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Puma Thriving In Europe Despite Weak U.S. Market

  • German brand continues to report solid earnings despite headwinds
  • Resurgent U.S. growth projected due in part to celebrity collaborations
Puma headquarters in Herzogenaurach, Germany
PUMA

German sportswear brand Puma may continue to struggle in the U.S., but it still enjoyed a solid quarter thanks to gains on its home continent and in China.

Puma reported operating profit of $252 million for the third quarter, down 8.5% but beating analyst expectations, on revenue of $2.45 billion, up 6% on a currency-adjusted basis. 

American sales during the quarter rose just 2.5% and are down by 1% for the year to date, as the brand has sought to focus more on higher-end products. But those figures were easily surpassed by a 9.9% bump in Europe, the Middle East, and Africa, plus another 4.6% boost in the Asia-Pacific region.

Perhaps most pleasing to investors was Puma’s reaffirmation of its full-year projections, including an operating profit of $625 million to $710 million. As a result, Puma stock rose nearly 8% in Tuesday trading in Frankfurt.

“While the market continues to experience significant macroeconomic headwinds and 2023 remains a transition year, we outgrew the market,” said Puma CEO Arne Freundt. 

American Comeback?

Puma is looking for resurgent American growth next year, in part due to new collaborations with celebrities including Rihanna and her partner, A$AP Rocky.

The company continues to operate in a vigorous battle for market share with other major shoe and apparel brands such as Adidas, Nike, Reebok, and Under Armour

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