-By Mansi Suryavanshi
INSIGHTS
- Sales for Puma rose 14.4% year over year to €2,187.7 million in the first quarter of FY23, with the EMEA and Asia Pacific areas serving as major growth engines.
- Sales of clothes increased by 1.5% YoY while sales of footwear jumped by 28.8% YoY.
- However, the gross profit margin shrank by 70 basis points year over year, while operational costs rose by 19%
Puma, a German sportswear company, said that its first-quarter fiscal 2023 (FY23) sales increased by 14.4% year over year (YoY) to €2,187.7 million. Sales grew by 25.4% YoY in the Europe, Middle East, and Africa (EMEA) region and by 27.4% YoY in the Asia Pacific region, which were the main growth drivers. North America’s loss in sales caused a little decline in the Americas as a whole, but Latin America’s continued to experience rapid growth
Puma’s footwear sales in the first quarter of FY23 increased by 28.8% YoY, driven by a persistently high demand for sporty styles and performance categories including football, basketball, running, and golf. According to a press release from the company, sales of clothing rose by 1.5% YoY while accessories fell by 1.7% YoY, mostly as a result of weaker leg- and body wear demand in North America.
In Q1 FY23, Puma’s wholesale revenue climbed by 12.4% YoY to €1,722.1 million, while its direct-to-consumer (DTC) revenue increased by 22.5% YoY to €465.5 million. DTC experienced significant growth, particularly in e-commerce, which was primarily fueled by greater product accessibility and enduring brand momentum. Despite the trade’s high levels of inventories, the wholesale distribution channel was expanding at a double-digit rate.
However, Puma’s gross profit margin fell by 70 basis points YoY to 46.5% in the first quarter of FY23, while operational costs rose by 19% YoY to €848.3 million. The operating result (EBIT) declined by 10.5% YoY to €175.5 million, and the operating expenses’ ratio increased by 150 basis points to 38.8% as a result. Additionally, net income fell by 3.4% YoY to €117.3 million.
In Q1 FY23, Puma’s direct-to-consumer (DTC) business grew by 22.5% YoY to €465.5 million, while its wholesale business expanded by 12.4% YoY to €1,722.1 million. Specifically in e-commerce, the high DTC growth was primarily driven by Although operational expenses rose by 19% YoY to €848.3 million in the first quarter of FY23, Puma’s gross profit margin fell by 70 basis points YoY to 46.5%.
As a result, the operating result (EBIT) fell by 10.5% YoY to €175.5 million, and the operating expense’s ratio increased by 150 basis points to 38.8%. To €117.3 million, net income fell by 3.4% year over year.
