In light of a “strong” third-quarter increase in sales and profitability, as well as the positive business outlook for the fourth quarter, German sportswear brand Puma has raised its full-year guidance for the third time this year.
Currency adjusted consolidated sales in the three month period increased by around 17% – and 13% in reported terms – to EUR1.12bn (US$1.44bn), the company said in a preliminary trading update yesterday (18 October). This compared to sales of EUR990m in the year-ago quarter.
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The operating result (EBIT) for the quarter jumped 68.3% to reach EUR101m from EUR60m last year, the Kering controlled company said.
In light of the strong third-quarter increase in sales and profitability, as well as the “positive business outlook” for the fourth quarter, Puma has raised the full-year guidance for its consolidated sales, gross profit margin, operating expenses and operating result (EBIT).
Management now expects sales to increase, currency adjusted, between 14% and 16% compared to previous guidance of between 12% and 14%. Gross profit margin meanwhile, is now anticipated to improve to 46.5%, compared to previous guidance of 46%.
Due to the expected increase in sales, operating expenses are expected to increase at a low double-digit percentage rate, compared to previous guidance of a high single-digit percentage rate. As a consequence, the operating result (EBIT) is now anticipated to come in between EUR235m and EUR245m. This compares to previous guidance of between EUR205m and EUR215m.
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By GlobalDataIn line with earlier guidance, management maintains net earnings will improve “significantly” in 2017.
A complete overview of Puma’s business development for the third quarter and the first nine months of 2017 will be published on 24 October.
