to a large variety of courses and trainings, free access to a gym and sports courses.

PUMA also helps its employees balance their jobs and private lives with flexible working hours, mobile office, and the option to take up part-time employment or sabbaticals in different stages of their careers. Employees with children have access to special parent-child offices, nursing rooms, daycare spots and summer camps during school holidays.
 

2023 Third Quarter Facts 

• Sales increase by 6.0% currency adjusted (ca) to € 2,311 million (Q3 2022: € 2,354 million) with sales growth in all regions 

• Gross profit margin increases by 30 basis points to 47.1% (Q3 2022: 46.8%), despite strong currency headwinds 

• Operating expenses (OPEX) increase moderately by 1.2% to € 864 million (Q3 2022: € 853 million), supported by continued cost discipline 

• Operating result (EBIT) amounts to € 236 million (Q3 2022: € 258 million), resulting in an EBIT margin of 10.2% (Q3 2022: 10.9%) 

• Net income is at € 132 million (Q3 2022: € 146 million) 

• Inventory further normalizes to an appropriate level of € 1,874 million (September 30, 2022: € 2,350 million) 

• PUMA is well on track to achieve its full-year outlook 

Product, Marketing & Other Highlights 

• PUMA and Rihanna see strong demand for the Avanti, the first PUMA x FENTY product of the renewed collaboration with the global icon 

• PUMA welcomes A$AP Rocky as Creative Director for PUMA x F1 partnership 

• PUMA athlete Neymar Jr. breaks all-time scoring record of Brazil’s national team overtaking PUMA athlete Pelé 

• PUMA joins the South American Football Confederation CONMEBOL and the Confederation of African Football CAF as an official partner 

• PUMA signs long-term partnership with German International & Arsenal star Kai Havertz 

• PUMA athletes win 22 medals at World Athletics Championships in Budapest, twice as many as in Eugene last year 

• PUMA athlete Armand “Mondo” Duplantis jumps 6.23 meters to break the pole vault world record for the seventh time 

• PUMA signs a multi-year extension of its partnership with F1 Team Scuderia Ferrari and enters a long-term partnership with F1 Team Williams Racing 

• PUMA athlete Dennis Schröder, captain of the German Basketball National Team, named Most Valuable Player at the FIBA Basketball World Cup 2023 and Breanna Stewart wins the 2023 WNBA Most Valuable Player Award 

• PUMA and LaMelo Ball unveil the LaFrancé collection debuting the MB.03, LaMelo Ball’s third signature basketball shoe 

• PUMA and Swarovski launch a collection in celebration of PUMA's 75th anniversary 

• PUMA brings back low-profile sneaker silhouettes for Paris Fashion Week in collaboration with fashion labels Coperni and Ottolinger 

• PUMA appoints Javier Ortega as General Manager Europe

Third Quarter 2023

Currency adjusted sales increased by 6.0% to € 2,311.1 million, while currency effects had a negative impact on sales in euro terms (-1.8% reported). The EMEA region recorded a sales growth of 9.9% (ca) to € 1,020.7 million, which was driven by strong performance in EEMEA. The Asia/Pacific region grew by 4.6% (ca) to € 435.9 million, supported by a continued trend of recovery in Greater China following the market reopening, as well as ongoing growth in Japan and India. Sales in the Americas region increased by 2.5% (ca) to € 854.6 million. In line with expectations and the year-to-date trend, North America declined due to macroeconomic headwinds and PUMA’s relative dependency on the off-price Wholesale business, while Latin America continued to show strong growth. The PUMA Group continues to benefit from its geographic diversification of the business. 

PUMA’s Wholesale business increased by 3.1% (ca) to € 1,786.3 million. This is fully in line with the objective of being the best partner for retailers while working with them to manage elevated inventory levels in the marketplace. Direct-to-Consumer (DTC) business was up by 17.4% (ca) to € 524.9 million. Sales in owned & operated retail stores increased 21.8% (ca) and e-commerce was up 8.3% (ca). The ongoing strong growth in DTC was supported by continued brand momentum, retail store expansion and improved store productivity. This resulted in an increased DTC share of 22.7% (Q3 2022: 20.8%). 

Sales in Footwear were up 11.3% (ca), driven by continued strong demand for our Football, Basketball and Performance Running categories as well as for Sportstyle. Sales in Apparel declined 0.5% (ca), while Accessories grew 4.2% (ca).

The gross profit margin increased by 30 basis points to 47.1% (Q3 2022: 46.8%). In line with expectations, currency effects became a strong headwind year-on-year and further intensified compared to last quarter. However, this was more than offset by tailwinds from sourcing, freight, price adjustments, geographical and distribution channel mix effects. These accomplishments resulted in an improved gross profit margin. 

Operating expenses (OPEX) increased by 1.2% to € 863.7 million (Q3 2022: € 853.2 million). The moderate increase was driven by continued growth in the DTC channel and investments in marketing, while continued cost discipline and currency effects were favorable. As a result, the OPEX ratio increased by 120 basis points to 37.4% (Q3 2022: 36.2%). 

The operating result (EBIT) decreased by 8.3% to € 236.3 million (Q3 2022: € 257.7 million). While an improved gross profit margin had a positive impact, the overall EBIT decreased due to currency effects. The EBIT margin came in at 10.2% (Q3 2022: 10.9%). 

Consequently, net income decreased by 10.0% to € 131.7 million (Q3 2022: € 146.4 million) and earnings per share amounted to € 0.88 (Q3 2022: € 0.98).

Nine Months 2023

Sales increased by 10.3% (ca) to € 6,619.5 million (+5.6% reported). 
The EMEA region led the growth with a sales increase of 19.1% (ca), followed by the Asia/Pacific region with a sales increase of 18.0% (ca). Sales in the Americas region declined 1.0% (ca) due to macroeconomic headwinds, high inventory levels in the trade and PUMA’s relative dependency on the off-price Wholesale business in the U.S..

The Wholesale business was up 7.3% (ca) to € 5,113.7 million and the Direct-to-Consumer (DTC) business increased by 22.0% (ca) to € 1,505.8 million. Sales in owned & operated retail stores increased 23.2% (ca) and e-commerce increased 19.5% (ca). This resulted in an increased DTC share of 22.7% (9M 2022: 20.9%).

Footwear continued to lead the growth with 19.0% (ca), while Apparel and Accessories grew moderately and were up 1.6% (ca) and 1.8% (ca) respectively. 

The gross profit margin decreased by 60 basis points to 46.2% (9M 2022: 46.8%). Unfavorable currency effects, industry-wide promotional activity as well as higher sourcing and freight costs had a negative impact on the gross profit margin. However, the negative effects were partially offset by price adjustments and a favorable geographical and distribution channel mix.

Operating expenses (OPEX) increased by 8.4% to € 2,555.5 million (9M 2022: € 2,357.3 million). The increase was driven by sales-related distribution and other variable costs, the growth of our DTC channel and higher investments into marketing. This development was partially offset by operating leverage in other cost areas and favorable currency effects. The OPEX ratio increased by 100 basis points to 38.6% (9M 2022: 37.6%).

The operating result (EBIT) decreased by 12.1% to € 527.2 million (9M 2022: € 600.1 million) due to an unfavorable gross profit margin and higher operating expenses, which resulted in an EBIT margin of 8.0% (9M 2022: 9.6%).

Consequently, net income decreased by 13.6% to €304.0 million (9M 2022: € 352.1 million) and the earnings per share amounted to € 2.03 (9M 2022: € 2.35).

Consequently, net income decreased by 13.6% to € 304.0 million (9M 2022: € 352.1 million) and the earnings per share amounted to € 2.03 (9M 2022: € 2.35).

Working Capital

The working capital increased by 34.0% to € 1,794.9 million (September 30, 2022: € 1,339.0 million). Inventories were down by 20.3% to an appropriate level of € 1,874.1 million (September 30, 2022: € 2,350.2 million). This development is the result of previously taken measures to rightsize inventories and is also supported by last year's high comparative base. Trade receivables increased by 12.9% to € 1,457.3 million (September 30, 2022: € 1,290.3 million). On the liabilities side, trade payables decreased by 32.0% to € 1,230.1 million (September 30, 2022: € 1,810.2 million).

Outlook 2023 

In the first nine months of the year, PUMA delivered double digit top-line growth and EBIT in line with expectations, based on continued strong brand momentum, exciting product launches and strong partnerships along the value chain with athletes, retailers and suppliers. Sustained demand for PUMA products, supported by operational agility, led to a further normalization of PUMA inventory levels, in line with expectations.

While remaining fully focused on its controllables, PUMA continues to operate in an increasingly challenging geopolitical and macroeconomic environment. The recent conflict in the Middle East, the war in Ukraine, persistent inflation and the risk of recession are weighing on consumer sentiment, resulting in volatile demand in the retail sector.

In the context of above mentioned environment and taking into consideration PUMA's strong sales growth in the first nine months of the year, the company confirms currency adjusted sales growth in the high single-digit percentage range for the financial year 2023. In line with the previous outlook for 2023, PUMA expects an unchanged operating result (EBIT) in the range of € 590 million to € 670 million and a respective change in net income. PUMA continues to expect a strong improvement in profitability in the fourth quarter, mainly driven by a significant gross margin improvement due to lower sourcing and freight costs as well as fewer promotional activities.

As in previous years, PUMA will continue to focus on overcoming short-term challenges without compromising the brand’s mid- and long-term momentum, prioritizing sales growth and market share gains over short-term profitability.

PUMA has a long-standing tradition of football partnerships in Africa since first equipping national teams starting in 1997. Today PUMA has agreements with six football federations on the African continent, including Morocco, the first African nation ever to reach the semifinals at a World Cup, and Senegal, the current African champions.

“The passion for football runs deep in Africa and PUMA has taken a unique and creative approach in its partnerships with its African teams over the years,” said Johan Kuhlo, General Manager EEMEA Distribution at PUMA. “Our agreement with CAF celebrates this passion for the sport across the continent and we will jointly develop exciting products specifically for African football.”

The agreement, which will commence on November 1, will see PUMA supply the official matchball at CAF tournaments, provide the kit for referees and engage in several marketing opportunities, both inside and outside of the stadium. The appeal of African football extends well beyond the continent, with a strong viewership in major markets such as the UK, France and the United States.

“PUMA has been a big part of some of African football’s most iconic moments over the years, on the international stage and with some of Africa’s major clubs,” said CAF President Dr Patrice Motsepe.  “Making African Football globally competitive requires that African teams must win on the field, which needs partnerships with global companies with a strong commitment to African Football. We are absolutely delighted to have a world-class company in PUMA join the CAF family as a strong partner in helping us grow the game on the continent.”

PUMA and CAF will launch the official match ball for TotalEnergies Africa Cup of Nations Cote d’Ivoire 2023 at the Final Draw on October 12 .