German sportswear maker Puma reported stronger-than-expected first-quarter outcomes on Wednesday as excessive demand from each retailers and shoppers greater than offset the influence of the conflict in Ukraine and provide chain bottlenecks.
The corporate mentioned its earnings earlier than curiosity and taxes (EBIT) rose 27 p.c to 196 million euros ($208.62 million) within the first three months of 2022, in comparison with analysts’ common forecast for EBIT of 181.5 million euros.
“(This) confirms our investments into innovation and advertising are paying off,” chief government Bjorn Gulden mentioned in a press release, including that Puma offered extra merchandise in all classes, with essentially the most progress in working, soccer, basketball and golf attire.
“Based mostly on such a robust first quarter, we’d usually increase our outlook for the total 12 months. However given the elevated uncertainty on the earth, now we have determined to stay to our preliminary outlook from the start of this 12 months,” Gulden mentioned.
Amid the COVID-19 outbreak in China and the Ukraine conflict, Puma must deal with market share beneficial properties and mid-term progress over short-term revenue optimization, which can enhance its working expenditures and damage gross margin, the chief government mentioned.
By Zuzanna Szymanska; Edited by Paul Carrel and Miranda Murray
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