Puma buoyant as FY earnings more than double
Puma buoyant as FY earnings more than double | Apparel Industry News | just-style
German sportswear brand Puma is looking to increase its operating profit by another third during its current financial year, building on the momentum that saw its full-year revenue top EUR4bn (US$4.9bn) for the first time in 2017.
The company also expects sales to increase by around 10% in constant currencies in 2018, building on the currency adjusted EUR4.14bn achieved last year.
Reporting its full-year results on Monday (12 February), Puma said that not only did it pass the EUR4bn sales mark for the first time in 2017, but all regions saw double-digit growth.
Its full-year earnings before interest and taxation (EBIT) more than doubled to EUR245m from EUR128m, as did net earnings, which climbed to EUR136m from EUR62m a year earlier.
"This momentum, together with positive feedback from consumers and our retail partners, makes us look positive into 2018," said CEO Bjørn Gulden. "We expect to increase our sales around 10% in constant currencies in 2018 and we expect to increase our EBIT to between EUR305m to EUR325m."
Puma is in the process of being spun off by French parent, luxury goods group Kering, which this week said it plans to distribute a one-off dividend of EUR12.50 per share to reduce its ownership in the sporting goods firm.
Kering will retain the 16% of shares outstanding, while French holding company Artémis will become a long-term strategic shareholder with an ownership of around 29%. A further 55% of the brand's shares will be traded publicly.