Puma’s Q1 sales and profit decline due to Covid-19

Puma’s sales declined in the first quarter of 2020 by 1.3 percent currency adjusted or 1.5 percent reported to 1,299.8 million euros (1,409 million dollars). Due to the negative impact of Covid-19 EBIT decreased by 50.1 percent to 71.2 million euros (77.1 million dollars), while net earnings went down by 61.6 percent to 36.2 million euros (39.2 million dollars and earnings per share decreased from 0.63 euros to 0.24 euros.

Commenting on the company’s performance, Bjørn Gulden, Chief Executive Officer of Puma said: “2020 started very well with a great order book, strong sell through and record retail numbers. Then, at the end of January, the Covid-19 virus hit China. APAC with China and Korea is recovering. Europe is hopefully also moving towards a recovery while the Americas, with almost all stores closed, are in the middle of the survive phase. The goal is to get through this without any Puma employee losing their job. The second quarter will financially be even worse with more than 50 percent of global sports and sport lifestyle space being closed.”

Puma’s first quarter results hit by the coronavirus pandemic

The company said in a statement that China, Japan and Korea were the most severely impacted countries and led to a decline of first quarter sales in the Asia/Pacific region of 12 percent currency adjusted, while the EMEA and Americas regions, having been negatively impacted since March 2020, still showed a slightly positive sales development, increasing by 3.5 percent and 3.1 percent currency adjusted respectively.

In terms of product divisions, the company added, footwear grew by 1.9 percent in constant currency while apparel and accessories were down 6.3 percent and 0.2 percent. Both wholesale and retail channels were significantly impacted by the store closures around the globe. At the end of the first quarter, almost all of company-owned and operated retail stores as well as the stores of Puma’s retail partners were closed. E-commerce grew around 40 percent in the first quarter.

The gross profit margin in the first quarter decreased by 140 basis points from 49 percent to 47.6 percent.

Picture:Puma newsroom