Puma Highlights ‘Volatile’ Demand After Rise in Second-Quarter Sales

01 March 2023, Bavaria, Herzogenaurach: The Puma logo is seen on the exterior of the brand store. (dpa)
01 March 2023, Bavaria, Herzogenaurach: The Puma logo is seen on the exterior of the brand store. (dpa)
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Puma Highlights ‘Volatile’ Demand After Rise in Second-Quarter Sales

01 March 2023, Bavaria, Herzogenaurach: The Puma logo is seen on the exterior of the brand store. (dpa)
01 March 2023, Bavaria, Herzogenaurach: The Puma logo is seen on the exterior of the brand store. (dpa)

German sportswear retailer Puma on Wednesday said second-quarter sales grew by 11%, slightly ahead of market expectations thanks to stronger revenues from Asia and Europe.

The sportswear sector is struggling to bring down inventory levels in the face of weakening demand in North America and a slower than expected recovery in China, a market the industry was betting on to boost sales.

Puma stuck to its financial targets for 2023 but sounded a cautious note on market conditions, including an "uncertain" recovery in China.

"The macroeconomic environment and volatile retail demand remain challenging, particularly in North America and Europe, as recession risks weigh on consumer sentiment."

Puma's shares, which fell in early trading in Frankfurt, were up 1.6% by 0712 GMT.

Puma said it saw strong demand for its new terrace sneakers Palermo and Super Team.

The first products from a renewed partnership with Rihanna will showcase the Grammy-winning Barbadian singer's take on the terrace trend, Puma said, when they launch in September.

These are styles from the 1970s and 1980s named after the standing section at soccer stadiums.

Puma' sales came in at 2.12 billion euros ($2.34 billion) in the quarter, up from 2 billion a year earlier and above the 2.05 billion expected by analysts polled by Refinitiv Eikon.

The company confirmed its full-year outlook for currency adjusted revenue growth in a high single-digit percentage rate, and an operating profit of between 590 million and 670 million euros. It said it would be able to adjust the guidance if things went well in the third quarter.

Operating earnings of 115 million euros for the quarter were down 21% from a year earlier but still above the 110 million expected by analysts.



Saudi Fashion Commission Showcases Local Brands at Selfridges in London 

Saudi Fashion Commission Showcases Local Brands at Selfridges in London 
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Saudi Fashion Commission Showcases Local Brands at Selfridges in London 

Saudi Fashion Commission Showcases Local Brands at Selfridges in London 

An initiative showcasing the creations of elite Saudi brands has been launched at Selfridges in London through a strategic partnership between the Saudi Fashion Commission, the Cultural Development Fund (CDF), and Selfridges, reported the Saudi Press Agency on Wednesday.

This milestone reflects the growing momentum of the Kingdom's fashion sector and the evolving talent of its designers and entrepreneurs, driven by strong domestic demand, strategic investments, and institutional support from leading national entities shaping the cultural economy.

For two months, the works of participants in the Saudi 100 Brands program and beneficiaries of the Cultural Development Fund will be showcased. Selected by Selfridges based on specific criteria, each designer blends contemporary Saudi aesthetics with innovative design. The collections are featured in an immersive shopping experience at one of the world's most iconic luxury stores, coinciding with the peak summer season.

Cultural events will also be held during the brands' presence to celebrate the Kingdom's "Year of Handicrafts." These events will highlight the Kingdom's deep-rooted heritage, which is an inexhaustible source of inspiration that continues to shape the creative expressions of contemporary local designers, whose creations resonate on the global stage.

CEO of the Cultural Development Fund Majed Al-Hogail stated that this significant milestone embodies the growing momentum of the Kingdom's fashion sector.

"Local talents and entrepreneurs are not only emerging, but are also redefining the Kingdom's creative identity through designs and brands that are deeply rooted in Saudi culture, yet expressed with a contemporary global vision," he added.

Al-Hogail noted that, backed by domestic demand, strategic investment, and unified national support, "the fashion sector has become a vital pillar of our cultural economy. It reflects our commitment to fostering sustainable opportunities and establishing the Kingdom's position as a leading force in the global cultural landscape, in line with the aspirations of Saudi Vision 2030."

CEO of the Saudi Fashion Commission Burak Cakmak said: "This is more than just a retail opportunity; it is a declaration that Saudi fashion is entering a new era, from Riyadh to London."

"Through the Saudi 100 Brands program, we support designers in honing their craft and creating real pathways for global reach and business growth," he stressed.

The list of participating brands represents the innovation and diversity of the Saudi fashion industry.