Puma, a sportswear company, unveiled a cost-cutting initiative on Wednesday after posting 2024 net profit that fell short of its forecasts.
According to Puma’s preliminary figures, which were made public after markets closed, the company’s net profit for the year was US $ 294 million, down from US $ 317 million in 2023. It also stated that higher interest payments on its debt negatively impacted its revenue.
Arne Freundt, CEO of PUMA, acknowledged that while the company saw strong sales growth and made significant strides with its strategic initiatives in 2024, it was not satisfied with its profitability, though he did not specify what the company’s expectations had been.
By 2027, the cost-cutting initiative seeks to return Puma to an 8.5 per cent earnings before interest and tax (EBIT) margin. In the long run, Puma wants to have an EBIT margin of 10 per cent. In 2024, the EBIT margin was 7.1 per cent.
According to a spokeswoman, Puma wants to maintain a steady workforce and has no global layoff target, despite the company’s announcement that the program would look for savings in areas like personnel expenses.
