Puma cuts purchasing as inventories fall

Puma cut purchasing volumes as inventories fell 24.3% year on year to €1,608.9 million ($1,790.7m), while weaker demand and distribution changes weighed on third-quarter sales.

The sportswear company’s results linked the inventory reduction mainly to lower purchasing, rather than increased sales. It reported no associated environmental savings.

Apparel sales declined 9.4% on a currency-adjusted basis, reflecting softer demand for core ranges and children’s products. Group sales fell 6.3% on the same basis.

Lower sourcing prices, tariff refunds and reduced freight expenses helped lift gross margin to 49.5%, although higher operating expenses contributed to an operating loss.

Arthur Hoeld, chief executive officer of Puma, said: “Our third-quarter performance was in line with expectations”.

The company narrowed its forecast annual operating loss to €80 million–€130 million ($89m–$144.7m).

It also reduced planned capital expenditure to below €150 million ($167m), partly reflecting the classification of certain IT investments as operating expenses.