For the first time in two years, Puma, the world’s third-largest sporting goods manufacturer, has achieved growth again in the huge market of China, which has long been perceived as a problem area. Sales in the region, which is particularly important for the sporting goods industry due to its sheer size and often high margins, grew in the high single digits.
The new company boss Arne Freundt attributed the turnaround primarily to the end of the Covid restrictions in China. The government had also called for Western brands to be abandoned – here, too, the starting position is improving again, said Freundt when presenting the figures for the first quarter in Herzogenaurach. “We are cautiously optimistic that this positive trend will continue.”
On the other hand, he sees the situation in North America as problematic. In the world’s largest sporting goods market, Puma lost almost 20 percent of sales in the first quarter. According to Freundt, this was mainly due to the fact that the high stocks that had piled up during the Covid and other crises often had to be sold off. Puma now wants to score points in America with basketball shoes, golf equipment and running gear, with the help of US idols such as basketball player LaMelo Ball and soccer player Christian Pulisic, also in the higher-priced segment again.
Revenues up, profits down
Overall, currency-adjusted revenues in the first quarter increased by 14.4 percent to 2.19 billion euros, the company said. The bottom line, however, fell by 3.4 percent to 117.3 million euros. “For the year as a whole, we confirm our expectations for currency-adjusted sales growth in the high single-digit percentage range and an operating result (EBIT) in the range between 590 million and 670 million euros,” said the CEO. In his estimation, however, the second quarter in particular will be difficult, as it will be necessary to reduce the still high inventories.
Puma won back the musician Rihanna for a collaboration in 2023 and wants to launch products for children and unisex collections together with her. In addition, the English national soccer player Jack Grealish (Manchester City) has entered into a long-term partnership with Puma.
