By David Sachs
Puma shares fell Wednesday after the company said sales fell in the fourth quarter and that its performance suffered from the devaluation of the Argentine peso.
At 0924 GMT, shares in the German apparel company were down 5.6% at EUR40.56 after falling as low as EUR39.37.
Sales fell by about 9.8% on the quarter, but by around 4% on a currency-adjusted basis to around 1.98 billion euros ($2.15 billion)–down from EUR2.2 billion in the fourth quarter of last year, Puma said.
Full-year sales reached EUR8.60 billion, up from EUR8.465 billion in 2022. Puma said sales, which grew 8% on a currency-adjusted basis, were broadly in line with its target of currency-adjusted sales growth in the high single-digit percent range.
Earnings before interest and taxes finished the fourth quarter at about 94 million euros ($102 million) compared with EUR41 million a year prior. For the year, EBIT was around EUR622 million, meeting Puma’s target range of between EUR590 million and EUR670 million, but below the 2022 result of EUR640.6 million.
Net income was around EUR305 million compared with EUR343 million in 2022.
“The accounting treatment of the hyperinflationary economy Argentina and its significant devaluation of the Argentine peso mid of December resulted in an extraordinary impact on fourth quarter and financial year results for 2023,” Puma said. “Due to the magnitude and timing of this currency effect, we could not fully compensate the entire impact at the year-end.”
Puma said it expects mid-single-digit currency-adjusted sales growth in 2024 and EBIT between EUR620 million and EUR700 million.
Write to David Sachs at [email protected]
Corrections & Amplifications
This article was corrected at 1024 GMT to fix the net income figure. Puma’s net income in 2023 was around EUR305 million. An earlier article incorrectly said net income was EUR350 million.
Puma’s net income in 2023 was around EUR305 million. “Puma Shares Drop on Lower Sales, Argentine Peso Effects,” at 0931 GMT, incorrectly said net income was EUR350 million.
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