PUMA (PUM) Q2 2021 earnings summary

Executive summary

• H1 sales rose 47.3% reported and 53.6% currency-adjusted to €3,137.9 million; growth versus H1 2019 was 30.0% currency-adjusted.

• Strong demand and improved sell-through lifted H1 EBIT to €263.2 million from a €43.6 million loss; net earnings reached €157.8 million.

Financial highlights

• Q2 sales increased 91.2% reported and 95.8% currency-adjusted to €1,589.1 million; sales were 36.3% above Q2 2019 currency-adjusted.

• Q2 EBIT was €108.9 million versus a €114.8 million loss; net earnings were €48.7 million versus a €95.6 million loss, and EPS was €0.33 versus -€0.64.

• H1 EBITDA rose to €409.2 million from €92.9 million; gross profit increased 53.1% to €1,506.0 million.

• H1 gross profit margin improved 180 bps to 48.0%; operating expenses rose 20.7% to €1,251.5 million as the OPEX ratio fell to 39.9%.

Outlook and guidance

• FY2021 currency-adjusted sales growth guidance increased to at least 20%, from mid-teens; EBIT guidance was specified at €400–500 million, and net earnings are still expected to improve significantly.

• FY2021 fixed-asset investments planned at €200–220 million, mainly for distribution and logistics centers, retail stores, and growth-enabling infrastructure.

• Guidance depends on continued manufacturing without further major COVID-related interruptions; Vietnam lockdowns had suspended production at some South Vietnam suppliers.