Puma ups 2019 ambitions after strong Q2, Man City deal

Puma ups 2019 ambitions after strong Q2, Man City deal

A Manchester City sponsoring deal has resulted in Puma's strong sales and profits in its second quarter.

Puma ‘s sales have risen in Asian markets such as China in its second quarter. (AFP pic)
FRANKFURT:
German sportswear maker Puma on Wednesday reported rising sales and profits in the second quarter, raising its full-year financial targets after a strong start to a sponsoring deal with Manchester City.

Net profits at Puma rose 59.7% year-on-year between April and June, to 49.7 million euros (US$55.5 million).

Sales rose 16.9%, to 1.2 billion euros, with Asian markets, especially China, and the Americas the main drivers with double-digit growth of over 20%.

Puma’s Europe, Middle East and North Africa region grew more slowly, at 8%.

And the company said it was able to ratchet its gross profit margin still higher, adding 0.7% points to reach 49.3.

“The second quarter of 2019 developed very positively,” chief executive officer Bjorn Gulden said, highlighting strong performance for the brand’s new footwear styles and fast-paced growth in sales through its expanding high street and online stores.

Looking ahead to the full year, Puma increased its forecast, in part because of a best-ever first-day performance for football kit with the new Man City strip launched in July.

Also in football, the firm can also look back on a quarter-final World Cup placement for the Italian women’s team.

And it will in future sponsor the balls used in Spain’s LaLiga as well as top-flight team Valencia CF.

Meanwhile it struck a long-term deal with Porsche in motorsport and brought out new shoes to accompany its return to basketball.

Away from sport, singer Selena Gomez’s Cali shoes were popular in the first half.

In financial terms, Puma now expects currency-adjusted sales to rise 13%, rather than 10% as before.

With a higher-than-expected gross profit margin, the firm expects to make an operating profit of between 410 -30 million euros, shifting its previous range upwards by 15 million euros.

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