Puma raises FY guidance amid "strong" Q3
In light of a "strong" third-quarter increase in sales and profitability, as well as the positive business outlook for the fourth quarter, German sportswear brand Puma has raised its full-year guidance for the third time this year.
Currency adjusted consolidated sales in the three month period increased by around 17% - and 13% in reported terms - to EUR1.12bn (US$1.44bn), the company said in a preliminary trading update yesterday (18 October). This compared to sales of EUR990m in the year-ago quarter.
The operating result (EBIT) for the quarter jumped 68.3% to reach EUR101m from EUR60m last year, the Kering controlled company said.
In light of the strong third-quarter increase in sales and profitability, as well as the "positive business outlook" for the fourth quarter, Puma has raised the full-year guidance for its consolidated sales, gross profit margin, operating expenses and operating result (EBIT).
Management now expects sales to increase, currency adjusted, between 14% and 16% compared to previous guidance of between 12% and 14%. Gross profit margin meanwhile, is now anticipated to improve to 46.5%, compared to previous guidance of 46%.
Due to the expected increase in sales, operating expenses are expected to increase at a low double-digit percentage rate, compared to previous guidance of a high single-digit percentage rate. As a consequence, the operating result (EBIT) is now anticipated to come in between EUR235m and EUR245m. This compares to previous guidance of between EUR205m and EUR215m.
In line with earlier guidance, management maintains net earnings will improve "significantly" in 2017.
A complete overview of Puma's business development for the third quarter and the first nine months of 2017 will be published on 24 October.