Puma continues its upward journey with another successful quarter.
The Germany-based company and subsidiary of Kering saw a sales increase of 16.3% percent to 968.7 million euros, around $1.26 billion in the second quarter, compared to 826.5 million euros, around $961 million during the same period last year. Puma saw double-digit growth across all regions, with footwear serving as its main driver.
Net earnings grew from 1.6 million euros, around $1.86 million, to 21.9 million euros, around $25.5 million and earnings per share (EPS) increased accordingly at 1.46 euros, or $1.7 compared to 0.11 euros, or $0.13, during the same time last year.
Gross profit margin increased 90 basis points to 46.5%. The operating result increased from 11.9 million euros, or $13.8 million last year to a whopping 43.4 million euros, around $50.5 million this year due in part to a strong sales increase and an improved gross profit margin.
“In another positive quarter, we achieved double-digit growth in all regions and in both footwear and apparel. This combined with a good sell-through in retail and a good orderbook for the next quarters made us raise the outlook for the full year,” said CEO Bjørn Gulden. “We now expect a currency adjusted sales growth for the full year between 12% and 14% and a full-year EBIT between € 205 million, around $238.4 million and 215 million, around $250 million.”
Puma attributes its success to its footwear offerings, mentioning its new Netfit technology introduced across Performance and Sportstyle footwear. Not to mention celeb-studded campaigns including the likes of Kylie Jenner, Cara Delevingne and its collaboration with Rihanna, which help the athletic brand dip into high-fashion.
The brand increases its outlook and full-year guidance for its consolidated sales and operating result. The company now expects currency adjusted sales to grow between 12 percent and 14 percent, as opposed to its previous anticipation of a low double-digit percentage rate. The operating result (EBIT) is now expected to be between 205 million euros, or $238.4 million, and 215 million euros, or $250 million, which Puma previously expected to stand between 185 million euros, or $215 million, and 200 million euros, or $232.6 million.