Puma, the sports clothing retailer, saw its German-listed shares rally 5% today after it reiterated its full-year guidance despite demand remaining under pressure.
Sales for the period reached €2.1 billion, a 3.9% year-on-year decrease, during the first quarter of the 2024 financial year.
Much of the decline was led by consumers being more selective in their purchases, plus macroeconomic challenges and unfavourable exchange rates.
Nevertheless, management reiterated forecasts that sales would grow by a mid-single digit during the full year.
Pippa Stephens, senior apparel analyst at GlobalData, said: "These results show a marked improvement on Q4 FY2023, when revenue dropped by 9.8%, signalling a more positive outlook for the rest of the year.
"Despite its operating profit falling by 9.4% in Q1 to €159.0m, it also expects this to come through relatively in line with last year at between €620m and €700m.
"With several key sporting events happening this year, including the Olympics and UEFA Euros, Puma launched its first global marketing campaign in 10 years in April 2024, which highlights the brand’s focus on speed and features athletes like Jack Grealish and Kai Havertz.
"This will allow it to build top of mind appeal among consumers, and hopefully drive further growth of its core categories throughout the rest of the year.”