The company remains optimistic about a substantial uptick in profitability during the forthcoming fourth quarter. This anticipated surge is attributed to reduced costs in areas like marketing, sourcing, and freight.
In a recent statement, Puma alluded to a myriad of global challenges affecting consumer sentiment. The ongoing Middle Eastern conflicts, the Ukraine war, persistent inflationary trends, and looming recession fears are collectively contributing to the retail sector’s fluctuating demand.
Puma’s counterparts in the industry, namely Nike and Inditex (the parent company of Zara), had previously highlighted adverse currency exchange impacts in September. Puma is contending with similar challenges. The sportswear brand is grappling with the ramifications of a robust Euro relative to the US Dollar over the past year. This has been exacerbated by diminished demand in the North American market and a more protracted recovery trajectory in China than initially anticipated.
Puma’s operating profit for the recently concluded quarter stood at 236.3 million euros (equivalent to $252.3 million), marking a decline from the previous year’s figure of 257.7 million euros. Nevertheless, the company remains steadfast in its goal of achieving an annual operating profit ranging between 590 million and 670 million euros.