Puma, the renowned sports giant, has started off the year with exceptional Q1 results that have surpassed expectations. Despite facing challenges such as supply chain issues and the impact of the Russia-Ukraine war, Puma’s success can be attributed to high demand. The company’s operating profit has soared by 27% to €196 million, surpassing the predicted €181.5 million. Additionally, net earnings have improved by 11.2% to €121 million.

However, the gross profit margin has experienced a decline of 130 basis points, settling at 47.2%. This decrease can be attributed to an unfavorable mix of geographical locations and distribution channels, as well as higher freight rates. On the positive side, currencies have had a slight positive effect on the margin.

Puma has witnessed remarkable growth in sales, with an increase of 19.7% in currency-adjusted terms, amounting to €1.912 billion. When reported in actual figures, sales grew by 23.5%. Wholesale sales have surged by 23.3% to reach €1.528 billion, while Direct-to-Consumer sales rose by 7.1% to €384 million. Sales in owned and operated retail stores have seen a significant increase of 21.3% in currency-adjusted terms. Surprisingly, e-commerce sales declined by 13.2%, as the company prioritized its retailers during supply chain limitations and considered the current market situation in Greater China.

Puma’s CEO, Bjorn Gulden, expressed satisfaction with the Q1 results, stating that they validate the company’s investments in innovation and marketing. However, Gulden noted that while strong results would typically lead to an upward revision of the company’s outlook for the year, Puma has decided to maintain its initial outlook due to increased uncertainty in the global context.

During the first quarter of the year, Puma engaged in several notable collaborations and initiatives. The brand partnered with French label Ami and released a special edition of LaMelo Ball’s signature basketball shoe MB.01. Puma also collaborated with the Alfa Romeo F1 Team Orlen, providing race gear for China’s first Formula 1 driver, Zhou Guanyu, and Valtteri Bottas. Additionally, the company announced a long-term partnership with the Italian Lega Serie A starting in the 2022/23 season. Puma also made strides in sustainability, trialing garment-to-garment recycling in its circularity project RE:JERSEY, where old football kits were used to produce new ones. The brand also launched the Future Instinct football boot in collaboration with Neymar Jr.

Gulden highlighted Puma’s ability to overcome obstacles and uncertainties during the quarter, thanks to high demand and efficient operations within the tight supply chain. He expressed satisfaction with growth across all product divisions and business units. The Americas experienced the strongest sales growth for Puma, with a 44.1% increase driven by the North American and Latin American markets. EMEA (Europe, the Middle East, and Africa) also performed well, with sales rising by 25.5% in key markets. However, sales in the Asia Pacific region declined by 17% due to challenges in Greater China resulting from its zero-Covid policy.

In terms of product categories, footwear sales increased by 18.2% in currency-adjusted terms, while apparel sales rose by 16% and accessories witnessed a remarkable growth of 32.2%. Puma achieved strong results in Running & Training, Teamsports, Golf, Basketball, and the Sportstyle category.

In conclusion, Puma’s impressive Q1 results showcase the company’s resilience and ability to navigate through challenging circumstances. Despite supply chain issues and geopolitical tensions, high demand and effective operations have enabled Puma to deliver strong financial performance. The company remains cautiously optimistic about the future, considering the uncertainties in the current global landscape. With a diverse range of product divisions and a focus on innovation and marketing, Puma is well-positioned to maintain its growth trajectory and capitalize on emerging opportunities in the sports industry.

Note: To learn more about Puma’s Q1 results, you can visit their official website [here](https://www.puma.com/) and read their press release [here](https://about.puma.com/en/newsroom/corporate-news/2022/05/19/puma-starts-fiscal-year-2022-with-a-beat-in-the-first-quarter).