2024-02-27 19:29:46
Puma, the German clothing, shoe and sporting goods company, announced on Tuesday that net income in the fourth quarter fell by 42.3% to 800 thousand euros from 1.4 million euros the previous year.
The Boycott Israel Movement (BDS) had called for a boycott of Puma for concluding a sponsorship contract with the Israeli football teams, and calls for a boycott were renewed following the aggression on the Gaza Strip.
Earnings per share reached 0.01 euros, the same as the previous year. The decline in net income primarily reflects weak financial results.
However, operating results, or earnings before interest and taxes, jumped by 133% to 94.4 million euros from 40.5 million euros the previous year, according to media outlets.
The improvement was achieved through gross profit margin and strict cost discipline. Earnings before interest and taxes (EBIT) margin also improved to 4.8% from 1.8% the previous year.
Puma Group sales fell by 9.8% to 1.98 billion euros. In constant currency, sales fell by 4%.
On December 12, Puma announced the end of its sponsorship of the Israeli national team next year, and said that the decision was taken before the aggression on Gaza.
The company claimed that the decision was made in 2022 as part of its new strategy, which is in line with the timelines for designing and developing the team’s shirts.
Puma revealed that it will be a sponsor of two new teams that will be revealed later, and it also said that it will end its partnership with the Serbian national team as well.
1709068591
#significant #decline #profits #Puma #sponsor #Israeli #national #team
