Despite Q1 Sales Dip, Puma Confirms Full-Year Guidance

Puma sales dipped 3.9 percent over the first quarter of this year to 2.1 billion euros. When adjusted for currency effects, sales grew 0.5 percent.

“Currencies have continued to be a major headwind,” the company said in a statement, quantifying the impact at approximately 100 million euros.

“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,” said Puma‘s chief executive officer Arne Freundt.

The company’s operating expenses had fallen in the first quarter, inventory levels improved and costs like freight were also down, he explained.

Revenues in Europe, the Middle East and Africa fell 3.2 percent to 855.7 million euros. In the Americas, sales fell 4.6 percent to bring in 790 million euros and in Asia-Pacific, they dropped by 4.1 percent to 456.6 million euros. In currency adjusted terms, this translated to small increases in the Americas of 1 percent, and 0.6 percent in Asia-Pacific.

Footwear sales rose 3.1 percent, currency adjusted, to hit 1.18 billion euros. Apparel fell by 2.4 percent to 608.1 million euros, while accessory sales decreased 3.2 percent to 312.7 million euros.

EBIT dipped 9.4 percent and stood at 159 million.

Despite the flattish results, the German activewear maker confirmed guidance for the year. It predicts “geopolitical and macroeconomic headwinds as well as currency volatility to persist in 2024 … particularly in the first half of the year.”

For all of 2024, Puma still expects sales revenues to grow in the mid-single digits and EBIT to come in between 620 million and 700 million euros.