"Despite all the global uncertainties, the third quarter was again a very good quarter for us. With sales being up 24% in Euro terms at 2 354 million euros and EBIT up 13% to 258 million euros, 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 overcompensated all the negative external factors (…). We expect continued volatility in the market during the fourth quarter but are confident that we can deliver according to our full year outlook", commented Bjørn Gulden, Chief Executive Officer of Puma. 

Third Quarter Results

In the third quarter of the current year, the company's sales increased by 16.9% (by 23.9%, as reported), amounting to 2.35 billion euros, on a comparable basis to the same period of 2021. In this period, Puma's wholesale business was up by 19.9% (ca), totalling 1.86 billion euros, whereas the Direct-to-Consumer (DTC) business grew by 4.2% (ca) to 489.7 million euros.

The Americas region recorded a sales increase of 18.8% in the third quarter of 2022 and sales in the EMEA rose by 18.5% (ca), "driven by strong growth across almost all key markets in Europe", as compared to the same quarter of last year. Sales in the Asia-Pacific region grew for the first time this year due to other key markets other than Greater China, where COVID-19 related lockdown measures continued to impact the business.

In the three months to the 30^th of September, Puma's gross profit margin declined by 60 basis points to 46.8%, year-over-year, thanks to "higher sourcing prices due to raw materials and freight rates as well as an unfavourable channel mix", offset by price adjustments and currencies. Operating Result (EBIT), in turn, increased by 12.6% to 257.7 million euro and EBIT margin stood at 10.9% (3Q 2021: 12.0%).

Net earnings totalled 146.4 million euros in the third quarter of 2022, reflecting an increase of 1.8%, on a comparable basis to a similar quarter of the prior year; accordingly, earnings per diluted share amounted to 0.98 euros.

Year-to-Date

Puma reported an increase in sales of 18.2% (24.4%, as reported) in the first nine months of the year, as compared to the same period of 2021. The Americas region led growth (sales up by 28.1%), followed by the EMEA region (sales up by 21.4%). Sales in the Asia-Pacific region declined by 3.7%, year-over-year, "due to geopolitical tensions and COVID-19 related lockdown measures in Greater China"; other major markets in the region recorded growth.

As of the 30^th of September, net earnings amounted to 352.1 million euros, as compared with 301.7 million euros in the same period of last year, and earnings per share were 2.35 euros (9M 2021: 2.02 euros).

Outlook

"(…) The situation in Ukraine, a global energy crisis, persistent inflation and rising interest rates are leading to uncertain consumer behaviour and volatile demand. COVID-19-related restrictions are still impacting business in Greater China, and higher freight rates and raw material prices continue to put pressure on margins. At the same time, the overall inventory levels have increased at both retailers and brands. The higher inventory levels, combined with uncertainty and volatility in the markets, are leading to increased promotional activity and retailers ordering later and more conservatively”, flagged the company.

Nevertheless, Puma confirmed its full year outlook for currency-adjusted mid-teens sales growth, and an operating result (EBIT) in a range of 600 million euros to 700 million euros, with net earnings expected to improve accordingly.