Puma Q2 sales jump 16.3 percent, raises full year outlook
Puma said sales grew 16.3 percent currency adjusted and 17.2 percent reported in the second quarter to 968.7 million euros (1,127 million dollars). The company said, all regions contributed with double-digit increases and while footwear continued to be the main growth driver, apparel also grew double-digit. Net earnings increased from 1.6 million euros (1.8 million dollars) to 21.9 million euros (25.4 million dollars) and earnings per share were up at 1.46 euros (1.69 dollars) compared to 0.11 euro (0.13 dollar) in the second quarter last year.
Commenting on the second quarter trading, Bjørn Gulden, Chief Executive Officer of Puma said in a media release: “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 order book for the next quarters made us raise the outlook for the full year. We now expect a currency adjusted sales growth for the full year between 12 percent and 14 percent and a full-year EBIT between 205 million euros and 215 million euros.”
Q2 gross profit margin improves, H1 sales jump 15.8 percent
Puma added that the gross profit margin improved, despite negative currency effects, by 90 basis points from 45.6 percent to 46.5 percent. The operating result (EBIT) increased from 11.9 million euros (13.8 million dollars) last year to 43.4 million euros (50 million dollars) due to strong sales growth combined with an improved gross profit margin.
Sales for the first half-year 2017 improved by 15.8 percent currency adjusted and 17.6 percent reported to 1,973.8 million euros (2,297 million dollars) with all regions witnessing double-digit growth. Major gains, the company said, were achieved by the running and training and sportstyle categories, with platform, suede, Basket Heart and Ignite Limitless footwear styles performing well.
Including ecommerce, Puma’s own and operated retail sales increased by 21.8 percent currency adjusted to 430.3 million euros (500 million dollars), which represents a share of 21.8 percent of total sales for the first half of 2017 against 20.5 percent in the previous year. The company said, performance was achieved by positive like-for-like growth in our existing retail stores, strong growth in our ecommerce business and opening of new additional stores.
The gross profit margin improved by 60 basis points from 46.2 percent to 46.8 percent in the first half-year 2017 due to further improvements in sourcing and selective price adjustments. The operating result (EBIT) more than doubled from 53.2 million euros (61.8 million dollars) last year to 113.6 million euros (132 million dollars) in the first half of 2017. Net earnings reached 71.5 million euros (83.1 million dollars) against last year’s 27.4 million euros (31.8 million dollars) and earnings per share were 4.79 euros (5.57 dollars) compared to 1.84 euros (2.14 dollars) last year.
Puma raises full year outlook
In light of the strong second-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 currency adjusted sales will increase between 12 percent and 14 percent (previous guidance: currency adjusted increase at a low double-digit percentage rate).
The operating result (EBIT) is now anticipated to come in between 205 million euros (238 million dollars) and 215 million euros (250 million dollars) against previous guidance: between 185 million euros (215 million dollars) and 200 million euros (232 million dollars). In line with the previous guidance, the management still expects that net earnings will improve significantly in 2017.