Agency Report –
Berlin – German sporting goods manufacturer Puma suffered a drop in profits in 2024 and has been lagging behind its long-time local rival Adidas.
Net income at Puma dropped by 7.6% to €282 million ($308 million), the company announced on Wednesday.
Sales rose by 2.5% to around €8.8 billion, or 4.4% growth after adjusting for currency effects.
Puma’s much larger competitor Adidas, which is headquartered in the same small Bavarian town of Herzogenaurach, presented significantly more favourable annual figures just a week ago.
The two rival companies were founded by the brother Rudolf and Adolf Dassler in the late 1940s. The two had previously run a sporting goods firm together, but had a falling out.
Puma on Wednesday forecast only a moderate upswing for the current year.
The company projected sales in 2025 are to increase by a low to mid-single-digit percentage on a currency-adjusted basis.
However, Puma executives expect earnings before interest and taxes (EBIT) adjusted for special effects to fall to between €520 million and €600 million. In 2024, that figure was €622 million.
The company plans to spend €75 million to become more efficient, including by closing unprofitable company-operated retail stores. This should result in an EBIT contribution of around €100 million.
A popular trend for retro sportswear is expected to continue having a positive effect on sales at Puma, especially with models such as Suede, Palermo and Speedcat.
According to Puma chief executive Arne Freundt, the company also intends to invest €75 million in corporate reforms in the current year and to adapt the company’s infrastructure – from material purchasing to warehousing.
