Puma, the German sportswear brand, has unveiled its third-quarter financial results, indicating a 6 per cent growth in sales compared to the previous year. The company achieved € 2.31 billion in currency-adjusted revenue during this quarter, slightly surpassing market projections.

“Ahead of the results, there was a lot of caution, especially regarding the top line and margin. However, the outcomes were somewhat better than expected,” remarked Damien Lanternier, portfolio manager at DNCA in Paris, a Puma shareholder.

The gross margin also exceeded expectations, reaching 47.1 per cent, up from 46.8 per cent the previous year, defying predictions of a decline. Puma affirmed its annual operating profit target of € 590 million to € 670 million, anticipating a “strong improvement in profitability” in the fourth quarter due to reduced marketing, sourcing, and freight costs, despite a challenging consumer demand landscape.

CEO Arne Freundt, adopting a cautious stance, stated, “We stay, let’s say, very conservative and very cautious because we just see too many moving parts currently in the world.”

Currency fluctuations negatively impacted sales in euros, with the strong euro affecting the conversion of dollar sales into Puma’s domestic currency. In currency-adjusted terms, Puma experienced robust growth in the EMEA (Middle East and Africa) region, with a 9.9 per cent increase in the third quarter. Sales in Asia-Pacific grew by 4.6 per cent, while the Americas saw a modest 2.5 per cent gain.

Deutsche Bank analyst Adam Cochrane highlighted Puma’s challenge in strengthening brand perception, particularly in key markets like the US and China.