PUMA unveiled its Q1 2024 financial results, surpassing market projections despite a decline in sales for the period ending March 31.
PUMA’s Revenue Exceeds Expectations Amidst Currency Adjustments and Market Challenges
The renowned German sportswear brand reported revenues of €2.1 billion EUR, exceeding analysts’ forecasts by €2.09 billion EUR, albeit with a 3.9% drop compared to the previous year’s figures. However, in terms of currency adjustments, sales experienced a 0.5% increase.
CEO Arne Freundt Highlights Growth and Improved Profit Margins in Volatile Markets
Arne Freundt, PUMA’s CEO, commented, “Despite significant currency challenges and tough year-on-year comparisons, we achieved growth and improved gross profit margins in a volatile market environment.”
Regional Sales Performance: Europe and Asia-Pacific Show Resilience Despite Declines
Regionally, sales in Europe, the Middle East, and Africa declined by 3.2% to €855.7 million EUR, though Europe performed better than anticipated. In Asia-Pacific, sales dropped by 4.1% to €456.6 million EUR; however, currency-adjusted figures showed a 0.6% rise, primarily driven by growth in Greater China. Meanwhile, sales in the Americas dipped by 4.6% to €790 million EUR, but on a currency-adjusted basis, they increased by 1%.
Strategic Shifts: Wholesale Decline and Direct-to-Consumer Growth Drive PUMA’s Success
PUMA’s wholesale business decreased by 2.9% to €1.6 billion EUR, as the brand prioritizes strategic inventory management. Conversely, the direct-to-consumer segment saw a notable 13.5% growth, attributed to sustained brand momentum and reduced promotional activities.
Future Outlook: PUMA’s New Brand Campaign and 2024 Year of Sport Boost Optimism
Looking forward, Freundt emphasized the company’s commitment to enhancing brand desirability, citing the recent launch of its first brand campaign in a decade as a promising start. He expressed optimism for the brand’s future growth prospects, particularly in light of the 2024 Year of Sport.
