PUMA Beats Q1 Market Expectations, Despite Reporting Decrease in Sales

PUMA released its Q1 2024 financial report on Wednesday, revealing that it had surpassed market expectations, despite recording a fall in sales in the three-month period ending March 31.

The German sportswear brand reported revenues of €2.1 billion EUR, beating analysts' estimates of €2.09 billion EUR with a 3.9% decrease from the same figures in 2023. In currency-adjusted terms, sales were up 0.5%.

"While the market continues to be volatile, we delivered growth and gross profit margin improvement despite significant currency headwinds and high prior year comparables," said Arne Freundt, chief executive officer at PUMA.

On a regional basis, PUMA saw sales fall by 3.2% to €855.7 million EUR in Europe, the Middle East and Africa, with Europe tallying higher numbers than expected. In Asia-Pacific, sales were down 4.1% at €456.6 million EUR; but with currencies adjusted, the figures reflected a 0.6% increase, majorly due to growth in Greater China. In the Americas, sales decreased by 4.6% to €790 million EUR. In currency-adjusted terms, sales in the region were up 1%.

PUMA's wholesale business fell by 2.9% to €1.6 billion EUR, as the brand continues to focus on "good sell-through" and "prudent sell-in" to improve its inventory levels, which the label expects will occur in the second quarter of this year. The company's direct-to-consumer business, meanwhile, was up 13.5%, thanks to "continued brand momentum and scaled back promotions."

Looking ahead, Freundt added, "We are focusing our efforts on building the foundation for the next chapter of growth based on increased brand desirability. The launch of our first brand campaign in a decade was an important first step and the first results came in above our expectations. I could not imagine a better year than the 2024 Year of Sport to advance PUMA’s brand elevation journey."

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