Currency headwinds batter Puma Q1 profit
- Q1 net profit down 30.3% to EUR25m
- Sales surge 13.2% to EUR821m
- Underlying revenue increase reduced to 4.4%
Currency variations inflated sporting goods giant Puma’s first quarter revenues
Currency variations inflated sporting goods giant Puma’s first quarter revenues, but sent net profit down by more than 30%.
After adjustments, revenues in EMEA edged up only 0.2% to EUR342m, with southern European countries developing positively, but the UK down on softer lifestyle business trends.
Americas revenue rose 5.6% to EUR289m thanks to positive movements in both North and Latin America, while Asia Pacific sales surged up 10.9% to EUR191m thanks to strong performances in China and India.
Footwear growth outstripped apparel gains, while accessories revenues fell by nearly 5%, but retail sales were up 7.3% at EUR144m.
Puma’s gross profit margin for the quarter was 46.9%, down from 48.5% a year ago, solely because of currency impacts, the company said.
CEO Bjørn Gulden described the results as "slightly stronger than expected", highlighting positive footwear trends.
"We are working very hard to improve our product offer, and although we know we have some ways to go, we feel that this growth in footwear confirms that we are on the right path," he said.
But Gulden admitted that the business did not have enough leverage to fully neutralise the impact of the currency headwinds.
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