Puma sales jump by 11% to €2.12bn in Q2 2023

August 2, 2023 / Rocket Yard Sports /

German sportswear giant saw sales in the Americas decline despite growth elsewhere.

German sportswear giant Puma has announced that sales for its products increased by 11 per cent year-over-year (YoY) to €2.12 billion (US$2.33 billion) in its fiscal second quarter of 2023.

Confirmed:

  • The European, Middle East and Africa (EMEA) region saw sales growth of 25 per cent YoY to €846 million (US$931 million) in Q2
  • Sales in the Asia Pacific (APAC) region grew by 24.4 per cent to €413.3 million (US$454.8 million)
  • Sales in the Americas region dropped by 4.4 per cent to €861.5 million (US$947.9 million)
  • Puma’s wholesale business increased by 6.9 per cent to €1.61 billion (US$1.77 billion)
  • The company’s direct-to-consumer (DTC) business grew by 26.5 per cent to €515.4 million (US$567.1 million)
  • Sales for footwear increased by 18.2 per cent, while apparel sales and accessories rose by 4.2 per cent and 3.3 per cent respectively
  • Gross profit margin dropped to 44.8 per cent, while operating expenses went up by 6.6 per cent to €843.4 million (US$928 million)
  • Operating result (earnings before interest and taxes) dropped by 21.2 per cent to €115.3 million (US$126.9 million)
  • Net income fell by 34.7 per cent to €55 million (US$60.5 million)

Context:

Puma’s declining sales in the Americas region was attributed to ‘ongoing softness’ in North America, indicating a drop in demand for its products. Elsewhere, while sales for APAC grew, the company told investors it was experiencing an “uncertain” recovery in China, given local brands have also increased their sales.

Comment:

“On the back of our Q2 results, we are perfectly on track to achieve our full-year outlook in the transition year 2023,” said Arne Freundt, Puma chief executive.

“Puma continued to grow by double-digits, demonstrating continued strong brand momentum, despite the volatile environment. As the best partner for wholesale, we worked together with our retailers through elevated inventory levels in the market and successfully normalised our own inventory levels as planned.”

Coming next:

Puma will hope to see an increase in sales during the second half of the year, which will see a relaunch of its collaboration with Rihanna’s Fenty brand take place in September.

Source: https://www.sportspromedia.com/news/puma-q2-2023-financial-results-sales-business-profit-earnings/