- Puma sales register record-high quarterly sales as shoe demand beats COVID impact.
- The German firm recorded USD 2 billion in revenue, beating analyst expectations by 14%.
Puma attributed its success to brand momentum and strong worldwide demand, which helped the company overcome the negative effects of COVID-19 restrictions and ongoing supply chain bottlenecks.
German multinational company Puma recently reported robust quarterly sales and core profit, as strong global demand helped overcome the effects of the COVID-19 pandemic and supply chain challenges
Previously, Puma stated that supply difficulties and manufacturing delays would result in a product shortage well into 2022. Last year, COVID-19 outbreaks forced factories in Vietnam, a major footwear supplier, to close for months.
Puma reported fourth-quarter revenues of 1.77 billion euros (USD 2.01 billion), a 14% increase over analysts' expectations of 1.63 billion euros (USD 1.8 billion). Puma's stock was up 1.8%, making it the second-best performer on Germany's blue-chip index.
The company said that quarterly earnings before interest and taxes (EBIT) increased from 63 million euros (approx. USD 71 million) to 65 million euros (around USD 73 million) in the same period of 2020, exceeding the average expert projection of 47 million euros (USD 53 million).
It is worth noting that Puma outperformed rivals Adidas and Nike in 2021, with Adidas scheduled to release its numbers on March 9 and Nike reporting a 1% increase in global revenue in its fiscal second-quarter figures in late December.
The industry is dealing with supply-chain issues that have prompted suppliers to rely on costly air freight instead of container ships. In China, where many consumers have shunned Western goods in favor of Chinese ones, the corporations are also dealing with political difficulties.
The sportswear firm will reveal final full-year results on February 23, 2022, sources confirmed.