“We delivered our first quarter results fully in line with expectations. While the market continues to be volatile, we delivered growth and gross profit margin improvement despite significant currency headwinds and high prior-year comparables. Our retail partners are still working through elevated stock levels, but as our sell-through was higher than our sell-ins, we jointly improved the inventory levels in the wholesale channel. We expect that we will improve sell-in in course of Q2. Our double-digit growth in DTC with fewer discounts confirms the continued strong demand for the brand and thus continued good sell-through”, commented Arne Freundt, Chief Executive Officer of Puma.

First Quarter Results

In the first quarter of 2024, the company’s sales reached 2.10 billion euros, an increase of 0.5% on a constant currency basis (cc), as compared to the same period last year. Since the second quarter of 2023, the currency has continued to be a significant headwind, negatively impacting sales in euro terms by approximately 100 million euros in this period (down by 3.9% as reported).

In the Americas region, Puma’s first quarter sales grew by 1.0% (cc) year-over-year to 790 million euros, “with the U.S. showing a sequential improvement”, and in the Asia Pacific region sales rose by 0.6% (cc) year-over-year to 456.6 million euros, driven by the performance in China. Meanwhile, in the EMEA region, sales were flat at 855.7 million euros.

From a channel perspective, the wholesale business contributed 1.60 million euros to the company’s first quarter sales, a decrease of 2.9% (cc) on a comparable basis to the same period of 2023, due to “the continued focus on good sell-through and prudent sell-in to improve inventory levels in the market”. On the other hand, direct-to-consumer sales increased by 13.5% (cc) year-over-year to 494.2 million euros.

“Driven by continued strong demand for our Football and other performance categories”, the footwear segment grew by 3.1% (ca) in the first quarter of the current fiscal, as compared to the same quarter of last year, while apparel and accessories sales declined by 2.4% (ca) and 3.2% (ca), respectively.

In the three months that ended in March, Puma’s gross profit margin improved by 100 basis points to 47.5% from a similar period of the previous year, as “headwinds from currencies were more than offset by lower sourcing and freight costs as well as a favourable product and distribution channel mix”. 

Puma’s first quarter EBIT totalled 159.0 million euros, down by 9.4% on a comparable basis to the same prior year period, resulting in a 50-basis point EBIT margin decline to 7.6%.

Consequently, in the first quarter of the current fiscal year, the sports company reported a net income of 87.3 million euros and earnings per share of 0.58 euros, as compared to a net income of 117.3 million euros and earnings per share of 0.78 euros recorded in the first quarter of 2023.

Full Year Outlook

“The year 2024 has started with geopolitical and macroeconomic challenges, as well as currency volatility. In this environment, we continued to make further progress on our strategic priorities of brand elevation, product excellence and distribution quality, particularly in the key markets U.S. and China”, says the company.

Therefore, Puma still expects to achieve mid-single-digit currency-adjusted sales growth and an operating result (EBIT) in the range of 620 million to 700 million euros for the financial year 2024 (2023: 621.6 million euros).