Puma has confirmed its full-year outlook after reporting a 14.4 percent increase in sales in the first quarter as it saw recovery in its China market.
The German sportswear giant made sales of 2.19 billion euros in Q1, with sales in the EMEA region up 25.4 percent on a constant currency basis, and sales in Asia/Pacific sales up 27.4 percent thanks in part to a return to growth in Greater China for the first time in two years.
On a less bright note, sales in the Americas fell 0.8 percent on a constant currency basis due to a drop in sales in North America and despite continued “strong growth” in Latin America.
Puma said its North America market was impacted by “lower sell-in to the wholesale distribution channel, particularly to off-price retailers, as a result of high inventory levels in the market”.
The company’s net income for the quarter fell to 117.3 million euros from 121.4 million euros a year earlier.
Based on its first quarter results, Puma confirmed its full-year outlook. It expects high single-digit percentage currency-adjusted sales growth and EBIT of between 590 million euros and 670 million euros, compared to EBIT of 641 million euros the prior year.
“Our Q1 growth was a strong start to 2023,” Puma CEO Arne Freundt told investors, but noted that, in line with expectations, the year has begun with “pressure on gross profit margin and profitability”.
“For the second quarter, we expect low to mid single-digit sales growth due to high inventory levels in the trade and continued headwinds in the market,” he said.