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Puma Asia-Pacific records most growth in Q2

Puma Q2 profit sales growth news - Retail in Asia

Puma reported significant earnings gains in its second quarter 2017, as total sales climbed 16%, pushed on by growth in footwear and apparel, and increases in Asia-Pacific revenues, which recorded the most growth globally.

The German sportswear firm said sales jumped 16.3% currency-adjusted to €968.7 million ($1.14bn) and grew 17.2% in euros.

By category, footwear led the way with sales of €463.0 million ($543.4m), up 28.5% in euros and 27.2% on a currency-neutral basis.

Apparel revenues were €334.8 million ($461.1m), up 11.9% on a reported basis and 11.4% currency-neutral. Accessory sales reached €170.9 million ($200.6m), up 2.3% in euros and 1.3%currency-neutral.

The company said it achieved double-digit growth in all regions, with Asia-Pacific outpacing other geographies, where sales increased 20.8% in the quarter to €229.0 million ($268.8m) and grew 19.5% currency-neutral. In the EMEA region, sales improved 19.9% to €385.1 million ($452m), gaining 20.1% currency-neutral.

Sales in the Americas grew 12.4% to €354.6 million ($416.2m) and added 10.5% on a currency-neutral basis.

SEE ALSO: François-Henri Pinault steps down from Puma’s board of directors

Puma said revenues were also positively impacted by the successful “Do You” campaign continues around celebrities such as Cara Delevingne, the New York City Ballet and Kylie Jenner.

EBIT increased from €11.9 million last year to €43.4 million ($50.9m), or 4.5% of sales, due to strong sales growth combined with an improved gross profit margin.

Net earnings increased from €1.6 million to €21.9 million ($25.7m) and earnings per share were up correspondingly at €1.46 compared to €0.11 in the second quarter last year.

As noted on July 17, Puma now expects that currency-adjusted sales will increase between 12% and 14% for the year, up from previous guidance calling for an increase at a low double-digit percentage rate.

EBIT is now anticipated to come in between €205 million and €215 million, up from previous guidance between €185 million and €200 million). EBIT was €128 million in 2016.

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