Puma SE reported earnings that topped analysts’ estimates as demand in China rebounds for sneakers and apparel.
(Bloomberg) — Puma SE reported earnings that topped analysts’ estimates as demand in China rebounds for sneakers and apparel.
Second-quarter operating profit of €115 million ($127 million) beat the €110-million average analyst estimate, according to a statement Wednesday. The shares rose as much as 2.9% in early Frankfurt trading.
The recovery in demand in China boosted the German company’s business in Asia, where sales jumped by about a quarter. Demand was also strong in Europe and Latin America. Puma confirmed its guidance, saying that if momentum keeps picking up in the third quarter it may raise the financial targets later this year.
Puma’s progress will rely, in part, on reigniting growth in North America, where revenue fell as the company tries to reduce its dependence on cheap wholesale products.
Since taking over as chief executive officer in January, Arne Freundt has sought to maintain the fast growth of recent years by focusing instead on higher-priced soccer, basketball and running sportswear in the US as well as winning market share in China, where larger rivals like Nike Inc. and Adidas AG have struggled.
Big shoemakers are also fending off fast-growing smaller brands like On Holding AG and Hoka, which are especially gaining ground in running.
Puma has also extended the contract of Chief Financial Officer Hubert Hinterseher through 2027, it said.
Puma shares are roughly flat this year, outperforming Nike but well behind cross-town rival Adidas.
(Updates with shares in second paragraph)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.