In the third quarter of 2020, Puma managed to recover sales and profits, but the tightening of the epidemic situation around the world is forcing the company to be cautious in its forecasts for the coming months, writes Footwearnews.com.
The German sports giant's revenue in the third quarter of 2020 increased by 13% to € 1,58 billion (or $ 1,85 billion at current exchange rates) in FX fluctuations, while operating income increased 17% to € 190 million (or $ 222,78 million). These figures exceeded the forecast of 1,56 billion euros in sales and 174 million euros in profit.
“Retail stores have reopened, sporting events have resumed, consumer confidence has grown, and our sales have been growing every week,” said Puma CEO Björn Gulden in a statement.
However, the company said it could not provide a forecast for the fourth quarter and fiscal year due to a new surge in the incidence, which led to the introduction of new restrictive measures in several countries in Europe and the United States.
Over the past three months, Puma has taken some important steps: in September, it signed a long-term deal with Brazilian soccer star Neymar Jr., who previously partnered with rival Nike. The Ultra football boots and RS Dreamer basketball shoes have also been released in collaboration with 2020 NBA leading player LaMelo Ball. Brand ambassadors athlete Danny Green and Kyle Kuzma won the 2020 NBA Championship.
In addition, the free float of Puma increased after Kering sold approximately 5,9% of the brand. The luxury conglomerate has gradually reduced its stake in Puma to its current 2018% since 9,8.
In preparation for the long-term impact of the pandemic, Puma received an additional € 900 million revolving credit line in May that it has yet to draw.