From Fortune:

African Brand Growth

Puma is targeting the African continent, where its revenue has more than tripled in three years. This focus is largely attributed to the popularity of sportswear among African Gen Zers and a partnership with the Confederation of African Football.

African Sportswear Demand

Billions of young Africans are driving the demand for sportswear on the continent, reflecting a strong global casualization trend. But Puma’s focus on Africa is also linked to a decline in physical activity, a trend that tech-savvy Generation Zers are shunning in the region.

Sports Driving Demand

Soccer, as well as brand partnerships and pop-up stores, are the main drivers of this strong sportswear demand in Africa according to Puma, whose biggest and fastest-growing market is the EMEA region.

Casual vs. Active Wear

Causalization and partnerships are key trends on the rise, but some are concerned that this growth in sportswear may be an outgrowth of declining physical activity among Africa’s young people.

Puma’s Financial Woes

Puma is facing financial headwinds with sales growth at only 2.9%, partly due to a lack of demand for sports apparel and a decline in the company’s footwear sales.

Long-Term Outlook

Puma however remains optimistic for the long run, given a potential decline in casual wear and evidence of heightened sports activity.



Read more: Puma betting on Africa’s Gen Zers and ‘casualization’ to boost growth