Global sportswear firms continue to post conflicting sales results for the most recent trading quarter, with Puma clocking improved sales growth in Asia Pacific, compared to Under Armour’s decline in the region during the three months.
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German sportswear giant Puma reported a 2.1 percent increase in sales to EUR 2.1 billion for the second quarter, noting sales growth of 1.9 percent EUR 411.9 million in the Asia Pacific region, driven by continued growth in Greater China and improvement in the rest of APAC. A vast improvement on the first quarter, where the Adidas rival said sales in the Asia-Pacific region increased by just 0.6 percent to EUR 456.6 million.
By category, global second-quarter sales in footwear were flat EUR 1.1 billion on the back of a strong prior year quarter, with all performance categories as well as sportstyle core “performing very well,” the company added.
Sales in apparel grew by 9.2 percent EUR 705.6 million, while sales in accessories declined by 4.7 percent to EUR 314.8 million.
Despite the sales uptick, net income decreased by 23.8 percent to EUR 41.9 million, and earnings per share amounted to EUR 0.28. The company said operating expenses rose 4 percent on investments in its direct-to-consumer business and ramp-up costs of warehouse and digital infrastructure projects during the quarter.
“With our second quarter operating performance, we fully delivered on our outlook for the quarter and are well on track to deliver on our outlook for the full year,” said Arne Freundt, CEO of Puma.
“I could not be prouder of our team and our strong retail partnerships, which were key to delivering this result in an environment of increased currency headwinds, stressed supply chains and macroeconomic and geopolitical challenges that are weighing on consumer sentiment around the world.”
Coinciding with Puma’s update, American rival Under Armour reported a sales decline of 10 percent to USD 1.2 billion in the first quarter, weighed down by its Asia Pacific market, which dipped 10 percent.
By category, global apparel revenue decreased 8 percent to USD 758 million, footwear revenue was down 15 percent to USD 310 million, and accessories revenue was down 5 percent to USD 93 million.
As a result of the lacklustre sales update, Under Armour swung to a net loss of USD 305 million, compared to a net profit of USD 10 million in the prior-year period.
“We are encouraged by early progress in our efforts to reconstitute a premium positioning for the Under Armour brand and pleased with our first quarter fiscal 2025 results that were ahead of expectations,” said Under Armour president and CEO, Kevin Plank, who was reinstated to the top role in April.
“Our renewed energy and alignment are proving to be critical enablers as we work to deliver superior products and storytelling while driving efficiencies, reducing promotional activity, and complexity.”
The earnings updates come on the back of Nike’s 1 percent gain to USD 51.4 billion for the full-year, with growth in Greater China and Asia Pacific Latin America, partially offset by slowing North America and Europe sales. The American sportswear giant was outpaced by major rival Adidas, reporting a surge in double-digit top-line growth during the second quarter.