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.

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”

Disclosure of inside information according to Article 17 Market Abuse Regulation

PUMA SE (ISIN: DE00069696303 WKN: 696960)

PUMA WAY 1, D-91074 Herzogenaurach

Herzogenaurach, 29 February 2024 – PUMA plans to return up to 50% of the Group’s net income to shareholders through its dividend policy and share buybacks. PUMA's strong balance sheet at the end of 2023 and its strategy to achieve sustainable and profitable growth will result in robust cumulative free cash flow generation over the next few years, providing the organic foundation for increased payout to shareholders.

Today, the Management Board of PUMA SE has decided to change the dividend policy to a payout ratio of 25% - 40% of the Group’s net income (previous payout ratio 25% - 35%). In addition, the Management Board of PUMA SE has decided to initiate a share buyback program, which will complement the dividend policy by another 10% - 25% to a total payout of up to 50% of the Group’s net income.
The first tranche provides for the buyback of own shares with a total purchase price of up to € 100 million and starts in March 2024 for a period ending on 6 May 2025. In accordance with the authorisation granted by the Annual General Meeting 2020, the repurchased shares will subsequently be cancelled.

The share buyback shall be executed through the stock exchange and in accordance with the authorisation of the Company’s Annual General Meeting 2020 on 7 May 2020, and in line with the safe harbour requirements of buyback programs set forth by Regulation (EU) No. 596/2014 (Market Abuse Regulation) and Commission Delegated Regulation (EU) No. 2016/1052 of 8 March 2016 (Delegate Regulation).

The share buyback will be carried out by an independent financial service provider, which will make its trading decisions regarding the exact timing of the share purchases independently of and without any influence by the Company. The financial service provider is obliged to comply with the trading conditions of Art. 3 of the Delegated Regulation and the provisions contained in this share buyback program.

PUMA reserves the right to suspend or terminate the share buyback program at any time.

Information on the transactions relating to the share buyback program will be published according to Art. 2 of the Delegated Regulation and will be made available on the Company's website under https://about.puma.com/en/investor-relations. 
 

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.

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.
 

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.

Javier, who has been with PUMA since 2009 and has worked as the Area General Manager for Southern Europe for the past nine years, succeeds Richard Teyssier, who started his new role as PUMA’s Global Brand & Marketing Director in July.

“During his time as Area General Manager of Southern Europe, Javier has done a great job of elevating the PUMA brand and growing our business substantially in Southern Europe,” said Arne Freundt, PUMA CEO. “In his new job as General Manager Europe, Javier will build on PUMA’s strong momentum in the region, strengthen our position as the best partner for our retailers and align our Go-To-Market activities across the region.”

Esteve Planas (47) will succeed Javier as Area General Manager for Southern Europe. He has held several financial roles at PUMA between 2010 and 2022, including as the CFO of PUMA Spain and PUMA Iberia. In these positions, he helped set PUMA’s successful growth strategy in Southern Europe. He returns to PUMA after working as CFO of Spanish pharmaceutical company Galenicum since the start of 2023.

“In Arne Freundt, we have a recognized leader withing the Company, taking over as CEO. He has been a designated candidate and is the ideal choice to continue PUMA’s very successful path and to further accelerate the Company’s momentum. He carries the PUMA family in his heart, and will ensure that PUMA continues to be the best partner for PUMA’s retailers, suppliers and athletes”, said Héloïse Temple-Boyer, Chair of the Supervisory Board of PUMA.

Héloïse Temple-Boyer added: “We thank Bjørn Gulden for his excellent contributions during his more than nine years at PUMA in which he brought the PUMA Group back on track and made sure he leaves it in outstanding shape.”

Arne Freundt (42) has worked for PUMA for more than ten years and has been a member of the Management Board as Chief Commercial Officer since June 2021. During his time at PUMA, he has held various positions and was responsible for the Corporate Strategy, the Global Direct-to-Consumer business and the Region EMEA as a General Manager.  

“My current contract with PUMA ends 31/12/22 and after 9 years I have decided not to renew,” said Bjørn Gulden. “I have had 9 great years with the PUMA family, and I am very proud of what we have achieved together. Even during difficult times, we have had great momentum and have delivered record results in revenue and in earnings. This has been achieved by outstanding teams, our special culture and a great Supervisory Board. The Board has been very supportive also in difficult times and always with a long-term view looking at what will be the best for the company and our people. I felt it was the right time for PUMA, my successor and me to leave now. I still have a lot of energy and want to at least continue 5-10 more years in an operational role, which I think would have been too long for PUMA. Arne has been working directly with me for 9 years, has always been part of setting the strategy and making big decisions and has made a big contribution to PUMA´s success. He knows my strengths and weaknesses and I am sure he will do an even better job than me.”

“I feel privileged to be given this opportunity by the Supervisory Board to lead this great company with its fantastic people and take PUMA to the next level,” said Arne Freundt. “Bjørn has been an inspiring leader and I am very thankful for the joint journey.”