Thursday, 28 July 2016

Puma Q2 Sales Up 7 Percent After Strong Euro Performance.

Puma has scored another quarter of sales growth, boosted by the Euro 2016 soccer tournament and strong demand for its women’s lines, fronted by Rihanna and Kylie Jenner.

The Herzogenaurach, Germany-based firm, which is controlled by French group Kering, said total sales rose 7 percent to 826.5 million euros, or $933.3 million, with apparel the main driver. On currency-adjusted terms, the gain stood at 13 percent.

Net earnings totaled 1.6 million euros, or $1.8 million, in the three months ended June 30, compared with a loss of 3.3 million euros, or $3.6 million, during the same period a year earlier. Meanwhile, Puma’s operating profit rose 75.1 percent to 11.9 million euros, or $13.4 million.

All dollar rates are calculated at average exchange rates for the period concerned.

The firm reiterated its 2016 guidance for a high single-digit increase in net currency-adjusted sales; a gross profit margin in line with last year’s level of 45.5 percent; and an operating result between 115 million euros and 125 million euros, or $126.4 million to $137.4 million at current exchange rates.

“We are happy with the development in the second quarter. Sales developed as expected with double-digit organic growth,” said Bjørn Gulden, chief executive officer of Puma. He noted a continued improvement in sell-out as consumers are flocking back to the brand.

“We felt that our teams and players in Euro 2016 in France gave us a lot of good visibility. We now see that our women initiatives with products and marketing around Rihanna and Kylie Jenner are working very well. Finally, we are looking forward to great Olympic days in Rio where fantastic athletes like Usain Bolt will be wearing our innovative and design driven products,” Gulden added.

Nonetheless, Puma’s gross profit margin declined in the quarter to 45.6 percent from 46.7 percent in the prior-year period due to the negative impact of the stronger U.S. dollar. The decrease was reflected in all product segments.


Footwear News.
Full story at Yahoo News.

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