Published : 1 month ago, on 06/11/2024

By Linda Pasquini and Helen Reid

(Reuters) -German sportswear maker Puma’s third-quarter sales missed expectations on Wednesday due to sluggish demand and as weaker currencies in markets like Mexico, Argentina and Japan weighed on its revenue in euro terms.

Puma CEO Arne Freundt promised a better end to the year, though, saying that China’s Golden Week holiday in October and the lead-up to Singles’ Day on Nov. 11 showed “very encouraging” demand.

“Talking to the retailers both in Europe and the U.S., I think we are quite confident about the demand going into the important shopping season,” he added.

The company was well positioned to react swiftly to tariff increases, Freundt said, referring to the potential impact of Donald Trump’s plans to impose tariffs on some imports to the U.S.

Third-quarter sales grew 5% in currency-adjusted terms to 2.31 billion euros ($2.48 billion), broadly stable from a year earlier but short of the 2.36 billion euros expected by analysts, according to LSEG data.

Puma shares fell 4% in early trading.

Puma sold more soccer and running shoes in the quarter, driving footwear revenues up 9.3%. But sales in its biggest market, Europe, Middle East and Africa (EMEA), were up by only 0.8%, with Freundt blaming weak consumer sentiment in the Middle East.

Sales in the Americas grew 11.4%, while sales in Asia-Pacific were up 3%.

Puma this year launched new global marketing campaigns in an effort to better compete with bigger rivals like Adidas and Nike and the brand is relaunching the Formula 1-inspired “Speedcat” shoe first released in 1999, aiming for it to become a key product franchise.

Freundt said demand for the low-top, thin-soled sneakers is building as the brand seeks to get them on the feet of influencers and models.

“I’m very confident to say we are leading the low-profile trend,” he told reporters on a call.

Puma aims to sell between 4 and 6 million pairs of Speedcat shoes in 2025, he said.

Puma confirmed its full-year outlook for currency-adjusted revenue in mid single-digit percentage, and core profit (EBIT) of between 620 million to 670 million euros, saying its order book from retailers was strong for the remainder of the year.

(Reporting by Linda Pasquini In Gdansk and Helen Reid in London, editing by Thomas Seythal, Rachel More and Bernadette Baum)