PUMA Implement Cost Efficiency Program After 2024 Revenue Doesn't Meet Expectations

have released their preliminary results for , and in turn, their full year results. Despite having positive growth across both periods, they did not meet expectations and the Big Cat has subsequently initiated their ‘nextlevel’ cost efficiency program.
For the fourth quarter, PUMA reported that their currency-adjusted sales grew by 9.8 per cent to hit €2.289 billion, with this growth attributed to strong improvement in their wholesale operations and continued growth in DTC across all regions. Footwear, apparel, and accessories all saw positive growth, with 9.2 per cent, 8.8 per cent, and 14.5 per cent increases respectively. The Full Year 2024 drew in €8.817 billion, which was a 4.4 per cent increase from last year on a currency neutral basis. As for their EBIT (earnings before interest and taxes), it came in lower than expected at €622 million, which is why the ‘nextlevel’ cost efficiency program has been implemented.
CEO Arne Freundt 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 “nextlevel”, a comprehensive efficiency program targeting cost optimization and operational improvements. Combined with decisive actions already taken, we will implement further cost control measures in 2025. While we continue to operate in a dynamic environment, we are encouraged by our improved growth throughout 2024 and expect 2025 to grow stronger than 2024.’
These cost optimisations will focus primarily on optimising ‘direct and indirect costs, including personnel expenses’; however, there is no mention that this will include layoffs. With this program in place, PUMA aim to achieve an EBIT margin of 8.5 per cent (this year’s was 7.5 per cent).
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