Puma raises full year outlook again after strong Q2 results

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Puma

Bumper sales in Puma‘s second quarter trading update have led the retailer to raise its expectations once again for the full year.

The sportswear retailer and apparel manufacturer’s second quarter saw a 16.3 per cent rise in currency adjusted sales and an 17.2 per cent rise in reported sales to €968.7 million (£863.5 million).

Meanwhile, net earnings increased from €1.6 million (£1.4 million) to €21.9 million (£19.5 million).

The German company said  all of its markets contributed with double-digit increases and while footwear continued to be the main growth driver, apparel also grew double-digit.

READ MORE:  Puma raises predictions after Q1 results

“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,”Puma chief executive Bjørn Gulden said.

“We now expect a currency adjusted sales growth for the full year between 12 per cent and 14 per cent and a full-year EBIT between €205 million and €215 million.” (£182.7 million-£191.6 million)

Puma’s operating result also increased from €11.9 million (£10.6 million) last year to €43.4 million (£38.6 million) due to strong sales growth combined with an improved gross profit margin.

Looking at the first half as a whole, sales grew by 15.8 per cent currency adjusted and 17.6 per cent reported to €1.97 billion (£1.75 billion), with all of Puma’s markets posting double-digit growth.

Finally, Puma‘s total retail sales went up by 21.8 per cent currency adjusted to €430.3 million (£383.3 million), achieved by positive like-for-like growth across its retail stores, strong growth in its ecommerce business and the opening of new additional stores.

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