Puma shares rise after sportswear group posts Q1 results in line with estimates By Investing.com

Investing.com — Shares in Puma (ETR:) were higher in mid-morning European trading on Wednesday after the German athletic apparel firm posted first-quarter results that met expectations following a return to positive sales growth in its Americas region.

The company added that it is seeing sales of its terrace and skate shoe styles Palermo and Suede XL accelerate month over month, boosting its order book in the second half of the year.

“I feel very confident about our sequential quarter-over-quarter improvement in 2024,” said Chief Executive Officer Arne Freundt in a statement.

As a result, Puma reiterated its guidance for mid-single-digit currency-adjusted sales growth and an operating result in the range of 620 million euros to 700 million during its 2024 financial year despite ongoing geopolitical and macroeconomic challenges. It flagged that expanding revenue and market share gains “will take priority” over short-term profitability.

In the first quarter, group-wide sales edged up by 0.5% on a currency-adjusted basis versus the year-ago period to 2.10 billion euros. Company-compiled estimates had seen the figure at 2.09 billion euros.

Improvement in demand in the U.S. drove sales growth in the Americas into positive territory for the first time in four quarters, while strength in China pushed sales in Asia up by 0.6%. Sales in Europe, the Middle East and Africa were flat.

Earnings before interest and taxes dropped by 9.4% to 159 million euros due mainly to negative currency headwinds, although this figure still topped projections of 147 million euros thanks in part to strict cost controls.

Analysts at Jefferies said the returns showed that Puma had registered a “less laboured start to 2024 than feared.”