PUMA SE, a German athletic footwear, apparel, and accessories manufacturer, has revealed a 42.3% decrease in its fourth quarter net income, dropping to 0.8 million euros from 1.4 million euros in the previous year. Despite a stagnation in earnings per share at 0.01 euro, the reduction in net income primarily reflects a frail financial result.
However, showing a silver lining, the operating result — or EBIT, a crucial profitability indicator — surged by 133% to 94.4 million euros from 40.5 million euros. This elevation is credited largely to gross profit margin and stringent cost control procedures, enhancing the EBIT margin to 4.8% from 1.8% in the previous year.
However, the company did experience a 9.8% drop in group sales to 1.98 billion euros, falling by 4% in constant currency terms.
Additionally, the company's Management and Supervisory Boards plan to recommend a dividend of 0.82 euro per share for 2023 during the Annual General Meeting scheduled for May 22nd, maintaining the rate from the last year.
Looking ahead to fiscal 2024, PUMA aims to accomplish mid-single-digit currency-adjusted sales growth and a boosted EBIT in the 620 million - 700 million euro range. Anticipating changes aligning with the operating result, the company foresees a shift in net income for 2024. This compares to a net income of 304.9 million euros and an EBIT of 622 million euros in the previous year.
