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Puma raises FY22 outlook on strong H1 performance

By Prachi Singh

Jul 27, 2022

Management

Image: Puma headquarters in Herzogenaurach

Second quarter sales at Puma increased by 18.4 percent currency adjusted (ca) or 26 percent reported to 2,002 million euros.

Considering the strong first half of the year, Puma is raising its outlook from previously at least 10 percent currency-adjusted sales growth – with upside potential – to mid-teens currency-adjusted sales growth. The company has reiterated operating result (EBIT) to be in a range of 600 million euros to 700 million euros for FY22 and a corresponding improvement in net earnings.

Commenting on the results, Bjørn Gulden, chief executive officer of Puma SE said in a release: “The second quarter was another great quarter for us. With a currency-adjusted growth of 18 percent (26 percent reported) to 2,002 million euros, we exceeded 2 billion euros in quarterly sales for the first time in Puma’s history. This underlines the strong demand for our products despite all the global obstacles and uncertainties.”

Puma sees high demand in the Americas and EMEA

The company said, a continued high demand for the Puma brand in the Americas region resulted in a strong sales growth of 25.6 percent (ca). Sales in EMEA were up 21.5 percent (ca), driven by strong growth across all key markets in Europe.

Sales in Asia/Pacific declined 1.8 percent (ca) due to Covid-19 related lockdown measures in Greater China, while other major markets in Asia/Pacific recorded strong growth.

All product divisions grew double-digit with footwear being up 19.7 percent (ca), apparel up 20.2 percent (ca) and accessories up 11.2 percent (ca). In line with previous quarters, growth was driven by continued strong demand for the company’s performance categories like running & training, teamsports, golf and basketball, as well as for the sportstyle category.

Puma’s wholesale business increased by 22.6 percent (ca) to 1,563.2 million euros and the direct-to-consumer (DTC) business was up by 5.5 percent (ca) to 438.8 million euros.

Sales in company-owned & operated retail stores increased 11.3 percent (ca), while e-commerce declined 4.1 percent (ca), mainly due to lockdown measures in Greater China.

The gross profit margin decreased by 100 basis points to 46.5 percent in the quarter. The operating result (EBIT) increased by 34.4 percent to 146.3 million euros and EBIT margin increased by 40 basis points to 7.3 percent.

Net earnings increased by 73.2 percent from 48.7 million euros to 84.3 million euros and earnings per share were up from 0.33 euros in the second quarter of 2021 to 0.56 euros in the second quarter of 2022.

Puma reports H1 sales rise of 19 percent

Puma’s sales in the first six months increased by 19 percent or 24.7 percent reported to 3,914.1 million euros.

The company added that Americas led the growth with a 33.6 percent (ca) increase in sales, followed by the EMEA region, with all key markets in Europe contributing strong growth to a 23.5 percent (ca) increase in sales. Sales in the Asia/Pacific region were down 10.4 percent (ca).

All product divisions grew double-digit, with footwear being up 18.9 percent (ca), apparel up 18.1 percent (ca) and accessories up 20.9 percent (ca).

The wholesale business was up 22.9 percent (ca) to 3,091.4 million euros and the direct-to-consumer (DTC) business increased by 6.2 percent (ca) to 822.8 million euros.

Sales in the company-owned & operated retail stores increased 15.8 percent (ca), while e-commerce declined 8.6 percent (ca).

The gross profit margin decreased by 120 basis points to 46.8 percent, while the operating result (EBIT) increased by 30.1 percent to 342.4 million euros and the EBIT margin improved by 30 basis points to 8.7 percent.

Net earnings increased by 30.3 percent from 157.8 million euros to 205.6 million euros and earnings per share were up from 1.06 euros in the first half of 2021 to 1.37 euros in the first half of 2022.

PUMA