admin Puma sales increased by 11.1 percent currency adjusted and 5.9 percent reported to 2,120.7 million euros in the second quarter.
The company’s first half sales increased by 12.7 percent currency adjusted and 10.1 percent reported to 4,308.3 million euros.
Commenting on the financial results, Arne Freundt, chief executive officer of Puma SE said: “On the back of our Q2 results, we are perfectly on track to achieve our full-year outlook in the transition year 2023. Puma continued to grow by double-digits, demonstrating continued strong brand momentum, despite the volatile environment. Our strategic priorities, brand elevation, winning in the U.S. and China are key for Puma’s future growth trajectory.”
Highlights of Puma’s Q2 results
The EMEA region recorded sales growth of 25 percent to 846 million euros, which was driven by strong performance in EEMEA. The Asia/Pacific region grew by 24.4 percent to 413.3 million euros, supported by a continued trend of recovery in Greater China after the market reopened. Sales in the Americas region were at 861.5 million euros, down 4.4 percent due to ongoing softness in North America, while Latin America continued to show growth.
Puma’s wholesale business increased by 6.9 percent to 1,605.3 million euros. Direct-to-consumer (DTC) business was up by 26.5 percent to 515.4 million euros. Sales in the company-owned & operated retail stores increased 30.4 percent and e-commerce was up 19.1 percent.
Sales in footwear were up 18.2 percent, driven by continued strong demand for football, basketball and performance running categories as well as for Sportstyle. Sales in apparel grew by 4.2 percent and accessories were up by 3.3 percent.
The gross profit margin decreased by 170 basis points to 44.8 percent. The operating result (EBIT) decreased by 21.2 percent to 115.3 million euros, which resulted in an EBIT margin of 5.4 percent. Net income for the quarter decreased by 34.7 percent to 55 million euros and earnings per share amounted to 0.37 euros.
Review of Puma’s first half performance
The Asia/Pacific region led the growth in the first six month period with a sales increase of 26 percent, followed by the EMEA region with a sales increase of 25.2 percent. Sales in the Americas region declined 2.7 percent due to macroeconomic headwinds, high inventory levels in the trade and Puma’s relative dependency on the off-price wholesale business in the U.S..
The wholesale business was up 9.6 percent to 3,327.4 million euros and the direct-to-consumer (DTC) business increased by 24.6 percent to 980.9 million euros. Sales in the company-owned & operated retail stores increased 24 percent and e-commerce increased 25.6 percent. This resulted in an increased DTC share of 22.8 percent.
Footwear continued to lead the growth with 23.5 percent, while apparel and accessories were up 2.9 percent and 0.8 percent, respectively.
The gross profit margin decreased by 120 basis points to 45.7 percent, the operating result (EBIT) decreased by 15 percent to 290.9 million euros, which resulted in an EBIT margin of 6.8 percent. Net income decreased by 16.2 percent to 172.3 million euros and the earnings per share amounted to 1.15 euros.
Puma confirms currency-adjusted sales growth in the high single-digit percentage range for the financial year 2023. In line with the previous outlook for 2023, Puma expects an operating result (EBIT) in the range of 590 million euros to 670 million euros and a respective change in net income. The company continues to expect an improved profitability towards the end of the year, mainly driven by a sequential improvement in the gross profit margin due to lower sourcing and freight costs.
