The Puma SE managed to reduce its turnover loss in its ‘toughest year ever’
- Caitlin Terra
The Puma SE was able to limit damage in Corona in 2020 in terms of turnover. The sports brand saw sales drop 1.4 percent in the fiscal year at constant exchange rates. At current exchange rates, sales are down 4.9%. As a result, turnover reached 5.2 billion euros, according to the annual report. The company’s net income fell sharply – from 262.4 million euros to 78.9 million euros.
The Puma SE was particularly affected by the Corona impact in the second quarter, which the company said was “very weak”. In the fourth quarter of the fiscal year, business growth was already observed. 9.1% growth in sales at constant exchange rates and 2.8% at current exchange rates. Therefore, Bjørn Gulden, CEO of Puma SE, is satisfied with the results achieved in fiscal year 2020. “We see that people around the world want to exercise more when restrictions allow it and we see that consumers are still buying new sneakers and sportswear. The CEO said, “2020 was definitely the toughest year we’ve ever seen. The pandemic has put us in situations we’ve never seen before. We feel we have weathered this crisis to the best of our ability by addressing issues day in and day out without impeding Puma’s medium term momentum. ”
Puma managed to reduce revenue loss in FY20, and net income decreased by two-thirds
In the EMEA region (EMEA), Puma SE sales in the fiscal year were 1.9 billion euros. At constant exchange rates, the growth was 1.5%, but at current exchange rates, this means a decrease of 0.9%. Across America, sales were down 3 per cent at fixed exchange rates, to € 1.7 billion. Despite the growth in mainland China, total sales in the Asia / Pacific region decreased by 3.2% to 1.4 billion euros.
The accessories sector suffered the most, with sales down 3.5 percent at constant exchange rates. This was followed by a decrease of 3.1 percent in shoes and 1.5 percent in clothing. The shoes, which have a turnover of 2.3 billion euros, are still by far the sports brand’s biggest revenue. Wholesale sales volume decreased by 4 percent in fiscal year 2020, but Puma SE achieved 6.4 percent more sales from its direct-to-consumer business compared to fiscal year 2019.
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