PUMA RAISES OUTLOOK FOR OPERATING PROFIT
Strong sales seen in Americas, Asia
GERMAN sportswear firm Puma raised its outlook for full-year sales and operating profit yesterday as it reported strong sales growth in the Americas and Asia and said its first basketball shoe in 20 years had been well received.
Third-quarter sales rose a currency-adjusted 14 per cent to €1.242 billion (RM5.91 billion), while operating profit rose 28 per cent to €130 million, beating average analyst forecasts for €1.2 billion and €119 million, respectively.
Puma saw sales rise almost 16 per cent in the Americas in the quarter and 23 per cent in Asia, showing little of cooling in the region even as concerns grow that a trade war between Beijing and Washington will curb spending by Chinese shoppers.
Puma has revived its fortunes in recent years by putting a big focus on soccer and running, while partnerships with celebrities like singers Rihanna and Selena Gomez have boosted its popularity among women.
It is now making a drive to widen its appeal in the United States market by returning to basketball, naming Jay-Z as its creative director for the sport and signing sponsorships with four top picks in the National Basketball Association draft.
Chief executive Bjorn Gulden said the pre-launch of its new basketball line last month had gone well: “Although it is early days, the sell-through of our first shoe model has been very positive.”
Puma said it expected that currency-adjusted sales this year to rise between 14 and 16 percent, up from 12 to 14 per cent.