On May 9, the German sports brand PUMA (Puma) announced its financial report for the first quarter of 2024. During the reporting period, Puma achieved an operating revenue of € 2.102 billion, up 0.5% year on year; The net profit was 87.3 million euros, down 23.5% year on year.
From the perspective of product categories, in the first quarter of 2024, Puma's footwear business revenue continued to lead, with a year-on-year growth of 3.1% to 1.182 billion euros; Clothing revenue decreased by 2.4% year-on-year to 608 million euros; Accessories revenue decreased by 3.2% year-on-year to 313 million euros. From the perspective of channels, in the first quarter of 2024, the revenue of wholesale business dropped 2.9% year-on-year to 1.608 billion euros; DTC (direct to consumers) business revenue increased by 13.5% year-on-year to 494 million euros, accounting for 23.5%.
Puma said that since the second quarter of 2023, the impact of exchange rate on sales has always existed. In the first quarter of 2024, the exchange rate had a negative impact on sales of about 100 million euros, but the negative impact of the exchange rate was offset by lower procurement and freight costs and a favorable combination of products and distribution channels. During the reporting period, Puma's gross margin increased to 47.5%.
From the perspective of market performance, in the first quarter of 2024, Puma achieved positive sales growth for the first time in four quarters in the Americas, with a year-on-year growth of about 1% to € 790 million; The sales in EMEA (Europe, Middle East and Africa) were flat on a year-on-year basis, about 856 million euros; Driven by the continuous growth of Greater China, Puma's sales in the Asia Pacific region increased by 0.6% year-on-year to 457 million euros, of which, Greater China achieved high single digit growth, achieving positive growth for five consecutive quarters.
In addition, the financial report shows that in the first quarter of 2024, Puma's operating expenses decreased by 0.4% year-on-year to 845 million euros. Although marketing investment still accounted for 10% of sales, the company's strict cost control in non demand generating areas largely offset the cost of inventory increase, digital infrastructure investment and inflation pressure.
Arne Freundt, Puma's chief executive officer, said: "In the first quarter of 2024, we achieved results that were fully in line with expectations. With the brand renewal for the first time in a decade, we believe that in 2024, the sports year, Puma will further enhance its brand influence and achieve long-term and sustained performance growth." According to Puma's prediction, the company will achieve a median single digit sales growth in 2024. (Reporter Wang Zhenzhen)
