German sports brand Puma has reported a 38% profit jump for the year to EUR187.4m (US$211.9m) on the back of stronger sales.
Earnings before interest and tax were 37.9% year-on-year at EUR337.4m driven by strong sales growth and a higher gross profit margin as well as operating leverage.
Sales for the period rose 12.4% on a reported basis – which accounts for currency fluctuations – to EUR4.7bn, with “particularly strong” sales in the Asia Pacific region followed by the Americas which both increased at double-digit rates.
Footwear continued to be a strong sales driver throughout the year. Sales were up 10.6% on a reported basis and exceeded the EUR2bn sales mark for the first time. In apparel, sales rose 17.1% on a reported basis to EUR687.5m.
“We are very happy with how our business developed in 2018,” says Bjorn Gulden, CEO of Puma. The double-digit growth in all regions is proof that we have strengthened the Puma brand globally and the double-digit growth in all product divisions shows that we have enhanced our product portfolio.
“We still have a lot to improve, but we feel we are moving our brand and company in a good direction.”
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Puma said it is confident the “positive development” would continue through 2019 and expects currency-adjusted sales growth of around 10% for the full year.
Based on the current exchange rate levels, management expects an operating result (EBIT) for the financial year 2019 in a range between EUR395m and EUR415m. Management also expects a “significant improvement” of net earnings in 2019.