Investing.com -- Puma (ETR:PUMG) (OTC:PMMAF) reported flat first-quarter sales that topped analyst expectations and reaffirmed its full-year guidance.
The German sportswear maker reported revenue of 2.076 billion euros ($2.35 billion) for the period, just above the 2.041 billion euros expected by analysts, and up 0.1% from the same period last year.
Puma saw regional revenue growth of 5% in EMEA on a currency-adjusted basis, outperforming consensus expectations, driven by strong performance in Eastern Europe, the Middle East, and Africa.
Revenue in the Americas declined 3%, with double-digit growth in Latin America offset by a drop in North America. Asia-Pacific revenue fell 5%, underperforming estimates, due to continued weakness in Greater China.
By channel, direct-to-consumer sales rose 12%, led by a 17% increase in e-commerce and 9% growth in physical stores. The wholesale segment, which remains Puma’s core revenue stream, declined by 3.6%, driven by weaker demand from retailers in the U.S. and China.
The company is undergoing a leadership transition after appointing former Adidas (OTC:ADDYY) executive Arthur Hoeld as CEO. Hoeld will officially take over on July 1, following Arne Freundt’s departure in April. Until then, the board is overseeing operations.
Puma reaffirmed its full-year outlook, guiding for “low-to mid-single-digit” sales growth in 2025, though this does not account for any potential impact from U.S. tariffs.
The reiterated outlook "should appease bear concerns around lowering or withdrawal of guidance (including our expectations)," RBC Capital Markets analysts said. "With light investor positioning and depressed valuation we could see a short term relief rally in the shares."
"For us, the stock remains in wait-and-see mode until incoming CEO Arthur Hoeld joins in July 2025, assesses the situation and formulates a new strategy which will likely take months. In the meantime, our preferred sporting goods idea is Adidas," they added.