Puma shares fell 1.75 per `cent on Wednesday after the company confirmed its full-year guidance but warned of global market uncertainty.
Following what it called the best third quarter in its history, the German sportswear company reiterated its full-year operating result and sales outlook.
“We expect continued volatility in the market during the fourth quarter but are confident that we can deliver according to our full-year outlook,” said Puma Chief Executive Bjorn.
Earnings before interest and taxes (EBIT) increased 12.6 per cent year on year to 258 million euros ($257 million), while third-quarter sales increased 16.9 per cent year on year to 2.35 billion euros ($2.34 billion).
“Improved product availability due to a more stable supply chain, better than expected sell-through and Puma’s continued global brand momentum overcompensated all the negative external factors,” Gulden said.
Despite the ongoing effects of COVID-19-related lockdown measures in China, Puma reported third-quarter sales growth in the Asia/Pacific region.
For 2022, the company anticipates currency-adjusted sales growth of around 15 per cent and an EBIT of 600 to 700 million euros.
Puma’s results have proven resilient “in a worsening industry contest,” according to Jefferies equity analysts, following recent profit warnings from competitors Nike (NKE.N) and Adidas highlighting excess inventories across the industry. more info
Adidas (ADSGn.DE) cut its full-year guidance last week, citing weaker expectations for China, lower demand in major Western markets, and one-time expenses related to its exit from the Russian market.
(Adapted from BusinessOfFashion.com)