Puma Group's Two Quarter Sales Exceeded Market Expectations

Benefiting from the 2016 European Cup of France and Women's wear Creative director Rihanna Rihanna and reality show star Kylie Jenner product The fourth largest sporting goods group in the world is Puma SE (PUMG.DE). Puma In the two quarter, the group's sales exceeded the expected market growth, and the turnaround was successful.

Puma SE (PUMG.DE) rose 1.9% to 226.2 euros in 52 week highs on Wednesday, and hit a two-and-a-half high.

In the two quarter of June 30th, the group achieved a net profit of 1 million 600 thousand euros, compared with a net loss of 3 million 300 thousand euros in the same period last year. EPS also increased to 0.11 euros from -0.22 euros in the same period last year. Operating profit surged 75.1% to 11 million 900 thousand euros, better than the 10 million 600 thousand euros expected. Net sales totaled 826 million 500 thousand euros, better than the 820 million euros forecast for the market, up 7% from 772 million 700 thousand euros a year earlier and 12.8% after excluding the exchange rate effect.

After completing the three year revitalization plan led by Bj RN Gulden, the chief executive in 2013, Puma SE Puma group found a balance between sports function and sports fashion, and all markets and product categories grew during the period.

After the exchange rate was removed, the growth rate of EMEA and Asia increased by 23.5% and 10.3% respectively, and sales increased to 321 million 300 thousand euros and 189 million 600 thousand euros respectively. The five national teams sponsored by the European Cup (Italy, Switzerland, Austria, Czech and Slovakia) greatly promoted sales, while Asia mainly relied on China's positive performance. The Americas also increased by 5% to 315 million 600 thousand euros.

By category, excluding the effect of exchange rate, the largest category of footwear grew the slowest and sales increased by only 7.4% to 360 million 200 thousand euros, but it had increased by 8 quarters. Clothing and accessories increased by 19.5% and 14.1% to 299 million 100 thousand euros and 167 million 100 thousand euros respectively.

As the dollar continued to strengthen during the period, the gross profit margin in the two quarter dropped from 45.6% in the same period last year to 45.6%, a decrease of 110 basis points.

For the upcoming Rio Olympics, the focus of the industry is on the Puma Puma brand spokesperson, who is likely to retire after the Olympics, Jamaica flying Usain Bolt Usai Bolt. Puma SE, CEO of Puma group Bj RN RN, said at the post earnings analyst conference that Boulter was "a member of Puma's family," even though his retirement group also wanted to establish closer cooperation with him, such as allowing him to take part in more product development and play a business role.

Although Michael Jordan Michael Jordan and David Beckham Beckham are still retired, they have brought considerable sales to the Nike Inc. (NYSE:NKE) Nike group and Adidas AG (ADSGn.DE) Adidas group (the annual sales of Jordan Jordan Jordan brand) and the global advertising effect, but analysts believe Boulter's role in the track and field field will be lacking.

On the other hand, the achievements of Rihanna Rihanna and Kylie Jenner for the group prove that Puma SE, Puma group focuses on the success of the female market strategy, and the group has greatly increased their brand exposure and deepened their brand image by their influence in social media.

Matt Powell, an analyst at NPD Group, a market research firm, said that in 5 and June, sales of Puma sports shoes in the US retailer respectively increased by 40% and 17% respectively. Strong sales helps the group get more and better sales space in the top retailers.

Puma SE and Puma group still maintain the same expectation throughout the year. It is estimated that the annual sales will have a high digit growth rate after the impact of the exchange rate cancellation. The gross profit margin will remain unchanged at 45.5% in fiscal year 2015, and the adjusted operating profit will be between 1.15-1.25 billion euros.

At the time of the deadline, the Puma SE (PUMG.DE) market ended 221.35 euros, down 0.29%, and the stock rose 37.4% in the past 52 weeks.