Footwear sales give Puma a leg-up in transitional year
27/04/2023
Sales in footwear were up 29%, driven by demand for performance categories.
Sales in clothing grew by 1.5%, while accessories declined by 1.7%, mainly because of slower leg- and bodywear sales, especially in North America.
The German brand reported a return to growth in Greater China for the first time in two years.
However, sales in North America fell due to declining sales to the wholesale distribution channel, particularly to cut-price retailers, as a result of high inventory levels in the market. Puma said this showed the need to strengthen its business with “more desirable” retailers in North America.
Collaboration highlights during the quarter included a new multi-year collaboration with Rihanna focused on unisex and kids collections, and a long-term partnership with Manchester City and England football player Jack Grealish.
Mr Freundt said: “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.
“We consider 2023 to be a year of transition. In line with our expectations, the year has started with pressure on gross profit margin and profitability. For the second quarter, we expect low to mid single-digit sales growth due to high inventory levels in the trade and continued headwinds in the market.”
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