Among the key news on German stocks, shares of DAX 40-listed PUMA SE (DE:PUM) rallied nearly 10% as of writing after it released Q1 results for 2024 in line with its expectations and also maintained an upbeat outlook for the remaining year. For the full year, Puma is targeting mid-single-digit sales growth and expects an operating result (EBIT) between €620 million and €700 million, as compared to €621.6 million in 2023.
PUMA, a globally recognized German brand, designs sportswear, apparel, and footwear.
Highlights from Puma’s Q1 Results
During Q1, Puma’s sales increased by 0.5% year-over-year to €2.10 billion on a currency-adjusted basis compared to the previous year. On a reported basis, Q1 sales were down by 3.9% compared to Q1 2023. The decline was mainly driven by selective consumer purchasing, macroeconomic challenges, and currency headwinds. Nonetheless, it came above the company’s estimate of €2.09 billion.
Among its product offerings, Footwear sales led the way with a 3.1% growth on a currency-adjusted basis, fueled by robust sales in its football category shoes. Looking ahead, the company noted momentum in month-over-month sales of its terrace and skate shoe styles, Palermo and Suede XL, which has bolstered its order book for the second half of the year. On the other side, sales in Apparel and Accessories decreased by 2.4% and 3.2%, respectively.
Regionally, the Americas region returned to positive sales growth after a gap of four quarters. Sales in this region increased by 1% on a currency-adjusted basis to €790 million compared to the same period a year ago.
In the first quarter, Puma’s gross profit margin improved by 100 basis points to 47.5%.
Is PUMA a Good Stock to Buy?
After the results, four analysts affirmed their ratings, including one Buy and three Hold recommendations.
Overall, according to TipRanks’ analyst consensus, PUM stock has a Moderate Buy rating based on 16 recommendations, of which seven are Buys. The Puma share price prediction is €50.95, which shows a positive change of 8% in the share price.
