Puma first quarter sales boosted by bumper footwear demand

Sportswear brand Puma has revealed bumper demand for footwear helped lift first quarter sales up to reach €2.2 billion (£2 billion).

The German company, known for its jumping cat logo, recorded a 14.4% group sales rise, with footwear 28.8% higher with strong performances in its football, basketball and running lines.

The company pointed to highlights from the quarter including signing a new “long-term partnership” with Jack Grealish which will see the Manchester City player wear Puma boots.

Chief executive Arne Freundt said the first quarter growth was a strong start to 2023.

However the firm was not immune from challenges and said higher freight costs and unfavourable currency effects hit profit margins. It also saw sales decline in North America “as a result of high inventory levels in the market”.

Puma said: “The macroeconomic situation and overall uncertainty in the trade remain challenging. Recession fears in various markets, persistently high inflation and elevated interest rates are leading to muted consumer sentiment and volatile demand in retail. In addition, elevated inventory levels in the market contribute to a slower sell-in to the wholesale channel at the moment.”

For the second quarter Puma expects low to mid single-digit sales growth due to high inventory levels in the trade and continued headwinds in the market.