Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

High demand pushes Puma's Q1 results above expectations

Economy Apr 27, 2022 05:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: The logo of German sports goods firm Puma is seen at the entrance of one of its stores in Vienna, Austria, March 18, 2016. REUTERS/Leonhard Foeger

By Zuzanna Szymanska

FRANKFURT (Reuters) -German sportswear maker Puma reported stronger-than-expected first-quarter results on Wednesday as high demand from both retailers and consumers more than offset the impact of the war in Ukraine and supply chain bottlenecks.

"We see that sports participation has grown again during COVID and also after COVID," Chief Executive Bjorn Gulden told a news conference, adding Puma had also benefited from the trend to wear sneakers as part of everyday clothing.

The company said its earnings before interest and taxes (EBIT) rose 27% to 196 million euros ($208.62 million) in the first three months of 2022, compared with analysts' average forecast for EBIT of 181.5 million euros.

Puma grew sales in all product categories thanks to the return of team sports after COVID-19 restrictions, the company's efforts to make basketball "cool again" among U.S. teenagers and the pandemic-sparked popularity of outdoor sports, Gulden said.

"We clearly have a running boom," the CEO said.

"And golf has had a great recovery. You know, golf was one of the few sports that you could do during COVID," he added. "And after many years of stagnating numbers, we see two years ago great growth rates also among young people."

At the same time, Puma's agreements with Danish shipping company Maersk and unabated investments in logistics allowed it to push enough product through the tight supply chain to partly fulfil the high demand, Gulden said.

"Without the geopolitical situation, I think we would clearly have been more optimistic and would have upgraded our outlook," Gulden said.

Amid the COVID outbreak in China and the Ukraine war, Puma will have to focus on mid-term growth by market share gains over short-term profit optimization with higher prices, which will raise its expenditures and hurt gross margin, the CEO said.

In late March, Puma's U.S. rival Nike (NYSE:NKE) reported a sales beat for its third quarter that ended Feb. 28 as it reopened its Vietnam factories after COVID closures, allowing the company to take advantage of surging demand.

Puma's German rival Adidas (OTC:ADDYY) will publish first-quarter results on May 6.

($1 = 0.9395 euros)

High demand pushes Puma's Q1 results above expectations

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email