Footwear Slowdown Clothing Repair Puma Puma Maintained High Growth Price Surged 10%

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CEO Bj o RN Gulden

In the three quarter, Puma SE SE's footwear sales growth plummeted to a single digit, slowing from 18.4% in the 26.3% quarter and two quarter in the first quarter to 6.1%.

Management has turned to fashion sales in recent years with the trend of big logo casual sportswear. In the three quarter, the growth rate of the category 26.8% was significantly higher than that of the two quarter, so that the group achieved 13.9% of the fixed exchange rate revenue growth, which would not be substantially slower than the 15% quarter of the two quarter.

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The trend has changed from classic retro to a publicity style represented by "Daddy shoes", and the high-tech function model is also more popular.

He expects clothing category to continue to lead group growth before the first quarter of 2019, and hopes that sales of footwear will rise again when the largest source of income is available.

Jay-Z

In September, Puma SE used the reputation of SE, the rap tycoon of basketball creative director, to return to basketball after 20 years in opposition.

He revealed that the sales of the first basketball shoes "Clyde Court Disrupt" was "very positive". He also said that "investing in functional basketball and basketball culture is a firm commitment to the North American market function and sports style business."

Excluding the impact of exchange rate, the three quarter Puma SE sales increased by 15.8% to 414 million 400 thousand euros in, while the Asia Pacific region expanded from 17.3% in the two quarter to 22.8%, and sales were 299 million euros.

Since 2018, the largest market has continued to slow down in Europe, with the growth rate falling from 18.6% in the first quarter and 10.5% in the two quarter to 8%, mainly due to the weakening demand for footwear.

Nevertheless, management once again raised its annual performance outlook. Now it is estimated that the fixed exchange rate sales growth rate can reach 14%-16%. The expected increase in the first quarter is 12%-14%, initially expected to be 10%.

The annual operating profit target also increased from 3.1-3.3 billion euros to 3.25-3.35 billion euros, which means that it will achieve a minimum growth of 32% over the same period, while the original target is 3.05-3.25 billion euros.

In the three quarter, Puma Puma SE achieved a total sales of 1 billion 241 million 700 thousand euros, which was 1 billion 200 million euros, 1 billion 200 million higher than the 1 billion 121 million 800 thousand euro a year ago, and a gross margin of 150 basis points to 49.6%.

Thanks to the increase in sales and gross margin, EBIT rose 28.4% to 129 million 900 thousand euros on average, 119 million euros better than market expectations, and EBIT profit margins also increased to 9% from 9% in the same period last year.

Bj o RN Gulden

Analysts said that until now, no signs of slowing consumption in China have yet been seen, but the increasingly tense trade relations between China and the United States have not only increased the workload, but the US's third round of tariffs has also affected some of the categories, especially golf accessories. He warned that upgrading the fourth round and covering products such as footwear and clothing will have a huge impact on the group business, and now the group has begun to cautiously reduce its activities in China.

Puma SE rose 10.1% before the closing session on Thursday, with a high Euro value of 445 euros. It closed up 9.9% in the whole day and reported 444 euros, extending the cumulative increase to 23.3% in 2018.