PUMA Reports Increased Q2 Sales, Ahead of Fenty Collaboration Relaunch
The company saw sizable growth in the EMEA and Asia/Pacific regions, while its North American sales were down.
During an online press conference on Wednesday, PUMA chief executive officer Arne Freundt revealed that the company recorded an 11.1% increase in sales, raking in €2.12 million EUR in currency-adjusted terms, for the second quarter of 2023. The company’s latest financial results place its half-year sales total at €4.3 million EUR.
“On the back of our Q2 results, we are perfectly on track to achieve our full-year outlook in the transition year 2023,” said Freundt. “PUMA continued to grow by double-digits, demonstrating continued strong brand momentum, despite the volatile environment. Our strategic priorities, brand elevation, winning in the U.S. and China are key for PUMA’s future growth trajectory.”
The German sportswear label reported a sales increase of 25% in the EMEA region, reaching a total of €846 million EUR. In the Asia/Pacific region, PUMA achieved a 24.4% increase in sales, earning €413.3 million EUR, largely thanks to a recovery in Greater China following its market reopening.
In the Americas, however, the company saw a 4.4% decrease in sales, charting €861.5 million EUR. Where Latin America’s sales continued to show improvement, the North American market was responsible for PUMA’s decline, primarily due to a fall in off-price business. Despite this, “strong growth in other regions more than offset the decline in North America,” per Freundt.
Further, PUMA’s Q2 report saw net income drop by 34.7% to €55 million EUR, and gross profit margins fell by 44.8%, mainly due to currencies, sourcing costs and promotions, according to the brand.
Going forward, PUMA looks to solidify its position in sportswear, with an enhanced focus on the product sector. “We want to anchor ourselves as a performance brand because we have been too much focused on lifestyle and fashion,” said Freundt. “Obviously that repositioning will take time. But we want to stress that we are a true performance brand…we are too dependent on sports lifestyle [products].”
The second half of 2023 will include several important marketing milestones for PUMA, including the relaunch of the brand’s previously-popular Fenty x PUMA collaboration, as well as its new signature sneaker with Hornets point guard LaMelo Ball.
“I am very sure that we will create a lot of brand heat in the second half of the year,” Freundt added.
In more fashion news, LVMH reported revenue of €42.2 billion EUR in the first half of 2023.
