German sportswear firm Puma reports 19.7% rise in sales in Q1 FY22

Puma’s wholesale sales increased by 23.3 per cent to €1,528.2 million and the direct-to-consumer business was up by 7.1 per cent to €384 million.

The increase was led by strong sales in the US with a growth of 44.1 per cent and sales in Middle East and Africa (EMEA) were up 25.5 per cent. All the product divisions witnessed a double-digit growth. Footwear grew 18.2 per cent, apparel 16 per cent and accessories sales rose to 32.2 per cent. The growth was driven by a strong demand for the company’s performance categories like running and training, team sports, golf and basketball, and the sportstyle category.

“We have had the highest growth rates in the performance categories like running, football, basketball and golf, which confirms that our investments into innovation and marketing are paying off,” Bjorn Gulden, CEO, Puma said in a release.

The gross profit margin declined to 47.2 per cent and net earnings increased from €109.2 million to €121.4 million in the first quarter of 2022.

“Based on such a strong first quarter, we would normally raise our outlook for the full year. The COVID-19 outbreak in China, the crisis in Ukraine, a very tight freight situation and inflationary pressures are all uncertainties that force us to remain very flexible and to manage our business as well as possible in the short-term without hindering PUMA’s mid-term momentum. We see further upside on the revenue side, but also increased pressure on our OPEX and gross margin due to all the uncertainties,” Gulden further added.

Puma expects an operating result in the range of €600 to €700 million and a sales growth of at least 10 per cent in fiscal 2022.

ALCHEMPro News Desk (HO)