Puma Q3 sales up 17.4 percent, per share earnings grow 2.64 euros

Puma has reported continued sales growth in the third quarter of 17.4 percent currency-adjusted or 13.3 reported to 1,121.8 million euros (1,319 million dollars). The company said, all regions supported the sales growth showing a double-digit increase. Footwear continued to be the main growth driver and accessories also increased double-digit, while apparel grew at a modest rate.

Commenting on the Q3 performance, Bjørn Gulden, Chief Executive Officer of Puma said in a media statement: “The third quarter was another good quarter for us with double-digit growth in all regions and strong growth in all product segments. With gross profit margin exceeding our expectations and a continued focus on operating expenses, we were able to deliver a very positive and better than expected operating result (EBIT). This development in the third quarter combined with a good order book for the fourth quarter made us raise the outlook for the full year.”

Highlights of Puma’s Q3 results

The gross profit margin improved by 230 basis points from 45.8 percent to 48.1 percent in the third quarter. The operating result (EBIT) increased from 60.3 million euros (70 million dollars) last year to 101.2 million euros (119 million dollars) due to strong sales growth combined with an improved gross profit margin.

Net earnings rose from 39.5 million euros (46 million dollars) to 62.1 million euros (73 million dollars) and earnings per share increased correspondingly from 2.64 euros (3.1 dollars) to 4.16 euros (4.89 dollars) in the third quarter.

Sales in the nine months rose 16.4 percent

Puma’s sales for the nine-month period increased by 16.4 percent currency adjusted and 16 percent reported to 3,095.6 million euros (3,641 million dollars). The company added that all regions showed double-digit growth with footwear being the main growth driver. Major gains were achieved by the running and training and sportstyle categories, with platform, suede, Basket Heart, Fierce and Ignite Limitless footwear styles performing well.

Including ecommerce, Puma's own and operated retail sales rose by 22percent currency adjusted to 673 million euros (791 million dollars), representing a share of 21.7 percent of total sales for the nine-month period against 20.6 percent in the previous year. The performance was achieved by positive like-for-like growth in the existing retail stores, opening of new stores and strong growth in the ecommerce business.

The gross profit margin improved by 120 basis points from 46.1 percent to 47.3 percent in the first nine months. The operating result (EBIT) improved from 113.5 million euros (133 million dollars) last year to 214.8 million euros (252 million dollars) in the period underlined by the improved operating performance, with strong sales growth, a higher gross profit margin and an improved operating leverage.

Net earnings almost doubled and came in at 133.6 million euros (157 million dollars) compared to 67 million euros (78 million dollars) last year. This result translates into earnings per share of 8.94 euros (10.5 dollars) compared to 4.48 euros (5.27 dollars) last year.

FY17 sales expected to rise between 14 to 16 percent

The management has raised full year outlook and now expects that currency adjusted sales will increase between 14 percent and 16 percent against previous guidance of currency adjusted increase between 12 percent and 14 percent. The gross profit margin is now anticipated to improve to approx. 46.5 percent compared to previous guidance of approximately 46 percent.

The operating result (EBIT) is now anticipated to come in between 235 million euros (276 million dollars) and 245 million euros (288 million dollars) against previous guidance of between 205 million euros and 215 million euros. In line with the previous guidance, the management still expects that net earnings will improve significantly in 2017.

Picture:Puma website