📈 Adidas Takes the Lead
Adidas ended 2024 on a high, with Q4 revenues jumping 24% to €5.97B ($6.2B). Excluding Yeezy sales, revenues still rose 18%. CEO Bjørn Gulden credited consumer interest in retro styles, like Samba sneakers, and strong global demand. Operating profit hit €57M ($62.2M), reversing a loss from Q4 2023.
📉 Puma's Rough Patch
Puma's Q4 sales grew 9.8%, falling short of the 12% analysts had expected. The company reported a 7.5% drop in net profit to €282M ($293M) for 2024. Its shares dropped 18% on January 23, hitting their lowest level since 2018. Rising competition from On Running and Hoka also eroded its market share.
⚖️ Contrast in Strategies
Puma focused on launching its Speedcat sneakers but struggled to gain traction. Adidas, meanwhile, thrived on nostalgia, with retro lines boosting sales. Adidas’ gross margin improved to 49.8%, while Puma launched a cost-cutting program to target an 8.5% EBIT margin by 2027, up from 7.1% in 2024.
🔮 What Lies Ahead
Adidas aims for double-digit growth in 2025 despite economic uncertainty. Puma plans to share its full-year guidance on March 12. With Adidas’ stellar performance and Puma’s setbacks, the battle for dominance in the $400B sportswear market continues to heat up.
Is Puma falling too far behind Adidas in the sportswear race?
