Puma expects Q2 sales growth below full-year target after Q1 beat

Get ready for some exciting news from Puma! The German sportswear maker has just announced that it beat first-quarter revenue expectations, thanks to strong growth globally, including in Greater China. However, due to high inventory levels and persistently high inflation, Puma expects second-quarter sales to grow at a low- to mid-single-digit percentage rate, which is below its full-year target.

Don’t worry though, Puma is taking action to address the inventory issue and expects to normalize its inventory levels by mid-year. The company is also focusing on qualitative growth instead of relying on off-price channels that sell goods in large volumes at discounted prices.

While the return in demand in China is not yet as strong as in the U.S. and Europe after the easing of COVID-19 curbs, Puma is confident in China for the long term. In fact, analysts at Credit Suisse noted that Puma’s share gain in the region is accelerating, outperforming rivals such as Adidas and Nike.

Overall, Puma confirmed its full-year outlook for currency adjusted revenue growth in high single digits, and an operating profit of between 590 million and 670 million euros. Stay tuned for more updates from Puma!

($1=0.9103 euros)

(Reporting by Linda Pasquini and Elizaveta Gladun in Gdansk; Additional reporting by Alexander Huebner in Munich; Editing by Milla Nissi and Clarence Fernandez)

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