German sports brand Puma posts stellar Q3 results; raises FY21 outlook

28
Oct '21

Pic: Puma

Puma, a leadin German sports brand, has reported a 20.0 per cent sales growth to €1,900.4 million in the third quarter (Q3) of FY21 ended on September 30, 2021, over the same period of previous fiscal. With the continued sales momentum throughout the first nine-months, the company has raised its sales forecast and expects sales to rise overall 25 per cent in FY21, up from previous target of 20 per cent.

“A COVID-19 related lockdown of production in South Vietnam, an overheated global freight market with high rates and a lack of capacity, port congestion and a very difficult market situation in China were hurdles we had to overcome in the quarter. Demand for our products was high, our teams worked very hard to deliver as much product as possible and we continued to be as flexible and service-minded for our partners as we could be,” Bjorn Gulden, chief executive officer of Puma, said in a press release.

During the third quarter, Puma’s gross profit totalled to €900.8 million (€745.0 million), while operating result improved to €228.9 million (€189.5 million). Moreover, the net income for the three-month period rose to €143.8 million (€113.6 million).

By region, the sportswear company’s sales from Europe, the Middle East and Africa (EMEA) increased by 22.5 per cent to €813.7 million (€664.1 million), driven by strong demand in Europe and emerging markets such as Russia, Turkey and South Africa. While sales from Americas went up by 28.0 per cent to €700.1 million (€546.8 million).

Furthermore, despite a difficult market environment in China and COVID-19 related lockdowns in markets such as Japan, South East Asia and Australia, the Asia/Pacific region recorded a 3.8 per cent surge in sales to €386.6 million (€372.5 million).

Among the product categories, footwear sales accelerated by 20.9 per cent to €846.9 million (€700.5 million) led by strong demand for performance and sportstyle categories. Apparel sales too jumped by 21.1 per cent to €735.2 million (€607.0 million).

“We foresee the high demand for our products to continue, but we also see supply constraints continue to be a problem for the rest of the year. We will continue to manoeuvre through the operational problems as well as possible, but we will also continue to invest in our brand, products and infrastructure for the mid and long term. The outlook for our industry in general and for Puma in particular is in my opinion very positive,” Gulden concluded.

Fibre2Fashion News Desk (JL)

More Puma AG News... More Apparel/Garments News - Germany...