Puma's Q1 FY23 sales up 14.4% YoY in Q1 FY23, driven by EMEA region

Puma's footwear sales in Q1 FY23 grew by 28.8 per cent YoY, driven by continued strong demand for performance categories like football, basketball, running and golf, as well as for the sportstyle category. Apparel sales also increased by 1.5 per cent YoY, while accessories declined by 1.7 per cent YoY, mainly due to softer leg- and bodywear business in North America, the company said in a press release.

Puma's wholesale business increased by 12.4 per cent YoY to €1,722.1 million in Q1 FY23, while the direct-to-consumer (DTC) business was up by 22.5 per cent YoY to €465.5 million. The strong growth in DTC, especially in e-commerce, was primarily driven by continued brand momentum and improved product availability. The wholesale distribution channel continued to grow at a double-digit rate despite high inventory levels in the trade.

However, Puma's gross profit margin in Q1 FY23 declined by 70 basis points YoY to 46.5 per cent, and operating expenses increased by 19 per cent YoY to €848.3 million. As a result, the operating expenses ratio increased by 150 basis points YoY to 38.8 per cent, and the operating result (EBIT) decreased by 10.5 per cent YoY to €175.5 million. Net income also decreased by 3.4 per cent YoY to €117.3 million.

The company’s working capital in Q1 FY23 increased by 74.3 per cent to €1,751.5 million, compared to €1,004.8 million in Q1 FY22. Inventories were up by 32.7 per cent to €2,147.3 million, compared to €1,618.3 million in Q1 FY22.

Puma expects high single-digit percentage currency-adjusted sales growth and operating result (EBIT) in a range of €590 million to €670 million for FY23. For the second quarter of FY23, the company expects low to mid single-digit sales growth due to high inventory levels in the trade and continued headwinds in the market, the release added.

“Our Q1 growth was a strong start to 2023. In line with our strategy to be the best partner to retailers, we grew our wholesale business in a challenging environment and further strengthened our performance credibility with strong growth in our strategically important performance categories. Our significant growth in DTC demonstrated Puma’s continued brand momentum globally, including North America and Greater China,” said Arne Freundt, chief executive officer of Puma.

Fibre2Fashion News Desk (DP)