Slide 1: Q2 2024 Earnings Call
Q2 2024 EARNINGS CALL AUGUST 7TH, 2024
Slide 2: Fully in line with expectations
FULLY IN LINE WITH EXPECTATIONS Q2 2024
Slide 3: Agenda
AGENDA 01. BRAND UPDATE Q2 2024 02. FINANCIAL UPDATE Q2/H1 2024 03. OUTLOOK 2024
Slide 4: Main highlights
MAIN HIGHLIGHTS Q2 2024 FULLY IN LINE WITH EXPECTATIONS GAINING FURTHER MARKET SHARE IN PERFORMANCE CATEGORIES MAKING FURTHER PROGRESS WITH SPORTSTYLE TRANSITION DRIVING PROGRESS IN BRAND ELEVATION
Slide 5: Strong brand visibility
4 NATIONAL TEAMS ~100 PLAYERS CHECK24 FAN T-SHIRT STRONG BRAND VISIBILITY DURING UEFA EUROPEAN CHAMPIONSHIP 2024 5
Slide 6: Creating buzz on and off the pitch
CREATING BUZZ ON AND OFF THE PITCH DURING COPA AMERICA 2024
Slide 7: Great point of sale execution
GREAT POINT OF SALE EXECUTION INSTORE ACTIVATIONS ACROSS ALL CHANNELS WHOLESALE NYC FLAGSHIP STORE
Slide 8: The best teams in the best leagues
4-IN-A-ROW PREMIER LEAGUE CHAMPS CHAMPION LEAGUE FINALISTS THE BEST TEAMS IN THE BEST LEAGUES SUCCESSFUL SEASON 23/24 IN PREMIER LEAGUE AND CHAMPIONS LEAGUE 8
Slide 9: U.S. activation tour of Man City & AC Milan
U.S. ACTIVATION TOUR OF MAN CITY & AC MILAN STRONG ACTIVATION IN NEW YORK CITY FEATURING 3RD KIT FOR 2024/2025 ~37M VIEWS ON SPECIAL GUEST: INSTAGRAM RIHANNA
Slide 10: Main product newness: Ultra 5
MAIN PRODUCT NEWNESS: ULTRA 5 ELEVATED PRICE POINT (RRP: EUR 290) COMPLETELY SOLD OUT
Slide 11: Main product newness: Deviate Nitro Elite 3
MAIN PRODUCT NEWNESS: DEVIATE NITRO ELITE 3 STRONGEST SELL-THROUGH TO DATE WITH GREAT CONSUMER FEEDBACK RUNNERS NERD ALEX FILITTI RUNNING INFLUENCER WITH 2.5M VIEWS >150K FOLLOWERS
Slide 12: Great point of sale execution
GREAT POINT OF SALE EXECUTION CONTINUOUS FOCUS TO WIN IN RUNNING SPECIALTY ACCOUNTS
Slide 13: Our concept shoe: Fast Rule Breaker
OUR CONCEPT SHOE: FAST RULE BREAKER CONTINUOUS INVESTMENT IN INNOVATION PROJECTS 16.4M VIEWS ON SOCIAL MEDIA
Slide 14: Great performance of our athletes fueled by Nitro
6.25M 2.10M 10.72SEC 3:07MIN MONDO DUPLANTIS YAROSLAVA MAHUCHIKH JULIEN ALFRED ISAYA KLEIN IKKINK NEW WORLD & OLYMPIC RECORD CURRENT WORLD RECORD FASTEST WOMAN IN THE WORLD FASTEST MIXED RELAY FIRST FOUR GOLD MEDALS IN PARIS GREAT PERFORMANCE OF OUR ATHLETES FUELD BY NITRO 14
Slide 15: Building Nitro equity
BUILDING NITRO EQUITY MEDAL WINNING WITH NITRO DURING OLYMPICS 15
Slide 16: New global partnership with Hyrox
NEW GLOBAL PARTNERSHIP WITH HYROX ENGAGING WITH >200K PARTICIPANTS IN 25 COUNTRIES
Slide 17: Main product newness: 3D printed steel irons
MAIN PRODUCT NEWNESS: 3D PRINTED STEEL IRONS GREAT COMMERCIAL SUCCESS AT ELEVATED PRICE POINT (RRP: 3,000 USD) FIRST COMMERCIALLY AVAILABLE 3D PRINTED IRONES SOLD OUT
Slide 18: Puma players winning tournaments
JESPER SVENSSON EWEN FERGUSON FIRST WIN ON DP WORLD TOUR THIRD DP TOUR WIN PUMA PLAYERS WINNING TOURNAMENTS RECENT SUCCESS STORIES SHOWCASING STRONG BRAND PRESENCE 18
Slide 19: Puma drivers winning in F1
ANNOUNCEMENT COMING UP CHARLES LECLERC LEWIS HAMILTON GEORGE RUSSELL MONACO GP BRITAIN GP AUSTRIAN GP BELGIAN GP PUMA DRIVERS WINNING IN F1 RECENT GRAND PRIX SUCCESS STORIES SHOWCASING STRONG BRAND PRESENCE 19
Slide 20: Great buzz with Lewis Hamilton & George Russell
AT PUMA STORE LONDON GREAT BUZZ WITH LEWIS HAMILTON & GEORGE RUSSELL SILVERSTONE GRAND PRIX TAKEOVER WITH RAEBURN 20
Slide 21: Scoot Henderson on tour in China
SCOOT HENDERSON ON TOUR IN CHINA STRENGTHENING OUR PERFORMANCE PERCEPTION 21
Slide 22: Winning the next generation for Puma Hoops
WINNING THE NEXT GENERATION FOR PUMA HOOPS FIRST SEASON OF NXTPRO >1,100 TEAMS EQUIPPED > 11,000 PLAYERS
Slide 23: Main product newness in basketball
MAIN PRODUCT NEWNESS IN BASKETBALL CONTINUOUS INVESTMENT IN ON AND OFF THE COURT MB.04 LAFRANCÉ LAUNCHING IN SEPTEMBER 2024 LAUNCHED IN MAY 2024
Slide 24: Welcome to PUMA, Salehe Bembury!
WELCOME TO PUMA, SALEHE BEMBURY! INDUSTRY-FIRST APPROACH TO HOOPS
Slide 25: Making further progress: Sportstyle transition
SPORTSTYLE TRANSITION MAKING FURTHER PROGRESS
Slide 26: Ongoing momentum in family footwear
ONGOING MOMENTUM IN FAMILY FOOTWEAR WITH EXISTING AND NEW FRANCHISES CONTINUATION NEWNESS CAVEN CAVEN 2.0 MID CARINA PUMA CLUB REBOUND COURT CLASSIC NEW VERSION VOLTAIC PARK LIFESTYLE NEW VERSION ENZO SKYROCKET
Slide 27: Maximizing current terrace & skate trends
MAXIMIZING CURRENT TERRACE & SKATE TRENDS WITH EXISTING AND NEW FRANCHISES PALERMO SUEDE XL FENTY EASY RIDER
Slide 28: Further acceleration of Palermo
FURTHER ACCELERATION OF PALERMO STRONG INCREASE OF VOLUME SOLD THROUGH VERSUS Q1 2024
Slide 29: Further acceleration of Suede XL
FURTHER ACCELERATION OF SUEDE XL STRONG INCREASE OF VOLUME SOLD THROUGH VERSUS Q1 2024
Slide 30: Global launch of Easy Rider
GLOBAL LAUNCH OF EASY RIDER BRINGING FURTHER NEWNESS TO THE MARKET
Slide 31: Driving great brand awareness
DRIVING GREAT BRAND AWARENESS LEVERAGING RIHANNA’S REACH AND CULTURAL RELEVANCE 31
Slide 32: Building up the next trend
SPORTSTYLE BUILDING UP THE NEXT TREND
Slide 33: Focus on demand creation before commercialization
INCUBATE IGNITE MAXIMIZE FOR PAST CURRENT GREATER 12-18 MONTHS FOCUS VOLUME FOCUS ON DEMAND CREATION BEFORE COMMERCIALIZATION
Slide 34: Speedcat
SPEEDCAT SPEEDCAT SPEEDCAT
Slide 35: Highly successful pre-launch in Asia
HIGHLY SUCCESSFUL PRE-LAUNCH IN ASIA SPEEDCAT IMMEDIATELY SOLD OUT IN CHINA, SOUTH KOREA AND JAPAN
Slide 36: Highly successful pre-launch also in Europe
HIGHLY SUCCESSFUL PRE-LAUNCH ALSO IN EUROPE GREAT SELL-THROUGH SUCCESS IN WHOLESALE AND DTC SOLD OUT
Slide 37: Global ambassadors supporting key franchises
ROSÉ DUA LIPA GLOBAL AMBASSADORS SUPPORTING KEY FRANCHISES WELCOME TO THE PUMA FAM, ROSÉ! 37
Slide 38: A$AP Rocky taking over runway
A$AP ROCKY TAKING OVER RUNWAY MOSTRO AND INHALE AS FOCUS DURING PARIS FASHION WEEK
Slide 39: Focusing on bringing newness and innovation
TERRACE COURT/SKATE LOW PROFILE PROGRESSIVE PALERMO SUEDE XL SPEEDCAT INHALE EASY RIDER LA FRANCÉ MOSTRO INVERSE ARIZONA GV FOCUSING ON BRINGING NEWNESS AND INNOVATION CONTINUING TO BUILD TRACTION IN THE MARKETPLACE 39
Slide 40: New retail formats in China
SNEAKER BOX FIELD OF PLAY NEW RETAIL FORMATS IN CHINA FURTHER PROGRESS IN PILOTING AND ROLL-OUT OF NEW CONCEPTS 40
Slide 41: Main highlights
MAIN HIGHLIGHTS Q2 2024 FULLY IN LINE WITH EXPECTATIONS GAINING FURTHER MARKET SHARE IN PERFORMANCE CATEGORIES MAKING FURTHER PROGRESS WITH SPORTSTYLE TRANSITION DRIVING PROGRESS IN BRAND ELEVATION
Slide 42: Investing in our infrastructure for future growth
MEXICO CHILE U.S. INVESTING IN OUR INFRASTRUCTURE FOR FUTURE GROWTH ONGOING EFFORTS TO EXPAND DISTRIBUTION CENTERS AND PROGRESS IN ERP 42
Slide 43: Puma named among World's Most Sustainable Companies of 2024
PUMA NAMED AMONG “WORLD’S MOST SUSTAINABLE COMPANIES OF 2024” BY NEWS MAGAZINE TIME & STATISTA ONLY SPORTING GOODS BRAND IN TOP 500
Slide 44: Currency adjusted sales growth Q2 2024 vs last year
+2.1% CURRENCY ADJUSTED SALES GROWTH Q2 2024 VS LAST YEAR
Slide 45: Q2 2024 sales breakdown
Q2 2024 SALES BREAKDOWN SALES VS LAST YEAR (IN %, CURRENCY ADJUSTED) BY CHANNEL BY DIVISION BY REGION WHOLESALE -3.3% TOTAL DTC +19.5% FOOTWEAR +0.0% EMEA -4.3% BRICK & MORTAR +16.5% APPAREL +9.2% AMERICAS +9.0% E-COM +25.6% ACCESSORIES -4.7% APAC +1.9% TOTAL +2.1% TOTAL +2.1% TOTAL +2.1% TOTAL: EUR
Slide 46: H1 2024 sales breakdown
H1 2024 SALES BREAKDOWN SALES VS LAST YEAR (IN %, CURRENCY ADJUSTED) BY CHANNEL BY DIVISION BY REGION WHOLESALE -3.1% TOTAL DTC +16.7% FOOTWEAR +1.6% EMEA -2.2% BRICK & MORTAR +16.0% APPAREL +3.5% AMERICAS +5.1% E-COM +18.1% ACCESSORIES -4.0% APAC +1.2% TOTAL +1.3% TOTAL +1.3% TOTAL +1.3% TOTAL: EUR
Slide 47: Q2 2024 sales breakdown by market
Q2 2024 SALES BREAKDOWN QUARTERLY SALES BY MARKET VS LAST YEAR (IN %, CURRENCY ADJUSTED) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 EEA +23.4% +9.0% -1.4% -9.2% +4.9% -3.5% +2.7% EEMEA +33.5% +111.4% +63.6% +11.6% +52.0% +15.1% -23.2% NORTH AMERICA -18.6% -16.7% -12.4% -10.9% -14.7% -2.
Slide 48: Operating performance
Ne \ TANCE OPERATINC PERFOR
Slide 49: Q2 2024 operating performance
Q2 2024 OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) PUMA GROUP Q2 2023 Q2 2024 DEVIATION SALES 2,120.7 2,117.3 -0.2% (in EUR M) (+2.1% ca) GROSS PROFIT 949.8 990.6 +4.3% (in EUR M/ % of Sales) (44.8%) (46.8%) (+2.0% pts)
Slide 50: Q2 2024 operating performance
Q2 2024 OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) PUMA GROUP Q2 2023 Q2 2024 DEVIATION SALES 2,120.7 2,117.3 -0.2% (in EUR M) (+2.1% ca) GROSS PROFIT 949.8 990.6 +4.3% (in EUR M/ % of Sales) (44.8%) (46.8%) (+2.0% pts) Q1 Q2 CURRENCY EFFECTS ↓ ↓ SOURCING PRICES FREIGHT PROMOTI
Slide 51: Q2 2024 operating performance
Q2 2024 OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) PUMA GROUP Q2 2023 Q2 2024 DEVIATION SALES 2,120.7 2,117.3 -0.2% (in EUR M) (+2.1% ca) GROSS PROFIT 949.8 990.6 +4.3% (in EUR M/ % of Sales) (44.8%) (46.8%) (+2.0% pts) OPEX* -834.5 -873.4 -4.7% (in EUR M/ % of Sales) (-39.3%)
Slide 52: Q2 2024 operating performance
Q2 2024 OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) PUMA GROUP Q2 2023 Q2 2024 DEVIATION SALES 2,120.7 2,117.3 -0.2% (in EUR M) (+2.1% ca) GROSS PROFIT 949.8 990.6 +4.3% (in EUR M/ % of Sales) (44.8%) (46.8%) (+2.0% pts) OPEX* -834.5 -873.4 -4.7% (in EUR M/ % of Sales) (-39.9%)
Slide 53: Q2 2024 operating performance
Q2 2024 OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) PUMA GROUP Q2 2023 Q2 2024 DEVIATION SALES 2,120.7 2,117.3 -0.2% (in EUR M) (+2.1% ca) GROSS PROFIT 949.8 990.6 +4.3% (in EUR M/ % of Sales) (44.8%) (46.8%) (+2.0% pts) OPEX* -834.5 -873.4 -4.7% (in EUR M/ % of Sales) (-39.3%)
Slide 54: H1 2024 operating performance
H1 2024 OPERATING PERFORMANCE SUMMARY – VS LAST YEAR (REPORTED CURRENCY) PUMA GROUP H1 2023 H1 2024 DEVIATION SALES 4,308.3 4,219.6 -2.1% (in EUR M) (+1.3% ca) GROSS PROFIT 1,966.8 1,989.6 +1.2% (in EUR M/ % of Sales) (45.7%) (47.2%) (+1.5% pts) OPEX* -1,675.9 -1,713.4 -2.2% (in EUR M/ % of Sales) (
Slide 55: Balance sheet KPIs
BALANCE SHEET KPIS VS LAST YEAR (IN EUR M, REPORTED CURRENCY) PUMA GROUP 30 JUN 2023 30 JUN 2024 DEVIATION INVENTORIES 2,145.9 1,961.1 -8.6% TRADE RECEIVABLES 1,348.4 1,394.7 +3.4% TRADE PAYABLES 1,457.3 1,647.9 +13.1% WORKING CAPITAL 1,693.0 1,643.7 -2.9% CASH & CASH EQUIVALENTS 307.9 271.8 -11.7%
Slide 56: Sales & EBIT in line with expectations
SALES & EBIT IN LINE WITH EXPECTATIONS STRONG GROSS PROFIT MARGIN IMPROVEMENT STRONG CASH FLOW IMPROVEMENT
Slide 57: Outlook
OUTLOOK
Slide 58: Continued challenging market environment
CONTINUED CHALLENGING MARKET ENVIRONMENT OUR ASSUMPTION FOR H2 2024 GEO-POLITICAL CONFLICTS MUTED CONSUMER SENTIMENT NO SIGNIFICANT IMPROVEMENT ONGOING ADVERSE CURRENCY CONTINUE TO WEIGHT ON STRESSED FREIGHT MARKET IN CHINA OF CONSUMER SENTIMENT IN EFFECTS SENTIMENT EUROPE & NORTH AMERICA
Slide 59: Delivering on our outlook
DELIVERING ON OUR OUTLOOK SALES VS LAST YEAR (IN %, CURRENCY ADJUSTED) - Illustrative chart - ORDER BOOK +2.1% +0.5% Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 INDICATION FLAT + 2-3% MSD DD MSD RESULT
Slide 60: Q3 & Q4 sales phasing
Q3 & Q4 SALES PHASING IN EUR M / AS REPORTED / INDICATIVE CHARTS Q3 Q4 MSD GROWTH CURRENCY ADJUSTED DD SALES GROWTH CURRENCY ADJUSTED 2,311 -4% CURRENCY ADJUSTED 2,197 1,982 Q3 2023 Q3 2024 E Q4 2022 ORGANIC IMPROVEMENT IMPACT OF ARS DEVALUATION Q4 2023 NON-RECURRING IMPACT OF ARS SALES GROWTH Q4 20
Slide 61: Q3 & Q4 EBIT phasing
Q3 & Q4 EBIT PHASING IN EUR M / AS REPORTED / INDICATIVE CHARTS Q3 1.7 Q4 EBIT SLIGHTLY BELOW OR AT PREVIOUS YEAR’S LEVEL 236 > +40% +133% 94 41 Q3 2023 Q3 2024 E Q4 2022 ORGANIC IMPROVEMENT IMPACT OF ARS DEVALUATION Q4 2023 NON-RECURRING IMPACT OF ARS ORGANIC IMPROVEMENT Q4 2024 E DEVALUATION
Slide 62: Q3 & Q4 net income phasing
Q3 & Q4 NET INCOME PHASING IN EUR M / AS REPORTED / INDICATIVE CHARTS Q3 Q4 NET INCOME CHANGE IN LINE WITH EBIT NET INCOME 132 CHANGE STRONGER THAN EBIT 1 1 Q3 2023 Q3 2024 E Q4 2022 ORGANIC IMPROVEMENT IMPACT OF ARS DEVALUATION Q4 2023 NON-RECURRING IMPACT OF ARS ORGANIC IMPROVEMENT Q4 2024 E DEVAL
Slide 63: Outlook for 2024
OUTLOOK FOR 2024 SALES, EBIT & NET INCOME OUTLOOK FY 2023 OUTLOOK 2024 SALES 8,602 MID SINGLE-DIGIT GROWTH (IN EUR M) (REPORTED CURRENCY) (CURRENCY-ADJUSTED) EBIT 622 BETWEEN 620 – 670 MILLION (IN EUR M / % OF SALES) (7.2%) PREVIOUSLY: 620 – 700 MILLION (REPORTED CURRENCY) NET INCOME 305 CHANGE VS ’
Slide 64: Building the foundation for growth based on brand desirability
BUILDING THE FOUNDATION FOR GROWTH BASED ON BRAND DESIRABILITY BRAND CAMPAIGN PROVIDED BEST EVER VISIBILITY DURING EURO, COPA & NOW OLYMPICS 64
Slide 65: Focus on bringing newness and innovation
TERRACE COURT/SKATE LOW PROFILE PROGRESSIVE PERFORMANCE PALERMO SUEDE XL SPEEDCAT INHALE ULTRA EASY RIDER LA FRANCÉ MOSTRO INVERSE DEVIATE ARIZONA GV MB.04 FOCUS ON BRINGING NEWNESS AND INNOVATION CONTINUING TO BUILD TRACTION IN THE MARKETPLACE 65
Slide 66: Strong order book, ongoing momentum
STRONG ORDER BOOK ONGOING MOMENTUM TO ACCELERATE WHOLESALE SELL-IN IN DTC 66
Slide 67: Progress in strategic focus markets
PROGRESS IN STRATEGIC FOCUS MARKETS CONTINUING GROWTH IN SOFT CHINESE ENVIRONMENT & RETURNING TO GROWTH IN THE U.S.
Slide 68: All eyes on Paris
FOOTBALL BASKETBALL / HANDBALL TRACK & FIELD / RUNNING SPRINT JUMP DISTANCE ~ 450 PUMA ATHLETES ~ 70 RETAILERS 17 TRACK & FIELD FEDERATIONS OLYMPICS & PARALYMPICS JOINING THE GOLD DAYS EVENT SPONSORED BY PUMA ALL EYES ON PARIS STRONG ACTIVATION WITH OUR PARTNERS 68
Slide 69: We are the challenger
WE. ARE THE CHALLENGER
Slide 70: Q&A
Q&A