Puma records strong sales and profit growth in Q1

Puma records strong sales and profit growth in Q1

Puma’s sales rose by 15.3 percent currency-adjusted or 16.6 percent
reported to 1,319.3 million euros (1,469.8 million dollars) in the first
quarter of fiscal 2019. The company said, Asia/Pacific, driven by China,
and the Americas contributed with double-digit sales growth, while sales in
EMEA also increased. In terms of divisions, Puma added, apparel was the
main growth driver in the quarter, followed by accessories and footwear.
The categories running and training, Teamsport, Motorsport and golf on the
performance side as well as sportstyle recorded strong growth along with
double-digit increase in both wholesale and direct-to-consumer sales.

Commenting on the first quarter trading, Bjorn Gulden, Chief Executive
of Puma SE said in a statement: “The first quarter of 2019 was the best
quarter Puma has ever seen. Revenues of 1,319 million euros (15.3 percent
currency adjusted) is the highest PUMA has ever achieved in a quarter and
the EBIT of 143 million euros (EBIT-margin 10.8 percent) was also the
highest absolute EBIT Puma has ever achieved. So, it has been a very good
start into the year.”

Review of Puma’s first quarter results

Puma’s gross profit margin improved by 80 basis points from 48.2 percent
to 49 percent in the first quarter driven by a favourable product mix with
higher growth in apparel and a favourable regional sales mix with higher
sales growth in the Asia/Pacific region. Currency effects, the company
said, also had a slight positive impact on the gross profit margin
development in the first quarter.

The operating result (EBIT) improved by 27 percent to 142.5 million
euros (158.7 million dollars) in the first quarter 2019 due to a strong
sales growth combined with a higher gross profit margin, corresponding to
an EBIT-margin of 10.8 percent compared to 9.9 percent in the first quarter
last year. Net earnings went up by 40.1 percent to 94.4 million euros (105
million dollars) in, supported by an improved financial result. As a
consequence, earnings per share improved from 4.51 euros to 6.31 euros
(7.03 dollars).

After a strong start into 2019 both in terms of sales and profitability,
Puma has confirmed its guidance for the full-year 2019, which was provided
on February 14, 2019. Sales are expected to report currency-adjusted growth
of around 10 percent, slight improvement in gross profit margin compared to
last year’s 48.4 percent, EBIT in a range between 395 million euros and 415
million euros and significant improvement in net earnings.

Picture credit:Puma media centre


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