PUMA Q1 2024 Earnings: In Line with Expectations Despite Challenging Market Conditions

PUMA SE reported its first quarter results for 2024, stating a slight currency-adjusted sales increase of 0.5% reaching €2,102 million, despite a substantial negative currency impact. The sports apparel and footwear giant reaffirmed its full-year outlook, expecting mid-single-digit sales growth and an operating result between €620 million and €700 million.

The company's gross profit margin saw an improvement, climbing 100 basis points to 47.5%. This growth comes amidst significant currency headwinds which also contributed to a 9.4% decline in operating results (EBIT), landing at €159 million. PUMA's advancements in direct-to-consumer sales, which grew by 13.5%, were shadowed by a 2.9% decline in their wholesale business, reflecting a strategic focus on maintaining healthy inventory levels in response to ongoing high stock levels with retail partners.

CEO Arne Freundt highlighted the brand's resilience in overcoming market fluctuations and outlined the success of their first global brand campaign in ten years, aiming to increase brand desirability. This move aligns with PUMA's strategic objectives of heightening brand image and market presence in crucial territories like the US and China.

Despite the optimistic view on brand initiatives and strategic market positioning, PUMA's net income saw a decrease of 25.5% compared to the same quarter last year, setting down at €87.3 million. The financial outcomes reflect continuous volatility in global market conditions and exchange rates impacting the company's earnings and expenses.