German sportswear brand Puma has raised its full-year guidance on the back of “healthy improvement” across all divisions and regions in the second quarter.
Net earnings in the three month period surged 59.8% to EUR49.7m (US$55.4m), the company said in its quarterly statement today (31 July). This compared to net earnings of EUR31.1m a year earlier.
Meanwhile, Puma’s sales growth also continued, with revenue climbing 15.7% currency-adjusted (and 16.9% in reported terms) to EUR1.23bn. The Americas and Asia/Pacific regions contributed with double-digit increases, while growth in the EMEA region was at a high single-digit rate.
Both apparel and footwear showed strong growth in the second quarter, improving by 22.7% and 14.5% respectively, while accessories grew a more moderate 6.3%. Puma experienced growth across categories, with sportstyle, motorsport and golf showing the highest growth rates.
The gross profit margin improved to 49.3% from 48.6%, helped by channel and product mix, lower discounts and positive currency impacts.
In addition, Puma’s operating result (EBIT) increased by 39.4% from EUR57.6m last year to EUR80.3m due to its strong sales growth combined with an improved gross profit margin and a slight operating leverage.
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By GlobalDataCEO Bjørn Gulden says: “New styles of footwear sold well, apparel continued to be strong, replenishment orders for both apparel and footwear developed well and our direct-to-consumer business also performed well.”
As a result, Puma has lifted its outlook for the full year, expecting revenues to rise by around 13% in constant currency, compared with previous guidance for an increase of around 10%. Full-year EBIT is seen at between EUR410m to EUR430m, up from earlier forecasts of between EUR395m and EUR415m. Management expects net earnings will “improve significantly” in 2019.
