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Puma announces financial results

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Sportswear brand PUMA reported sales increased by 95.8 percent in the second quarter 2021.

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Bjørn Gulden, Chief Executive Officer of PUMA SE, said, “The second quarter was a very good quarter for us. Despite a lot of operational issues, we saw very strong growth both in sales and profitability. Supply has been difficult with a shortage in freight capacity, harbor congestion and COVID-19 restrictions in certain sourcing countries. I am very proud of how our organization has maneuvered through all of these issues and how we managed to achieve these results in the second quarter.”

“Demand for our products in performance, comfort and lifestyle has been strong. The cooperation with our sourcing and retail partners has become even stronger during the COVID-19 pandemic and this continued to help us in the second quarter. We are, of course, still worried about the impact COVID-19 will continue to have on our business in the short-term, now especially in the supply chain, but we continue to be very positive for the mid-term outlook for our sector in general and specifically for PUMA. We are very proud of Italy having won the European Championship in football, playing in our products, and we look forward to great Olympic Games in Tokyo,” continued Gulden.

In the second quarter 2021, PUMA reported that sales increased by 95.8 percent (ca) to US$1,887 million (+91.2 percent reported). All regions and product divisions contributed with at least double-digit sales increases (ca). Americas reported the strongest growth of 181.8 percent (ca), driven by strong demand for the PUMA brand in the North American market, followed by EMEA, which improved 85.4 percent (ca) and Asia/Pacific being up 29.6 percent (ca). Footwear was the growth driver (+114.0 percent ca), based on continued strong performance of our Running and Training as well as Sportstyle categories. Also, Apparel (+85.5 percent ca) and Accessories (+72.2 percent ca) showed strong growth in the second quarter of 2021. Compared to the second quarter of 2019, sales were up 36.3 percent (ca) with all regions and product divisions delivering double-digit increases.

PUMA’s Wholesale business grew by 114.2 percent (ca) to US$1,425 million. The Direct to Consumer business (DTC) increased by 54.7 percent (ca) to US$462 million with growth in owned & operated retail stores (+107.0 percent ca) and e-commerce (+8.5 percent ca). After stores gradually reopened in the second quarter, demand shifted partially from the e-commerce channel to retail stores, while the overall underlying demand for the PUMA brand was strong.

The gross profit margin in the second quarter improved by 360 basis points to 47.5 percent (Q2 2020: 43.9 percent / Q2 2019: 49.3 percent). The improvement in gross profit margin was driven by better sell-through and less promotional activity, while inefficiencies in the supply chain including inbound freight had a negative impact.

Operating expenses (OPEX) increased by 34.5 percent to US$772 million (Q2 2020: US$574 million / Q2 2019: US$631 million) due to higher marketing expenses as well as sales-related distribution and warehousing costs. As a result of COVID-19, PUMA continued to face operating inefficiencies in its business. The OPEX ratio in percent of total sales decreased from 58.2 percent in the second quarter of 2020 to 40.9 percent in the second quarter of 2021 (Q2 2019: 43.3 percent).

The operating result (EBIT) in the second quarter increased to US$129 million (Q2 2020: US$136 million / Q2 2019: US$95 million) due to strong sales growth, higher gross profit margin and continued OPEX control. This resulted in an improved EBIT margin of 6.9 percent in the second quarter of 2021 (Q2 2020: -13.8 percent / Q2 2019: 6.5 percent).

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Net earnings increased from -US$113 million to US$57 million and earnings per share improved from US$-5.91 in the second quarter of 2020 to US$0.39 in the second quarter of 2021.