Third quarter sales at Puma increased by 20.4 percent currency adjusted and 20 percent reported to 1,900.4 million euros. Compared to the third quarter of 2019, total sales were up 35.4 percent currency adjusted.
Commenting on the third quarter trading, Bjorn Gulden, chief executive officer of Puma SE said: “The third quarter was another very strong quarter for us. Despite a lot of operational problems, we grew our sales by 20 percent and were able to increase our EBIT from 190 million euros to 229 million euros in the quarter. We foresee the high demand for our products to continue, but we also see supply constraints continue to be a problem for the rest of the year.”
Puma reports earnings growth in Q3
The company said in a statement that Americas reported the strongest growth of 31.2 percent currency adjusted, driven by continued high demand for the Puma brand in the North American and Latin American markets.
EMEA recorded growth of 22.3 percent, which was driven by strong demand in Europe and emerging markets such as Russia, Turkey and South Africa. Asia/Pacific grew 1.7 percent despite a difficult market environment in Greater China and Covid-19 related lockdowns in markets such as Japan, South East Asia and Australia.
In terms of product divisions, footwear was up by 21.6 percent, based on continued strong demand for performance and sportstyle categories. Apparel sales rose 21.3 percent and accessories were up 15.2 percent.
Puma’s wholesale business grew by 22.6 percent to 1,470.5 million euros and the direct-to-consumer (DTC) business increased by 13.3 percent to 429.9 million euros, with growth across owned & operated retail stores up 18 percent and e-commerce up 4 percent.
The gross profit margin in the third quarter improved by 40 basis points to 47.4 percent. Net earnings increased from 113.6 million euros to 143.8 million euros and earnings per share improved from 0.76 euros in the third quarter of 2020 to 0.96 euros in the third quarter of 2021.
Review of Puma’s nine months financial performance
Sales for the nine month period increased by 39.1 percent currency adjusted and 35.6 percent reported to 5,038.3 million euros driven by double-digit growth rates in all regions and product divisions.Compared to the first nine months of 2019, sales grew 32 percent. The wholesale business was up 42 percent to 3,872.5 million euros while the direct-to-consumer business (DTC) increased by 30.3 percent to 1,165.8 million euros with 35 percent growth in owned & operated retails stores as well as 22.5 percent in e-commerce.
The gross profit margin in the first nine months improved by 130 basis points to 47.8 percent. The operating result (EBIT) increased to 492.1 million euros, which led to an improved EBIT margin of 9.8 percent. Net earnings increased from 54.2 million euros to 301.7 million euros and earnings per share were up from 0.36 euros to 2.02 euros in the first nine months of 2021.
Considering the strong financial performance in the first nine months of the year, Puma now expects the currency-adjusted sales to increase at least 25 percent compared to previous outlook of at least 20 percent currency-adjusted sales growth) in the financial year 2021. The operating result (EBIT) is now expected to be in a range between 450 million euros and 500 million euros compared to the previous outlook of between 400 and 500 million euros. The company added that the net earnings are still expected to improve significantly in 2021.