The sporting goods manufacturer Puma started the new year with double-digit growth rates. However, higher costs and discounts weighed on the result.
Puma confirmed the outlook for the year. Sales in the second quarter are only likely to grow in the low to mid single-digit percentage range due to the current reduction in high inventories in retail, as the company announced on Wednesday in Herzogenaurach. For the full year, Puma continues to forecast currency-adjusted sales growth in the high single-digit percentage range.
First growth in China in two years
In the first quarter, sales rose by 14.4 percent to almost 2.2 billion euros. Adjusted for currency effects, the increase was of the same magnitude. The European region EMEA was the growth driver, while sales in North America fell. In China, Puma returned to growth for the first time in two years.
Earnings before interest and taxes (EBIT) fell by 10.5 percent to around 176 million euros, which was slightly better than analysts had expected. Puma continues to forecast a range of 590 million to 670 million euros for 2023. The bottom line is that Puma earned 3.5 percent less in the first quarter with 117.3 million euros. The new boss Arne Freundt described 2023 as a “year of transition”.
Puma won back the musician Rihanna for a collaboration in 2023 and wants to launch products for children and unisex collections together with her. In addition, the English national soccer player Jack Grealish (Manchester City) has entered into a long-term partnership with Puma. (dpa)