Puma Sticks to Full-Year Profit Forecast Despite Drop in Q3 Earnings 

Products of the Puma brand are on display at a store of the largest Russian sports retailer Sportmaster, in Moscow, Russia, 19 October 2023. (EPA)
Products of the Puma brand are on display at a store of the largest Russian sports retailer Sportmaster, in Moscow, Russia, 19 October 2023. (EPA)
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Puma Sticks to Full-Year Profit Forecast Despite Drop in Q3 Earnings 

Products of the Puma brand are on display at a store of the largest Russian sports retailer Sportmaster, in Moscow, Russia, 19 October 2023. (EPA)
Products of the Puma brand are on display at a store of the largest Russian sports retailer Sportmaster, in Moscow, Russia, 19 October 2023. (EPA)

Shares in German sportswear brand Puma were expected to rise on Tuesday after it stood by its full-year profit forecast despite an 8.3% drop in its third-quarter earnings caused in part by a stronger euro.

Puma said it still expected "strong improvement in profitability" in the fourth quarter helped by lower marketing, sourcing and freight costs, despite a gloomy backdrop for consumer demand. Shares in Puma were expected to rise around 3%.

"While the market continues to experience significant macroeconomic headwinds and 2023 remains a transition year, we outgrew the market," Puma CEO Arne Freundt said in a statement.

Sportswear giant Nike had also flagged negative currency exchange effects in September.

Puma reported an operating profit of 236.3 million euros ($252.3 million) for the quarter, down from 257.7 million a year earlier. The company confirmed its target for an annual operating profit of between 590 million and 670 million euros.

Puma, which gets most of its revenues through wholesale, said its wholesale business increased by 3.1% in currency-adjusted terms, while sales from its own stores and websites grew by 17.4%.

Puma had taken shelf space in shops from Adidas and Nike when those two brands were pulling back from the wholesale channel to focus on their own stores, UBS analyst Zuzanna Pusz said, but now that the two bigger companies were turning their focus back onto wholesale, competition was more intense.

"Puma is a great company, but I'm just aware of the fact the industry dynamics are changing for them," she said.



80-year-old LL Bean Staple Finds New Audience as Trendy Bag

Gracie Wiener poses with some of her tote bags in Washington Square Park in New York, Wednesday, July 17, 2024, (AP Photo/Pamela Smith)
Gracie Wiener poses with some of her tote bags in Washington Square Park in New York, Wednesday, July 17, 2024, (AP Photo/Pamela Smith)
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80-year-old LL Bean Staple Finds New Audience as Trendy Bag

Gracie Wiener poses with some of her tote bags in Washington Square Park in New York, Wednesday, July 17, 2024, (AP Photo/Pamela Smith)
Gracie Wiener poses with some of her tote bags in Washington Square Park in New York, Wednesday, July 17, 2024, (AP Photo/Pamela Smith)

L.L. Bean created it 80 years ago to haul heavy blocks of ice. Now it's a must-have summer fashion accessory, The Associated Press reported.

The simple, sturdy canvas bag called the Boat and Tote is having an extended moment 80 years after its introduction, thanks to a social media trend in which they're monogrammed with ironic or flashy phrases.

New Yorker Gracie Wiener helped get it started by ordering her humble bags from L.L. Bean monogrammed with “Psycho” and then “Prada,” the pricey Italian luxury brand, instead of just her name or initials, and posting about them on Instagram. Then others began showcasing their own unique bags on TikTok.

Soon, it wasn’t enough to have a bag monogrammed with “Schlepper,” “HOT MESS,” “slayyyy” or “cool mom.” Customers began testing the limits of the human censors in L.L. Bean’s monogram department, which bans profanity “or other objectionable words or phrases,” with more provocative wording like “Bite me,” “Dum Blonde” and “Ambitchous.”

Social media fueled the surge, just as it did for Stanley’s tumblers and Trader Joe’s $2.99 canvas bags, which were once selling on eBay for $200, said Beth Goldstein, an analyst at Circana, which tracks consumer spending and trends.
The tote’s revival came at a time when price-conscious consumers were forgoing expensive handbags, sales of which have weakened, and L.L. Bean’s bag fit the bill as a functional item that’s trendy precisely because it’s not trendy, she said. L.L. Bean's regular bags top out at about $55, though some fancier versions cost upward of $100.
“There’s a trend toward the utilitarian, the simple things and more accessible price points,” she said, and the customization added to the appeal: “Status items don’t have to be designer price points.”

L.L. Bean’s tote was first advertised in a catalog as Bean’s Ice Carrier in 1944 during World War II, when ice chests were common. Then they disappeared before being reintroduced in 1965 as the Boat and Tote.

These days, they’re still made in Maine and are still capable of hauling 500 pounds of ice, but they are far more likely to carry laptops, headphones, groceries, books, beach gear, travel essentials and other common items.

Those snarky, pop-oriented phrases transformed them into a sassy essential and helped them spread beyond Maine, Massachusetts’ Cape Cod and other New England enclaves to places like Los Angeles and New York City, where fashionistas like Gwyneth Paltrow, Reese Witherspoon and Sarah Jessica Parker are toting them — but not necessarily brandished with ironic phrases.

“It’s just one of those things that makes people smile and makes people laugh, and it’s unexpected,” said Wiener, who got it all started with her @ironicboatandtote Instagram page, which she started as a fun side hustle from her job as social media manager for Air Mail, a digital publication launched by former Vanity Fair Editor-in-Chief Graydon Carter.

The folks at L.L. Bean were both stunned and pleased by the continuing growth. For the past two years, the Boat and Tote has been L.L. Bean’s No. 1 contributor to luring in new customers, and sales grew 64% from fiscal years 2021 to 2023, spokesperson Amanda Hannah said.

The surge in popularity is reminiscent of L.L. Bean’s traditional hunting shoe, the iconic staple for trudging through rain and muck, which enjoyed its own moment a few years back, driven by college students.