- Q2 EBIT grows 34.4% y/y to 146 million euros
- Surpasses 2 bln euros in quarterly sales for the first time
- Raises full-year 2022 revenue outlook
- CEO says the company ‘cannot expect growth in China in 2022’
German sportswear maker Puma (PUMG.DE) announced better-than-expected second-quarter earnings on July 27 and lifted its full-year revenue outlook, dealing with headwinds in China better compared with rival Adidas (ADSGn.DE).
Puma said its earnings before interest and taxes (EBIT) increased by 34.4% on the year to 146 million euros ($148 million), in contrast with analysts’ average forecast for 128.94 million euros.
It lifted its full-year-sales forecast to a mid-teens percentage increase in currency-adjusted terms, from at least 10% – with upside potential – previously, and kept its full-year EBIT guidance.
Adidas on Tuesday slashed its 2022 earnings target, citing a weaker-than-expected recovery in China from pandemic restrictions.
“It’s not easy for everyone,” Puma Chief Executive Bjorn Gulden said, adding his company “cannot expect growth in China in 2022”.
But he said:
“We feel that the increased investments into R&D, innovation, and product development over the past years are starting to pay off.”
Second-quarter sales increased by 18.4% in currency-adjusted terms to 2.002 billion euros. The firm said it saw sharp growth in all its performance categories, such as basketball, running, golf, team sports, and training.
Adidas criticized COVID-19 restrictions in China for a sales drop there. Puma’s Gulden found the major reason as calls for boycotts against Western textile firms, which have been aimed on social media, in regards to Western criticism of China’s treatment of the Uighur minority in the Xinjiang region.
Late last month, Puma rival Nike Inc (NKE.N) estimated first-quarter revenue beneath forecasts as it planned to give more discounts and struggled with pandemic-related disruptions in China, its most productive market.
“We do see an increased level of uncertainty around the world,” Gulden said, but added: “I remain optimistic for our sector in general and the PUMA brand in particular”.
($1 = 0.9861 euros)