PUMA unveiled its Q1 2024 financial results, surpassing market projections despite a decline in sales for the period ending March 31.
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.
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.”
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%.
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.
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.
