How Argentina ruined Puma’s year

In the last quarter, Puma’s year collapsed like a house of cards, all because of the Argentine peso. 2024 will also be marked by instability, the brand warns.

10 % less sales

Over the full year 2023, Puma was still able to post a moderate sales increase of 1.6 % to 8.6 billion euros, while net profits went down 14 % to 305 million euros. The sportswear company attributes the weak figures to the exceptionally strong depreciation of the Argentine peso, which lost 54 % of its value in December. Without that depreciation, sales would have been up by as much as 8 % and operating profit would have grown as well.

In the fourth quarter, which includes the Argentinian crisis, revenue dropped 10 % to 1.98 billion. The same issue pushed net profit downwards as well. Nevertheless, operating income in the fourth quarter was in line with expectations, thanks to improved gross profit margins and strict cost control.

CEO Arne Freundt is concerned that unstable exchange rates will continue to affect Puma’s results next financial year as well, as will geopolitical and macroeconomic uncertainty. Especially in the first half of 2024, this will still weigh on consumer confidence and demand, he thinks. The CEO is now counting on currency-adjusted sales growth of around 5 % and a slight growth in operating profit. In Argentina, the sports brand is already raising prices.