Puma confirms higher forecast after Q2 bounce

German sporting goods maker Puma confirmed an increased full-year forecast on Wednesday after high-profile wins for sponsored teams helped it to increased sales and profits in the second quarter.
The Bavaria-based firm reported net profit of 21.9 million euros ($25.5 million) between April and June, compared with just 1.6 million in the second quarter last year.
Meanwhile, operating, or underlying profit grew from 11.9 million to 43.4 million on the back of sales of 969 million euros, up 16.3 percent in currency-adjusted terms compared with the same period in 2016.
Big wins on the football field for Puma-sponsored teams helped the group's leaping-cat logo to increased prominence in the second quarter, with Borussia Dortmund, Arsenal and Chivas claiming titles in Germany, Britain and Mexico.
The firm added new European squads to its sponsorship roster such as Germany's Borussia Moenchengladbach and France's Olympique de Marseille.
And celebrity endorsements from the likes of Cara Delevingne and Kylie Jenner helped along sales of women's shoes.
Based on its second-quarter performance, Puma expects to increase sales between 12 and 14 percent over the full year, adjusting for currency effects -- up from "a low double-digit percentage" increase previously.
The business increased its forecast earlier in July after its stronger-than-expected results.
It offered less detail on its bottom line, saying only that it expected net profits to improve "significantly" compared with last year's level of 62.4 million euros, on the back of an increased forecast of between 205 and 215 million for operating profits.
Looking to sporting events in the rest of the year, Puma has high hopes for the IAAF World Championship in London, where sprinters Usain Bolt and Andre de Grasse will bear its logo.
© 2017 AFP
Puma confirms higher forecast after Q2 bounce Puma confirms higher forecast after Q2 bounce Reviewed by Alexander Von Stern on 01:05:00 Rating: 5