On Wednesday, German sportswear producer Puma (PUMG.DE) said it expects second-quarter sales to rise at a low- to mid-single-digit percentage rate, below its full-year objective, due to high inventory levels and market headwinds.
In the first half of 2023, the firm projected its earnings and margins to be under pressure. It said currency impacts, promotional activities, and raw material costs would weigh on profits during the year.
Like Adidas (ADSGn.DE) and Nike (NKE.N), Puma has concentrated on clearing surplus inventory despite sluggish demand, which has placed pressure on sporting goods profits.
According to Refinitiv Eikon statistics, Puma’s first-quarter sales grew to 2.19 billion euros ($2.41 billion) from 1.91 billion in 2022, above analysts’ expectations of 2.15 billion.
The business said that global expansion, notably Greater China, offset a poor performance in the over-inventory U.S. market.
Puma reiterated its full-year estimate for currency-adjusted revenue growth in the high single digits and an operating profit of 590 million to 670 million euros.
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