Puma posts strong Q3 led by growth in Americas and EMEA

Puma’s sales in the third quarter increased by 13.3 percent currency adjusted and 7.2 percent reported to 1,583.4 million euros. The company said in a statement that supported by additional demand following a weak second quarter, when sales declined 30.7 percent currency adjusted), sales accelerated throughout the third quarter led by a 20.7 percent sales increase in the Americas and 17.7 percent sales growth in EMEA. Sales in Asia/Pacific declined by 1.9 percent, caused by slower growth in Greater China and a sales decline in India, Korea and South East Asia.

The gross profit margin declined by 270 basis points to 47.0 percent, the operating result (EBIT) increased by 16.8 percent to 189.5 million euros corresponding to an improvement of the EBIT margin from 11 percent last year to 12 percent in the third quarter of 2020. The company further said that net earnings increased by 13 percent to 113.6 million euros and earnings per share were up from 0.67 euros in the third quarter last year to 0.76 euros correspondingly.

Puma’s sales in the nine-month period drop 5.1 percent

The company added that in the third quarter footwear, apparel and accessories all showed strong growth, improving by 13.9 percent, 8.8 percent and 23 percent respectively. The wholesale business increased by 12.3 percent currency adjusted to 1,202.5 million euros, while Puma’s direct to consumer business (DTC), which includes owned and operated retail stores as well as e-commerce, increased by 16.7 percent currency adjusted to 380.9 million euros, driven by a strong growth in e-commerce of 60.9 percent.

Puma’s sales in the first nine months of 2020 decreased by 5.1 percent currency adjusted and 7.7 percent reported to 3,714.3 million euros. Despite the sales growth in the third quarter, all regions showed a decline in sales on a nine-month basis, with EMEA being down 1 percent currency adjusted, Americas 6.5 percent and Asia/Pacific 9.1 percent. Sales in footwear declined by 5.4 percent currency adjusted and in apparel by 8 percent, while sales in accessories grew by 2.2 percent.

The company’s wholesale business decreased by 6.8 percent currency adjusted to 2,791.8 million euros, while direct to consumer business (DTC) increased by 0.4 percent currency adjusted to 922.5 million euros and e-commerce business increased strongly by 66.5 percent currency adjusted.

The gross profit margin declined by 280 basis points from 49.4 percent to 46.5 percent in the first nine months, EBIT decreased to 145.9 million euros and net earnings declined to 54.2 million euros translating into earnings per share of 0.36 euro compared to 1.64 euros in the first nine months of 2019.

Picture:Puma newsroom