Higher Prices Help Puma Almost Double Profit in Turnaround Push

  • Net income grows 92% in first quarter to 50 million euros
  • Company says price increases, better sourcing helped profit

Puma CEO Says Women’s Line Has Great Momentum

Puma SE’s first-quarter profit almost doubled as the German sports apparel maker raised prices and sold fewer goods at a discount, bolstering its turnaround plan.

Net income jumped 92 percent to 50 million euros ($54.4 million), the company said Tuesday, less than two weeks after raising its full-year earnings forecast. More efficient sourcing also provided a boost.

Puma is in the fourth year of a turnaround, balancing sportswear and street styles with the help of endorsements from celebrities including singer Rihanna and sprinter Usain Bolt. While profitability is still a far cry from the record levels the company achieved more than a decade ago, revenue in the quarter topped 1 billion euros for the first time.

Puma CEO Bjorn Gulden discusses the company’s earnings and growing momentum in their women’s line

Source: Bloomberg

The “strong brand momentum” will help bring “a more normalized level of profitability” to the company, Berenberg analysts Zuzanna Pusz and Mariana Horn said in a note.

Puma shares rose 2.5 percent to 368 euros at 9.50 a.m. in Frankfurt.

The company also said Tuesday it will sponsor French soccer club Olympique de Marseille, having signed a similar deal with Germany’s Borussia Monchengladbach earlier this month.

— With assistance by Heather Burke

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