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GERMANY-EARNINGS-LEISURE-PUMA
China sales pump up Puma in record first quarter
FRANKFURT AM MAIN, April 26, 2019 (BSS/AFP) – German sportswear maker Puma
on Friday confirmed full-year business performance targets, saying massive
growth in China and its clothing division produced its best quarter ever
between January and March.
Net profit at the group hit 94.4 million euros ($105.2 million), up 40.1
percent year-on-year.
Sales were up 16.6 percent, at 1.3 billion euros, while operating, or
underlying profit mounted 27 percent to 142.5 million.
“The first quarter of 2019 was the best quarter Puma has ever seen,” chief
executive Bjorn Gulden said, hailing “growth in all regions and all product
divisions”.
Driven by China, sales in the Asia-Pacific region soared 28.6 percent,
while the Americas also saw double-digit growth.
Clothing was the fastest-growing product division with a 26.9-percent
boost, far outstripping footwear and accessories.
Both effects meant that Puma was able to nudge up its gross profit margin
from 48.2 to 49 percent.
The leaping-cat brand also continued its football sponsorship offensive,
announcing in April its logo would replace Nike’s on the balls of Spain’s La
Liga from the 2019-20 season.
It has also signed Manchester City and Valencia CF to its roster of clubs,
and entered an exclusive retail partnership with motorsport’s Formula One.
Looking ahead to the full year, Puma confirmed its objectives including
for 10-percent growth in sales, adjusting for exchange rate effects, and
operating profit between 395 and 415 million euros.
BSS/AFP/HR/1400