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© Reuters. A salesman reveals a shoe within the sport retailer PUMA, because the unfold of the coronavirus illness (COVID-19) continues, in Berlin, Germany, April 25, 2020. REUTERS/Annegret Hilse/file picture
By Linda Pasquini and Alexander Hübner
(Reuters) -Puma on Tuesday stated it expects a delicate first half of the yr as damaging foreign money results proceed to place strain on the German sportswear firm, however caught to the annual targets it gave in January.
“Going into 2024, we see that the market environment remains challenging,” CEO Arne Freundt stated in a press release.
The sportswear sector, hit by rising materials and freight prices in addition to stock markdowns and better promotional bills, has seen demand weaken as prospects battling with inflation reduce spending on high-priced items.
Within the fourth quarter of 2023, Puma’s currency-adjusted gross sales within the Americas fell by 6.4% to 846 million euros ($918.5 million), hit by a droop within the worth of the Argentine peso.
Forex-adjusted gross sales within the Europe, Center East and Africa (EMEA) area additionally dropped 5.2% on the yr to 667.9 million euros, in comparison with a 9.9% year-on-year enhance within the third quarter.
The decline was primarily because of usually greater stock ranges within the commerce, Puma stated.
Asia-Pacific income rose 2.8% on a currency-adjusted foundation to 468.3 million euros within the quarter, helped by robust progress within the Larger China area and India.
Nevertheless, Puma flagged that gross sales in the remainder of Asia have been softer, impacted by shopper sentiment and heat climate.
The group reiterated its 2024 forecast for mid-single-digit proportion progress in currency-adjusted gross sales, and earnings earlier than curiosity and tax of 620 million to 700 million euros.
The corporate stated it might be launching a brand new model marketing campaign within the present yr to strengthen its positioning, the primary such marketing campaign in ten years.
Puma’s shares have been 1.4% greater in early Frankfurt commerce, having misplaced 16% year-to-date by Monday’s shut.
($1 = 0.9211 euros)