Puma's Q1 sales and earnings up, maintains outlook

Puma’s first quarter sales increased by 19.7 percent currency adjusted (ca) and by 23.5 percent reported to 1,912.2 million euros.

The company said in a statement that Americas reported the strongest sales growth of 44.1 percent ca, driven by continued high demand for the Puma brand in the North American and Latin American markets. Sales in EMEA were up 25.5 percent ca, reflecting strong growth across all key markets in Europe.

Sales in Asia/Pacific declined 17 percent ca due to the current market environment in Greater China resulting from Covid-19 related restrictions and geopolitical tensions.

Commenting on the results, Bjorn Gulden, CEO of Puma SE said: “Despite all the obstacles and uncertainties, we achieved a sales growth of 20 percent to 1,912 million euros and an EBIT growth of 27 percent to 196 million euros in the first quarter. Based on such a strong first quarter, we would normally raise our outlook for the full year. But given the increased uncertainty in the world, we have decided to stick to our initial outlook from the beginning of this year.”

Review of Puma’s first quarter results

The company added that all product divisions grew double-digit with footwear being up 18.2 percent ca, apparel 16 percent ca and accessories 32.2 percent ca. The growth was driven by a strong demand for performance categories like running & training, teamsports, golf and basketball, as well as for the sportstyle category.

Puma’s wholesale business increased by 23.3 percent ca to 1,528.2 million euros and the direct-to-consumer (DTC) business was up by 7.1 percent ca to 384 million euros. Sales in the company-owned & operated retail stores increased 21.3 percent ca while e-commerce declined 13.2 percent ca.

The gross profit margin declined by 130 basis points to 47.2 percent, while the operating result (EBIT) increased by 27 percent to 196 million euros. Net earnings increased from 109.2 million euros to 121.4 million euros and earnings per share were up by 11.1 percent from 0.73 euros in the first quarter of 2021 to 0.81 euros in the first quarter of 2022.

Puma maintains full year outlook

Despite the increasing uncertainties in 2022, the company has confirmed a currency-adjusted sales growth of at least 10 percent – with upside potential – in the financial year 2022.

In line with its previous outlook, Puma anticipates operating result (EBIT) to be in a range of 600 million euros and 700 million euros and net earnings to improve correspondingly.

The company expects inflationary pressures from higher freight rates and raw material prices, as well as operational inefficiencies due to Covid-19 and the Ukraine crisis to dilute profitability in 2022.