Sales of Puma increased by 16.9 percent (ca) to €2,354.4 mn in the third quarter of fiscal 2022 (+23.9 percent reported), representing the highest quarterly sales in Puma’s history. The Americas region recorded a sales growth of 18.8 percent (ca). Sales in EMEA were up 18.5 percent (ca), driven by growth across almost all key markets in Europe.
The Asia/Pacific region recorded sales growth for the first time this year (+9.8 percent ca). While COVID-19 related lockdown measures still impacted the business in Greater China, other key markets in Asia/Pacific delivered strong growth. Sales in footwear were up 33.2 percent (ca) and apparel grew 9.9 percent (ca), driven by continued strong demand for performance categories like Running & Training, Teamsports and Basketball, as well as for Sportstyle. Sales in accessories were down 10.2 percent (ca) because of a softer leg- and bodywear-business, especially in North America.
The gross profit margin decreased by 60 basis points to 46.8 percent, mainly caused by higher sourcing prices due to raw materials and freight rates as well as an unfavourable channel mix, while price adjustments and currencies had a positive impact.
Operating expenses (OPEX) increased by 25.8 percent to €853.2 mn as a result of higher marketing expenses, a higher number of retail stores in operation as well as higher sales-related distribution costs. Because of ongoing operational inefficiencies due to COVID-19, especially in supply chain and warehousing, the OPEX ratio increased to 36.2 percent (Q3 2021: 35.7 percent).The operating result (EBIT) increased by 12.6 percent to € 257.7 mn (Q3 2021: € 228.9 mn) and the EBIT margin came in at 10.9 percent (Q3 2021: 12.0 percent).
“Despite all the global uncertainties the third quarter was again a very good quarter for us. With sales being up 24 percent in Euro terms at €2,354 mn and EBIT up 13 percent to €258 mn, it was the best quarter in Puma’s history. Improved product availability due to a more stable supply chain, better than expected sell-through and PUMA’s continued global brand momentum over compensated all the negative external factors. During the first nine months, we achieved sales growth of 24 percent in Euro terms (18 percent ca) to €6,269 mn and an EBIT of €600 mn,” Bjorn Gulden, CEO of Puma.
“With almost all our markets up double-digit, we continue to see a strengthening of the Puma brand and our sales globally. We expect continued volatility in the market during the fourth quarter but are confident that we can deliver according to our full-year outlook. We will also continue with our people-first approach and always prioritize the health and safety of our employees and not save on anything. At the moment, this is especially true for our people and their families in Ukraine who have our full sympathy and support. At the same time, we will also continue to invest in our people, brand and infrastructure, as sales growth and higher market shares will be more important than short-term profit optimisation,” added Gulden.