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Puma Q1 net earnings jump 92.2 percent

By Prachi Singh

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Management

Puma's sales growth continued in the first quarter of 2017 with the company reporting an increase of 15.4 percent currency-adjusted or 18 percent reported to 1,005.1 million euros (1,093 million dollars). Net earnings improved by 92.2 percent to 49.6 million euros (53.9 million dollars) and earnings per share were up at 3.32 euros (3.61 dollars) compared to 1.73 euros (1.88 dollars) in the first quarter 2016.

Commenting on the first quarter trading, Bjørn Gulden, Chief Executive Officer of Puma said in a press release, “For the first time in the Puma history, we achieved sales exceeding 1 billion euros in a quarter. Our EBIT also developed very positively with a growth of 70 percent to 70 million euros. Therefore we have raised our outlook for the full year to low double digit growth in revenue and the full-year EBIT to be between 185 million euros and 200 million euros.”

Financial highlights of the quarter

The gross profit margin improved slightly by 30 basis points from 46.8 percent in the first quarter 2016 to 47.1 percent, which the company said was due to selective price adjustments and further improvements in sourcing.

The operating result (EBIT) increased by 70.1 percent to 70.2 million euros (76.3 million dollars), as sales grew stronger than operating expenses, supported by a slightly higher gross profit margin.

Puma raises FY17 outlook

In light of the strong first-quarter increase in sales and profitability as well as the positive business outlook for the current year 2017, Puma has raised the full-year guidance for its consolidated sales and operating result (EBIT). The management now expects that sales will increase currency-adjusted at a low double-digit percentage rate (previous guidance: currency-adjusted increase at a high single-digit percentage rate).

The guidance for the gross profit margin remains unchanged (improvement to approximately 46 percent; previous year: 45.7 percent). Operating expenses for the full-year 2017 are now expected to increase at a high single-digit percentage rate (previous guidance: mid to high single-digit percentage rate). As a consequence the operating result (EBIT) is now anticipated to come in between 185 million euros (201 million dollars) and 200 million euros (217 million dollars) against previous guidance of between 170 million euros (184 million dollars and 190 million euros (206 million dollars). In line with the previous guidance, the management still expects that net earnings will improve significantly in 2017.

Picture:Puma website

Puma