Sportswear companies like Adidas, Nike, and Puma are having to work harder to convince cash-strapped shoppers to buy sneakers, tracksuits and hoodies.

Puma's new marketing push, launching in April, comes after it has struggled to build brand strength over the past few years, Puma CEO Arne Freundt told reporters at the company's headquarters in Herzogenaurach.

Selling to more upmarket retailers, creating more products tailored to specific markets, and focusing on fewer, higher-profile, brand ambassadors are among the ways Puma is trying to boost its image.

The sportswear maker in 2023 started a second partnership with pop star Rihanna, as well as signing rapper A$AP Rocky and footballer Jack Grealish among others.

Puma's shares have lagged Nike and Adidas over the past year, dragging the company's valuation down.

Commenting on the group's share price performance, Puma chair Héloise Temple-Boyer said in the annual report: "I am convinced that it does neither reflect the actual value of our company nor the good operating performance."

Stifel analyst Cedric Lecasble said a share buyback could be one way for Puma to boost investor sentiment.

"The shares have suffered a lot and the balance sheet is strong," Lecasble said, adding that a buyback, if it happens, could be in the hundreds of millions of euros.

Puma's fourth-quarter sales in the Europe, Middle East and Africa (EMEA) region dropped 5.2% to 667.9 million euros, a sharp reversal after a 9.9% year-on-year increase in the third quarter.

Puma said the slowdown was due to retailers in the region having excess stock. Puma makes most of its sales through retail partners, though revenue from its own stores has grown.

Currency-adjusted sales in the Americas fell by 6.4% to 846 million euros ($918.5 million), hit by a slump in the value of the Argentine peso. The devaluation will continue to weigh on profitability in the first half, Puma said.

Asia-Pacific, the only region that grew in the fourth quarter, saw sales rise 2.8% on a currency-adjusted basis to 468.3 million euros, led by strong growth in the Greater China region and India.

Freundt said he expected disproportionate growth in China this year, and saw the U.S. market resuming growth in the second half.

Overall, Puma's footwear sales grew by 12.4% in 2023 while apparel sales dipped 0.3% as shoppers prioritize shoes.

Puma reiterated its 2024 forecast for mid-single-digit percentage growth in currency-adjusted sales, and earnings before interest and tax of 620 million to 700 million euros. The company is set to host analysts and investors for a capital markets day on February 29 and March 1. ($1 = 0.9211 euros)