German sportswear giant Puma's sales jump 6% in Q3 FY23

The Asia-Pacific region also witnessed growth, posting a 4.6 per cent increase to €435.9 million, bolstered by recovery trends in Greater China and ongoing growth in markets such as Japan and India. The Americas, however, showed a more moderate 2.5 per cent sales increment, reaching €854.6 million, amid macroeconomic challenges and the company’s dependency on off-price wholesale business, the company said in a press release.

Puma’s wholesale business experienced a 3.1 per cent growth, clocking in at €1,786.3 million. In contrast, the direct-to-consumer (DTC) business witnessed a 17.4 per cent increase to €524.9 million. Sales in owned and operated retail stores rocketed by 21.8 per cent, while e-commerce sales went up by 8.3 per cent. This strong DTC performance lifted its share to 22.7 per cent, up from 20.8 per cent in the third quarter of the previous fiscal year.

Sales in footwear jumped by 11.3 per cent, thanks to strong demand in football, basketball, and performance running categories, as well as the sportstyle segment. Apparel, however, faced a minor decline of 0.5 per cent. Accessories observed a 4.2 per cent growth.

The gross profit margin saw a modest increase of 30 basis points, reaching 47.1 per cent compared to 46.8 per cent in Q3 FY22. Operating expenses slightly increased by 1.2 per cent to €863.7 million. The operating result (EBIT) fell by 8.3 per cent to €236.3 million, pushing the EBIT margin down to 10.2 per cent from last year’s 10.9 per cent. As a result, net income dipped by 10 per cent to €131.7 million, with earnings per share dropping to €0.88 from €0.98 in the same period last year.

For the first nine months of FY23, sales rose by 10.3 per cent to €6,619.5 million. Wholesale business grew by 7.3 per cent to €5,113.7 million, while DTC surged by 22 per cent to €1,505.8 million. Footwear continued to dominate with a 19 per cent increase, whereas apparel and accessories showed modest growth, rising by 1.6 per cent and 1.8 per cent, respectively. However, the gross profit margin decreased to 46.2 per cent, and operating expenses swelled by 8.4 per cent, leading to a net income decline of 13.6 per cent, amounting to €304 million.

“While the market continues to experience significant macroeconomic headwinds and 2023 remains a transition year, we outgrew the market with a currency adjusted sales growth of 6 per cent and delivered an EBIT of € 236 million, both fully in line with expectations. We once again demonstrated our sustained brand momentum and gained market share. We remain fully on track to achieve our full-year guidance,” said Arne Freundt, chief executive officer of Puma.

Fibre2Fashion News Desk (DP)