PUMA’s Q1 2024 financial report, unveiled on Wednesday, showed resilience in the face of market challenges despite a decline in sales for the three-month period ending March 31.
The renowned German sportswear brand reported revenues of €2.1 billion EUR, surpassing analysts’ expectations of €2.09 billion EUR, albeit with a 3.9% decrease compared to the previous year’s figures. In terms of currency adjustments, sales saw a modest increase of 0.5%.
“Despite ongoing market volatility, we achieved growth and improvements in gross profit margin, despite significant currency fluctuations and challenging comparisons with the previous year,” noted Arne Freundt, PUMA’s CEO.
Regionally, PUMA experienced a 3.2% decline in sales to €855.7 million EUR in Europe, the Middle East, and Africa, with Europe exceeding anticipated figures. In the Asia-Pacific region, sales dipped by 4.1% to €456.6 million EUR, but after currency adjustments, there was a slight uptick of 0.6%, largely driven by growth in Greater China. Meanwhile, sales in the Americas dropped by 4.6% to €790 million EUR. However, in currency-adjusted terms, the region saw a 1% increase in sales.
PUMA’s wholesale business saw a 2.9% decrease to €1.6 billion EUR, as the brand prioritizes “good sell-through” and “prudent sell-in” strategies to enhance inventory levels, a shift expected to materialize in the second quarter of the year. Conversely, the company’s direct-to-consumer segment experienced a notable 13.5% increase, attributed to sustained brand momentum and reduced promotional activities.
Looking forward, Freundt emphasized, “Our focus is on laying the groundwork for future growth by enhancing brand desirability. The launch of our first brand campaign in a decade marked a significant initial step, surpassing our expectations. In the 2024 Year of Sport, there could not be a better time to propel PUMA’s brand elevation journey.”
