Puma Has Released Its Best Quarterly Results Ever Since Its Growth Rate Exceeds That Of Sports Shoes.

Thanks to the rapid growth of the Sino US market and apparel product line, Puma's sales and profits in the first quarter of 2019 were the best in history.

By the end of March 31st, the Puma reported a first quarter sales of 1 billion 310 million euros, an increase of 15.3% over the same period last year, and net profit rose 40.1% to 9440 million euros.

From the perspective of regional distribution, all regions have achieved sustained growth.

The Asia Pacific region contributed 30.3% of the total sales revenue for the quarter, up to 32.5%.

In the earnings report, China and the United States became the fastest growing market with double-digit growth.

The performance of the Chinese market is related to the external environment policy. Puma CEO Bjorn Gulden said that due to the Sino US trade war, it shifted part of the production line to other Asia Pacific region.

Puma shifted part of its footwear production to Vietnam and Indonesia, and garment production was pferred to Bangladesh and Kampuchea.

This method has released the capacity and inventory of domestic plants and accelerated the speed of product supply.

By the end of 2018, the domestic market had produced about 1/3 of the products.

Bjorn Gulden noted that their inventories had increased by 19%, preventing possible delays in delivery in the next few quarters.

In terms of product category, sales of footwear products account for 48.4% of total sales. Thick bottom shoes remain dominant after several consecutive quarters of good results.

The brand believes that the heat of racing shoes may be quietly returning. Since January 1st 2019, Puma has officially become the only technical partner of Porsche racing team to designate the fire protection racing suit, footwear and suitcase.

In addition, its BMW, Ferrari and Mercedes series have attracted interest from retailers and consumers.

Sportswear contributes 35% of sales, up to 28.6%, exceeding footwear and accessories.

This is inseparable from the continuing fashion of healthy fashion lifestyle, "Bjorn Gulden said at a conference call." we sell more clothes than ever before.

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The growth rate of male and female products has now become more balanced. In recent years, Puma has been recovering from women's clothing.

Bjorn Gulden also mentioned that before the first half of 2018, women's clothes performed well. When Rihanna became creative director, he found many fashion circles to take the goods for the brand.

Puma did not raise its annual forecast for the first quarter of this year. It expects annual sales to slow down and grow at around 10%.

Operating profits ranged from 395 million euros to 4.15 billion euros, lower than analysts' average expected 430 million euros.