Despite growth, Puma embarks on cost-cutting drive
Sports company Puma has reported preliminary 2024 results, with sales growth of 9.8% to €2.3 billion in the fourth quarter and growth of 4.4% to €8.8 billion in the full year.
The footwear business grew 9.2% and apparel was up 8.8%, while accessories increased 14.5%.
For the full year 2024, all regions, product divisions and distribution channels improved sales compared with the previous year.
However, earnings came in at €282 million, which is below the year before (€305 million).
The company has now launched an “efficiency programme” to “optimise direct and indirect costs, including personnel expenses through better resource allocation aligned with our strategic growth areas”.
Arne Freundt, CEO of Puma, said: "While we achieved solid sales growth in 2024 and made meaningful progress on our strategic initiatives, we are not satisfied with our profitability. With a heightened focus on translating top-line growth to increased profitability growth, we have initiated 'next-level', a comprehensive efficiency programme targeting cost optimisation and operational improvements. Combined with decisive actions already taken, we will implement further cost control measures in 2025.”
