Puma pulled some impressive sales numbers during its third fiscal quarter, and the company is crediting star collaborations for the boost.
The German company reported a sales increase of 11 percent to €990 million ($1.11 billion), noting improved sell-through at its own stores and wholesale partners across all global regions. The company said more customers are buying its shoes at full price, surely pleasing retailers.
Puma CEO Bjørn Gulden attributed improved sell-through to the company’s fashionable collaborations with the likes of Rihanna and Kylie Jenner. Rihanna, who has been very involved with Puma, recently debuted a new, Fench-inspired collection at Paris Fashion Week.
“New product lines like the Fierce, the Platform, the Ignite Dual and the Fenty lines have shown to be “right” for the consumers and our marketing with personalities like Rihanna, Kylie Jenner, Cara Delevingne and, of course the unbelievable performance of Usain Bolt, have increased our brand heat,” said Gulden.
This all helped Puma’s net earnings rise an enormous 98 percent over the same period last year, up to €39.5 million ($44.1 million), well above the €33 million analysts had anticipated. The company said it does not expect to be affected by a strong U.S. dollar in part due to its strong North American sales, which helped keep gross profit margins stable at 45.8%.
Puma said it expects margins to remain stable for the remainder of its fiscal year, and is predicting full-year earnings before interest and taxation (EBIT) in the upper range of its predictions of €115 million-€125 million ($125.7 million-$136.6 million).