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Puma sales and profit increase, expects FY21 sales to grow by 20 percent

By Prachi Singh

Jul. 29, 2021

Business

Image: Puma newsroom

Sales at Puma increased by 95.8 percent currency adjusted and 91.2 percent reported to 1,589.1 million euros. The company said, all regions and product divisions contributed with at least double-digit currency adjusted sales increases.

The company added that Americas reported the strongest currency adjusted growth of 181.8 percent, driven by strong demand for the Puma brand in the North American market, followed by EMEA, which improved 85.4 percent and Asia/Pacific witnessed an increase of 29.6 percent.

Among the product categories, footwear sales rose 114 percent, based on continued strong performance of our running and training as well as sportstyle categories, while apparel category sales were up 85.5 percent and accessories sales rose 72.2 percent in the second quarter of 2021. Compared to the second quarter of 2019, sales were up 36.3 percent with all regions and product divisions delivering double-digit increases.

“Despite a lot of operational issues, we saw very strong growth both in sales and profitability. Supply has been difficult with a shortage in freight capacity, harbor congestion and Covid-19 restrictions in certain sourcing countries. We are, of course, still worried about the impact Covid-19 will continue to have on our business in the short-term, now especially in the supply chain, but we continue to be very positive for the mid-term outlook for our sector in general and specifically for Puma,” said Bjørn Gulden, chief executive officer of Puma SE in a statement.

Puma reports strong Q2 results across retail segments

Puma’s wholesale business grew by 114.2 percent to 1,200 million euros. The direct to consumer business (DTC) increased by 54.7 percent to 389.1 million euros with growth in the company-owned and operated retail stores of 107 percent and e-commerce growth of 8.5 percent.

The gross profit margin in the second quarter improved by 360 basis points to 47.5 percent compared to 43.9 percent in Q2 2020 and 49.3 percent in Q2 2019. The operating result (EBIT) increased to 108.9 million euros compared to negative 114.8 million euros in Q2 2020 and 80.3 million euros in Q2 2019, which resulted in an improved EBIT margin of 6.9 percent compared to negative 13.8 percent in Q2 2020 and 6.5 percent in Q2 2019.

Net earnings in the quarter increased from negative 95.6 million euros to 48.7 million euros and earnings per share improved from negative 0.64 euros in the second quarter of 2020 to 0.33 euros in the second quarter of 2021.

Review of Puma’s first half performance

Puma’s first half sales increased by 53.6 percent currency adjusted and 47.3 percent reported to 3,137.9 million euros driven by double-digit growth rates in all regions and product divisions.

Compared to the first half of 2019, Puma’s sales grew 30 percent currency adjusted. The wholesale business was up 57.3 percent to 2,402 million euros while the direct to consumer business (DTC) increased by 42.7 percent to 735.9 million euros with growth in company-owned and operated retails stores of 49.2 percent as well as e-commerce sales increase of 33.5 percent.

The gross profit margin in the first half improved by 180 basis points to 48 percent compared to 46.2 percent in H1 2020 and 49.2 percent in H1 2019. The operating result (EBIT) increased to 263.2 million euros compared to negative 43.6 million euros in H1 2020 and 222.8 million euros in H1 2019, which resulted in an improved EBIT margin of 8.4 percent compared to negative 2 percent in the first half of 2020 and 8.8 percent in H1 2019.

Net earnings increased from negative 59.4 million euros to 157.8 million euros and earnings per share were up from negative 0.40 euros in the first half of 2020 to 1.06 euros in the first half of 2021.

In light of the sales and profitability growth, Puma added, the company now expects the currency-adjusted sales to increase at least 20 percent compared to previous outlook of mid-teens currency-adjusted sales growth in the financial year 2021. The operating result (EBIT) is now anticipated to come in between 400 million euros and 500 million euros compared to the previous outlook of significant improvement.