Puma reports marginal first quarter sales growth
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Puma Puma sales increased by 0.5 currency adjusted to 2,102.3 million euros in the first quarter.
Supported by the continued brand momentum and despite ongoing geopolitical and macroeconomic challenges, Puma expects to achieve mid-single-digit currency-adjusted sales growth and an operating result (EBIT) in the range of 620 million euros to 700 million euros for the financial year 2024 and net income to change in 2024 in line with the operating result.
Commenting on the first quarter performance, Arne Freundt, chief executive officer of Puma SE said in a statement: “While the market continues to be volatile, we delivered growth and gross profit margin improvement despite significant currency headwinds and high prior year comparables. With our good order book for the second half of the year and the great start of our brand campaign, I feel very confident about our sequential quarter-over-quarter improvement in 2024.”
Highlights of Puma’s Q1 results
The company said that the Americas region recorded positive sales growth for the first time in four quarters, growing by 1 percent to 790 million euros, with the US showing a sequential improvement. Sales in the Asia/Pacific region increased by 0.6 percent to 456.6 million euros, driven by continued growth in Greater China. In the EMEA region, sales were flat at 855.7 million euros.
Puma's wholesale business declined by 2.9 percent to 1,608.1 million euros, while direct-to-consumer (DTC) business grew by 13.5 percent to 494.2 million euros.
Sales in footwear were up 3.1 percent, largely driven by continued strong demand for football and other performance categories, while sales in apparel and accessories declined by 2.4 percent and 3.2 percent, respectively.
The gross profit margin improved by 100 basis points to 47.5 percent, the operating result (EBIT) decreased by 9.4 percent to 159 million euros. As a result, the EBIT margin declined 50 basis points to 7.6 percent. The financial result decreased to 26.8 million euros and net income decreased by 25.5 percent to 87.3 million euros, while earnings per share declined to 0.58 euros.