Puma: share collapses as Q4 below expectations
(CercleFinance.com) - On Thursday Puma announced results that deteriorated last year due to high interest expenses, an unfavourable development that will force it to launch a cost-cutting program with a view to achieving its margin targets.
FY 2024 currency-adjusted sales rose by 4.4% to E8.82bn, but net income fell to E282m, compared with E305m in 2023.
In Q4, the sporting goods manufacturer's sales rose by 9.8% to E2.29bn, below the consensus of 12%.
Q4 did not accelerate as much as the market had hoped, resulting in results and margins again below expectations, RBC analysts said.
Over the last three months of the year, the equipment manufacturer's EBIT stood at E109m, compared with E94m a year earlier.
This disappointing performance contrasts with that of rival adidas, which yesterday announced preliminary 2024 results well above expectations, thanks to the success of the strategy implemented by former Puma boss Bjorn Gulden.
Against this backdrop, Puma says it has decided to launch a cost optimization plan called 'nextlevel', with the aim of achieving an operating margin of 8.5% by 2027.
The group had previously forecast an operating margin of between 8% and 8.5% this year.
This compares with a margin of 7.1% last year.
Puma plans to announce FY 2024 results and outlook for 2025 on 12 March.
On the Frankfurt Stock Exchange, Puma's share price collapsed 17.5% on Thursday morning, back towards its lows of last summer.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
FY 2024 currency-adjusted sales rose by 4.4% to E8.82bn, but net income fell to E282m, compared with E305m in 2023.
In Q4, the sporting goods manufacturer's sales rose by 9.8% to E2.29bn, below the consensus of 12%.
Q4 did not accelerate as much as the market had hoped, resulting in results and margins again below expectations, RBC analysts said.
Over the last three months of the year, the equipment manufacturer's EBIT stood at E109m, compared with E94m a year earlier.
This disappointing performance contrasts with that of rival adidas, which yesterday announced preliminary 2024 results well above expectations, thanks to the success of the strategy implemented by former Puma boss Bjorn Gulden.
Against this backdrop, Puma says it has decided to launch a cost optimization plan called 'nextlevel', with the aim of achieving an operating margin of 8.5% by 2027.
The group had previously forecast an operating margin of between 8% and 8.5% this year.
This compares with a margin of 7.1% last year.
Puma plans to announce FY 2024 results and outlook for 2025 on 12 March.
On the Frankfurt Stock Exchange, Puma's share price collapsed 17.5% on Thursday morning, back towards its lows of last summer.
Copyright (c) 2025 CercleFinance.com. All rights reserved.