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Puma confirms full-year outlook, flags market volatility

Published 10/26/2022, 02:28 AM
Updated 10/26/2022, 07:51 AM
© Reuters. FILE PHOTO: The logo of German sports goods firm Puma is seen on a shoe after the company's annual news conference in Herzogenaurach February 20, 2014.    REUTERS/Michaela Rehle

By Alexander Hübner and Joice Alves

BERLIN/LONDON (Reuters) - Shares in Puma fell 1.75% on Wednesday after the company confirmed its full-year guidance but flagged uncertainty in the global market.

The German sportswear maker reiterated its full-year operating result and sales outlook, after what it said was the best third quarter in its history.

"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.

The company said its earnings before interest and taxes (EBIT) rose by 12.6% on the year to 258 million euros ($257 million) while third-quarter sales rose a currency-adjusted 16.9% 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 continued effects of COVID-19-related lockdown measures in China, Puma saw sales growth in the Asia/Pacific region in the third quarter, it said.

The company expects currency-adjusted sales growth of around 15% and an EBIT between 600 and 700 million euros for 2022.

Jefferies equity analysts said Puma's results have proven resilient "in a worsening industry contest" after recent profit warnings from competitors Nike (NYSE:NKE) and Adidas (OTC:ADDYY) highlighting excess inventories across the industry.

Last week, German sporting goods maker Adidas cut its full-year guidance, citing weaker expectations for China, lower demand in major Western markets and one-off expenses related to its exit from the Russian market.

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