Puma reported a decline in first-quarter earnings, posting $93.9M in net profit for the period, compared with $126.1M a year ago, on sales that fell 3.9% on year after they were "hit by unfavorable currency effects." The sportswear company said that the market "continued to be volatile" and that its retail partners "still had elevated stock levels." But despite the decline, the company has "begun to invest into its first brand campaign in a decade" (WALL STREET JOURNAL, 5/8).
The company’s operating expenses had "fallen in the first quarter, inventory levels improved and costs like freight were also down." Footwear sales rose 3.1% to $1.27B, while apparel fell by 2.4% to $653.8M and accessory sales decreased 3.2% to $336.2M. Despite the "flattish results," the brand "confirmed guidance for the year." For all of 2024, Puma "still expects sales revenues to grow in the mid-single digits" (WOMEN'S WEAR DAILY, 5/8).
