Puma full year sales and earnings jump

Sales at Puma increased by 14.3 percent currency adjusted (ca) and 16.2 percent reported to 1,767.1 million euros. Compared to the fourth quarter of 2019, total sales were up by 24.1 percent ca.

For the full year, sales increased by 31.7 percent (ca) and 30 percent reported to 6,805.4 million euros driven by double-digit growth rates in all regions and product divisions. Compared to 2019 levels, the group sales increased by 29.8 percent (ca).

Commenting on the results, Bjørn Gulden, chief executive officer of Puma SE said: “Despite all the issues and obstacles related to Covid-19 and political tensions around the world, we had the best year in Puma’s history. The sales growth of 32 percent to 6,805 million euros and an EBIT growth of 166 percent to 557 million euros are results that we are proud of. Compared to the pre-pandemic level in 2019, our sales even increased by 30 percent.”

Review of Puma’s Q4 performance

Among the regions, the company said in a statement, Americas reported the strongest sales growth of 31.3 percent ca, driven by continued high demand for the Puma brand in the North American and Latin American markets. EMEA recorded sales growth of 14.9 percent ca, driven by growth in Europe as well as emerging markets such as Russia, South Africa and Turkey.

Sales in Asia/Pacific declined 5.4 percent due to the current market environment in Greater China resulting from Covid-19 related restrictions and geopolitical tensions, while almost all other markets in Asia/Pacific reported double-digit growth rates.

All product divisions grew in the double-digits with footwear being up 15.6 percent ca, apparel 11.7 percent ca and accessories 17.4 percent ca.

Puma’s wholesale business grew by 16.5 percent (ca) to 1,208.1 million euros and the direct-to-consumer (DTC) business increased by 9.7 percent (ca) to 559 million euros. While sales in company-owned & operated retail stores increased by 21.5 percent (ca), e-commerce declined by 6.8 percent (ca).

The gross profit margin improved by 20 basis points to 48.2 percent. The operating result (EBIT) increased to 65 million euros and as a result of strong sales growth, improved gross profit margin and higher OPEX ratio, the EBIT margin came in at 3.7 percent.

Puma said net earnings decreased to 7.9 million euros due to a lower financial result and a negative impact attributable to non-controlling interests. Earnings per share decreased consequently to 0.05 euros compared to 0.16 euros in Q4 2020 and 0.12 euros in Q4 2019.

Highlights of Puma’s full year financial results

In terms of regions, Americas was leading the growth with a sales increase of 53.9 percent (ca) to 2,636.9 million euros. In the EMEA region, almost all countries contributed with double-digit increases to a sales growth of 28.2 percent (ca). Sales in Asia/Pacific region were up 10.6 percent (ca), as strong growth in markets such as India, Japan and Oceania more than compensated for the current market environment in Greater China.

The wholesale business was up 35 percent (ca) to 5,080.6 million euros while the direct-to-consumer business (DTC) sales increased by 22.8 percent (ca) to 1,724.8 million euros with growth in company-owned & operated retails stores of 30.3 percent ca and e-commerce 11.3 percent ca.

The gross profit margin improved by 90 basis points to 47.9 percent. The operating result (EBIT) increased to 557.1 million euros and the EBIT margin improved to 8.2 percent.

Net earnings increased from 78.9 million euros to 309.6 million euros and correspondingly earnings per share were up from 0.53 euros in the financial year 2020 to 2.07 euros in the financial year 2021.

Puma expects to report strong sales growth in 2022

Despite the uncertainties lasting into 2022, the company expects a strong currency-adjusted sales growth of at least 10 percent in the financial year 2022.

The company anticipates operating result (EBIT) to be in a range of 600 million euros and 700 million euros and net earnings to improve correspondingly.

Based on the positive net earnings in 2021, the management board and supervisory board will propose to distribute a dividend of 0.72 euros per share for the financial year 2021.