Puma increases annual sales and profit forecast – Footwear News
Sports brand Puma said today that it saw sales rebound in the second quarter, in part on strong demand in North America, and the company improved its financial outlook for the full year.
The company said in a statement that second-quarter sales jumped 96% to 1.6 million euros (adjusted for currency), or $ 1.89 million, from 831 million euros it a year ago.
Also in the quarter, earnings before interest and taxes (EBIT) totaled 109 million euros, or $ 128.7 million, compared to a loss of 115 million euros a year ago, Puma reported.
The company cited the dynamics and growth of the brand in all regions.
As a result, Puma said it now expects annual sales to increase by at least 20% on a currency neutral basis, against an earlier forecast of an increase in mid-teens.
Annual profits are expected to “improve significantly,” the company said, with an EBIT forecast of between 400 and 500 million euros, or $ 472.2 million to $ 590.2 million at the current exchange rate.
In addition to sales strength in North America, the company also cited strong sales of new product launches. Puma recently teamed up with Haribo to create graphic T-shirts and shorts co-branded with Puma and Haribo and featuring classic Puma suede reimagined.
In June, Puma teamed up with White Castle to celebrate the restaurant’s 100th anniversary. They created a clothing capsule, including hoodies, t-shirts and shorts, covered in the fast food chain’s iconic white, blue and yellow color scheme.
These followed the release of the brand’s new Fierce 2 model in early June.
Puma, meanwhile, tempered expectations somewhat, saying its new outlook is subject to continued manufacturing operations in Vietnam and China and the absence of major issues related to the ongoing COVID-19 pandemic. .
Puma will release its full earnings report on July 29.