German sports apparel and accessories brand, Puma, reported a net profit of €117.3 million for the first quarter of 2023, representing a 3.4% decline compared to the same period last year, the company announced on Wednesday.

Consequently, Puma's earnings per share fell by 3.5% to €0.78, in contrast to €0.81 recorded between January and March 2022.

Between January and March, turnover rose by 14.4% to €2.188 billion. Footwear sales grew by 28.8% to €1.21 billion, while clothing sales increased by 1.5%, reaching €647.7 million. Meanwhile, revenues from accessories suffered a decline, dropping by 1.7% to €329.5 million. 

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During the quarter, cost of sales increased by 15.9% to €1.17 billion, while other operating expenses rose by 19% to €843.3 million.

As a result, Puma's net operating income (Ebit) declined by 10.5% year-on-year in the first quarter, reaching €175.5 million.

Puma's CEO, Arne Freundt, acknowledged that the year got off to a difficult start with "pressures" affecting the gross margin and profitability, as expected. Despite this, he stated that the company's "diversified" geographical presence has proved advantageous, and is happy to report a return to growth in China after more than two years.

"For the full year, we confirm that the company is expecting single-digit sales growth and an Ebit of €590 million to €670 million. With our continued momentum, we are on track to normalise our inventory levels and achieve our full-year guidance," Freundt added.