- Q3 sales 1.9 bln euros vs analyst consensus for 1.8 bln
- Q3 EBIT 229 mln euros vs consensus for 202 mln
- 2021 currency-adjusted sales seen up at least 25%
- Sees 2021 EBIT at 450-500 mln euros vs previous 400-500 mln
BERLIN, Oct 27 (Reuters) – German sportswear company Puma (PUMG.DE) increased its 2021 sales outlook on Wednesday even as it highlighted supply-chain pressures from a coronavirus lockdown in Vietnam, port congestion and container shortages.
Factories in Vietnam, a big supplier to the footwear industry, have been closed due to COVID-19 outbreaks and factory owners have said they only expect to fully resume operations from the second half of 2022.
Puma Chief Executive Bjorn Gulden said the company was also having to cope with port congestion and shortages of container ships that are pushing up freight costs, along with a “very difficult market situation” in China.
“We foresee the high demand for our products to continue, but we also see supply constraints continue to be a problem for the rest of the year,” Gulden said in a statement.
Third-quarter sales rose a currency-adjusted 20.4% to 1.9 billion euros ($2.21 billion), while operating profit jumped to 229 million euros, both well ahead of average analyst forecasts.
Puma sales jumped 31% in the Americas and 22% in Europe, Middle East and Africa. But they only rose 1.7% in Asia/Pacific due to ongoing tensions in China and COVID-19 lockdowns in markets like Japan.
Western brands, including Puma, faced online attacks in China in late March over past statements saying they would not source cotton from Xinjiang after reports of human rights abuses against Uyghur Muslims. Beijing denies any such abuses. read more
Puma said it now expects full-year currency-adjusted sales to rise at least 25%, up from a previous outlook for at least 20%, while it now sees operating profit between 450 million and 500 million euros, compared to a previous 400-500 million.
($1 = 0.8593 euros)
Reporting by Emma Thomasson
Editing by Riham Alkousaa and Jane Merriman
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