Following today’s release of Puma’s figures for Q1 FY2023 ending 31st of March 2023; Alice Latour Price, Apparel Analyst at GlobalData, a leading data and analytics company, offers her view: “Puma has recorded an impressive start to 2023, with sales increasing €275.5m to almost €2.2bn to represent a growth of 14.4%, as it continues to share within the sportswear market. 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. After two years of decline, Puma finally saw a rise in sales in Greater China, benefitting from the easing of COVID-19 restrictions, and this facilitated sales in APAC to grow by 27.4%. Puma saw sales in the Americas fall by 0.8%, with the brand attributing this to reduced sales to off-price wholesalers in North America due to excess inventory. Puma’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 will be a more difficult one, with expected sales growth in the low to mid single-digits, though its full year guidance remains in line with its previous projections, in the high single-digits, indicating that it expects improvements in the second half.
“Puma performed well across all its channels, especially online where currency adjusted sales increased by 32.7%, but Puma 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. In February 2023, Puma incorporated vibrant LED displays within its flagship Singapore store, to enhance the instore experience and grab the attention of customers, while in October 2022, Puma opened its first interactive store in India, equipped with an F1 simulator and customization studio, setting its instore experience apart from competitors. At category level, Puma’s footwear continued to outperform, with sales up 28.8%, predominantly driven by its performance lines, such as running, football and basketball, while apparel and accessories performance remained underwhelming, up 1.4% and down 0.8% respectively on a reported basis.
“Partnerships have been one of the driving forces of Puma’s success in recent years, and the brand continues to capitalize 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. Elsewhere, Puma aims to increase brand visibility and ensure continued growth in the APAC region, through Manchester City’s Trophy Tour and an organised running event in Shanghai.”
