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.
