PUMA (PUM) Q2 2023 earnings summary

Executive summary

• H1 sales rose 12.7% currency-adjusted to €4,308.3 million; strong growth in EMEA and Asia/Pacific offset declines in the Americas. Management confirmed the FY23 outlook and said inventory normalization was achieved as planned.

• Strategic priorities remain brand elevation, winning in the U.S. and rebuilding momentum in China, supported by product development and stronger retail, athlete and supplier partnerships.

Financial highlights

• Q2 sales increased 11.1% currency-adjusted to €2,120.7 million (+5.9% reported); H1 sales increased 12.7% currency-adjusted to €4,308.3 million (+10.1% reported).

• H1 EBIT fell 15.0% to €290.9 million; net income declined 16.2% to €172.3 million and EPS was €1.15 versus €1.37.

• H1 EBITDA was €455.6 million versus €500.8 million; gross profit margin fell 120 bps to 45.7%.

• Q2 EBIT declined 21.2% to €115.3 million and net income fell 34.7% to €55.0 million; EPS was €0.37 versus €0.56.

Outlook and guidance

• FY23 currency-adjusted sales growth guidance remains in the high-single-digit percentage range; EBIT guidance remains €590 million–€670 million versus €641 million in 2022, with a corresponding change in net income expected.

• Profitability is expected to improve toward year-end, mainly through sequential gross-margin improvement as sourcing and freight costs ease; favorable Q3 trading could enable an outlook adjustment.

• Planned FY23 fixed-asset investments are ~€330 million, mainly for distribution and logistics infrastructure, administrative buildings and retail-store modernization.