Puma has released its figures for Q1 FY2023 ending 31st of March 2023, with sales increasing €275.5m ($304.03m) to almost €2.2bn ($304.03bn) to represent a growth of 14.4%.
Leading data and analytics company GlobalData apparel analyst Alice Latour Price provided her view: “This was largely driven by a strong performance in EMEA, with sales growing 25.4% on a currency adjusted basis, despite high inflation rates in the region.”
The company saw a rise in Greater China after a two-year decline, benefitting from the easing of Covid-19 restrictions. This facilitated sales in APAC to grow by 27.4%.
Meanwhile, in the Americas, Puma saw sales fall by 0.8%. The brand attributed this to reduced sales to off-price wholesalers in North America due to excess inventory.
The company’s operating profit fell 10.5% on the year, though this is in line with much of the rest of the market due to elevated costs.
Puma anticipates that the next quarter of 2023 will be a more difficult one, with expected sales growth in the low to mid-single-digits. Although, its full year guidance remains in line with its previous projections in the high single-digits. This indicates that it expects improvements in the second half of 2023.
Instore experiences, footwear and brand partnerships are key for Puma
Latour-Price explained: “Puma performed well across all its channels, especially online where currency adjusted sales increased by 32.7%, but also saw growth in its retail stores, up 17.3%. The brand continues to elevate its offline proposition through eye-catching displays and immersive experiences to engage consumers and set its instore experience apart from competitors.”
GlobalData analysis shows that at a category level, in 2023, Puma’s footwear continued to outperform, with sales up 28.8%. This was predominantly driven by its performance lines, such as running, football and basketball. However, on a reported basis, apparel and accessories performance remained up 1.4% and down 0.8%, respectively.
Latour-Price concluded “Partnerships have been one of the driving forces of Puma’s success in recent years. The brand continues to capitalise on collaborations to bolster exposure and stand out.
“In March, it announced the return of its collaboration with Rihanna, Fenty X Puma, which will focus on children’s and unisex collections, with the latter tapping into the growing demand for gender fluid fashion. The Fenty collaboration is a welcome return for the brand, with the previous partnership becoming a colossal success.”