In advance of its financial release for the second quarter ended June 30, which is scheduled for July 29, Puma announced on July 16 that it will report an operating profit (Ebit) of about €109 million for the period, compared with a loss of €115 million a year earlier, on a currency-neutral sales increase of around 96 percent to €1,589 million.
The sales figure given for the quarter shows an increase of 30 percent from the second quarter of 2019. The company mentioned continued brand momentum, successful product launches with high sell-throughs and strong growth in all the regions, edpecially in North America.
The company also improved and refined its forecast for the full financial year. Currency-adjusted sales are now expected to go up by at least 20 percent, generating an operating result of between €400 million and €500 million and a significant increase in net earnings. Previously, Puma had given guidance for a significant improvement in operating earnings on a sales increase in the mid-teens.
The outlook assumes continued manufacturing operations in Vietnam, China and other key sourcing countries and no major interruptions due to Covid-19 – an important point in view of the recent coronavirus-related factory shutdowns in the Ho Chi Minh City area. It takes into account the strong growth in the second quarter as well the continued uncertainties remated to the pandemic, political tensions in key markets and supply chain constraints due to container shortages and port congestion.
Puma did not provide any details on gross margins or operating results.
Investors had evidently anticipated these very positive figures, as Puma’s share price declined slightly on the day of the announcement, more or less in line with the evolution of Euronext.
On Monday, July 19, Puma’s share price slid by a further 2.4 percent to €100.65, performing better than the German DAX stock market index, which fell by 4.2 percent. It went up slightly by 0.4 percent on the next day and it has continued to gain some ground since. Analysts blamed the rising concerns throughout the global economy over the rapid spread of the Delta variant of Covid-19.
Nike and Adidas lost 2.0 percent and 4.9 percent of their value, respectively, on July 19. While Adidas remained steady around a price of €309-310 per share in the next couple of days, Nike regained most of the lost ground, finishing at $161.08 yesterday.