Puma Q2 performance meets expectations

Puma has revealed its Q2 performance met expectations as sales increased 2.1% to €2.11bn (£1.8bn) thanks to improved demand in the Americas. 

Sales in the Americas region increased by 9% to €887.5m (£762.3m), with both the US and LATAM contributing to the growth and showing a sequential improvement. The Asia/Pacific region recorded sales growth of 1.9% to €411.9m (£353.9m), driven by continued growth in Greater China and sequential improvement in the rest of APAC.

Meanwhile, in the EMEA region, sales decreased by 4.3% to €817.9m (£702.8m) due to a decline in EEMEA from a strong prior year quarter (EEMEA grew +111% ca in Q2 2023), while Europe returned to growth.

Puma revealed its wholesale business declined by 3.3% to €1.52bn (£1.31bn), due to a decline in EEMEA. In all other regions, the wholesale business improved quarter-on-quarter, driven by “continued good sell-through and improved inventory levels in the trade”.

It noted that operating expenses (OPEX) increased by 4.3% to €879m (£755m), up from €843.4m (£724m) the previous year. The increase was primarily due to the continued growth of our DTC business and ramp-up costs of warehouse and digital infrastructure projects while all non-demand creating costs remained under strong control.

Puma also confirmed EBIT increased by 1.6% to €117.2m (£100m), despite negative currency effects on sales, gross profit margin and OPEX ratio.

Arne Freundt, CEO of Puma SE, said: “With our second quarter operating performance, we fully delivered on our outlook for the quarter and are well on track to deliver on our outlook for the full year. I could not be prouder of our team and our strong retail partnerships, which were key to delivering this result in an environment of increased currency headwinds, stressed supply chains and macroeconomic and geopolitical challenges that are weighing on consumer sentiment around the world. 

“With view to our strong orderbook for the second half of the year, we reiterate our sales growth outlook in the MSD range and are narrowing our full-year EBIT outlook range to €620-670m (£532m-£575m) EBIT in light of these external factors.”

He added: “…We continue to focus our efforts on increasing the brand desirability for the long-term growth of the PUMA brand. With our first global brand campaign in ten years, we have done the first steps and improved our brand consideration with consumers. Delivering great innovation and newness are further pillars of that strategy. 

“With the Euros, Copa America and now the Olympics, we have the perfect stage to create great brand visibility and credibility in our unmissable fireglow’ shoe colourway and showcase the superiority of our Nitro foam technology which enhances the performance of elite and everyday athletes. We are very proud of the achievements of our athletes and are grateful to celebrate these amazing sporting events and iconic moments together with them.”