German sportswear company Puma said it is still on track for a strong performance in 2017, as third-quarter sales gained significantly, on the back of its women’s collaborative sneaker collection and celebrity endorsements.
In the three months ended September 30, Puma revealed a 17% increase in currency adjusted consolidated sales to €1.12 billion ($1.32bn), compared to €990 million ($1.05bn) in the prior year’s period.
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Moreover, the operating result (EBIT) for the quarter rose to approximately €101 million ($118m) from €60 ($70m) million a year earlier, said the Herzogenaurach, Germany-based firm, in a statement.
By region, third-quarter sales rose a currency-adjusted 23% in Europe, Middle East and Africa, 16% in the Americas and 10% in Asia-Pacific.
The Kering-owned sportswear and sneaker firm said sales were driven by footwear, up 23%, and accessories, which rose 24%. Recording single-digit growth, apparel sales were up 8%.
By product, Puma’s Basket Heart sneakers and Ignite Limitless running shoes were the most popular, while popster Rihanna — and her collaborative Fenty collection launched in September 2017, helped boosted women’s sales. As did ‘it’ girl Selena Gomez, bolstering Puma’s celeb appeal via Instagram.
Looking forward, Puma raised its guidance for operating result for the year, expecting between 235 million euros and 245 million euros, compared to a previous range of between 205 million euros and 215 million euros.
Net earnings are expected to improve significantly in 2017, the company added.
In recent quarters, there has been industry talk of a sale of Puma by the French luxury group, which Puma’s chief executive downplayed in an earnings conference call on Tuesday.
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“I think every quarter there is another article or a report saying that Kering’s selling, there’s nothing new,” said chief executive Bjørn Gulden.
“I haven’t heard anything about it, so for me nothing has changed.”
Kering acquired Puma in 2007.