Puma records sales growth, reiterates outlook

Third quarter sales at Puma increased by 16.9 percent currency adjusted and 23.9 percent reported to 2,354 million euros.

Commenting on the results, Bjørn Gulden, chief executive officer of Puma SE said: “Despite all the global uncertainties the third quarter was again a very good quarter for us. With sales up 24 percent in euro terms at 2,354 million euros and EBIT up 13 percent to 258 million euros, it was the best quarter in Puma’s history.”

“We expect continued volatility in the market during the fourth quarter but are confident that we can deliver according to our full-year outlook,” Gulden added.

Review of Puma’s Q3 performance

In the third quarter, the Americas region recorded a sales growth of 18.8 percent, sales in EMEA were up 18.5 percent, driven by strong growth across almost all key markets in Europe. The Asia/Pacific region recorded sales growth for the first time this year of 9.8 percent.

Sales in footwear were up 33.2 percent and apparel grew 9.9 percent, driven by continued strong demand for performance categories like running & training, Teamsports and basketball, as well as for Sportstyle. Sales in accessories were down 10.2 percent because of a softer leg and bodywear business, especially in North America.

Puma’s wholesale business increased by 19.9 percent to 1,864.6 million euros and the direct-to-consumer (DTC) business was up by 6.5 percent to 489.7 million euros. Sales in the company’s owned & operated retail stores increased 4.2 percent and e-commerce increased 11.8 percent.

Gross profit margin for the quarter decreased to 46.8 percent, while operating result (EBIT) improved by 12.6 percent to 258 million euros, resulting in an EBIT margin of 10.9 percent. The company’s net earnings improved by 1.8 percent to 146 million euros.

Puma reports 18.2 percent increase in nine-month sales

For the nine month period, the company’s sales increased by 18.2 percent (ca) to 6,269 million euros.

The company added that Americas led the growth with a 28.1 percent increase in sales, followed by the EMEA region with all key markets in Europe contributing strong growth to a 21.4 percent increase in sales.

Sales in the Asia/Pacific region were down 3.7 percent due to geopolitical tensions and Covid-19 related lockdown measures in Greater China, while other major markets in Asia/Pacific recorded growth.

All product divisions delivered growth, with footwear up 24 percent, apparel up 14.7 percent (ca) and accessories up 8.9 percent. The wholesale business was up 21.8 percent to 4,956 million euros and the direct-to-consumer business (DTC) increased by 6.4 percent to 1,312.5 million euros with growth in owned & operated retails stores of 11.1 percent and a decline in e-commerce of 2.1 percent.

Gross profit margin decreased to 46.8 percent, operating result (EBIT) improved to 600 million euros, resulting in an EBIT margin of 9.6 percent, while net earnings improved to 352 million euros.

Puma reiterates 2022 outlook

Despite the highly uncertain environment, Puma has reiterated its 2022 outlook for currency adjusted mid-teens sales growth, and an operating result (EBIT) in a range of 600 million euros to 700 million euros. The company’s net earnings are expected to improve accordingly.

In line with previous expectations, Puma estimates that inflationary pressures from higher freight rates and raw material prices, as well as operational inefficiencies due to Covid-19 and the Ukraine crisis will dilute the profitability in 2022.