Puma, the German sportswear brand, announced on Wednesday that its first-quarter sales met expectations, leading to a more than 4% increase in its shares. This boost was driven by strong demand for its retro shoes and a rebound in growth in the Americas region, the company stated.
According to Refinitiv data, currency-adjusted sales increased by 0.5% to 2.10 billion euros ($2.26 billion), aligning closely with analysts’ expectations of 2.1 billion euros.
Sales of sportswear brands like Puma and its competitor Adidas have been bolstered by a surge in demand for retro shoe styles like ‘terrace’, amidst challenges posed by weaker consumer demand and excess inventory in the sector.
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In a statement, Chief Executive Arne Freundt remarked, “We’re witnessing month-over-month acceleration in sales of our popular terrace and skate styles, Palermo and Suede XL.”
Shares surged by 4.3% to 47.15 euros during early trading on Wednesday.
Analysts at J.P. Morgan noted in a client memo that “the absence of any miss this morning could offer some respite to the shares,” particularly amidst a year of weakness in the share price thus far.
According to the company, sales in the Americas region increased by 1.0% to 790 million euros, marking the first positive rise in four quarters. The U.S. saw a sequential improvement in sales.
Freundt mentioned that while retail partners are still addressing high inventory levels, the company anticipates additional improvement in the second quarter.
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The company reported a 3.9% decline in group sales compared to the previous year, with currency effects reducing euro-denominated sales by approximately 100 million euros in the quarter.
Puma’s wholesale business saw a currency-adjusted decline of 2.9%, amounting to 1.61 million euros.