PUMA (PUM) Q2 2022 earnings summary

Executive summary

• Q2 sales reached a record €2,002.0 million, up 18.4% currency-adjusted and 26.0% reported; H1 sales rose 19.0% currency-adjusted to €3,914.1 million.

• H1 EBIT increased 30.1% to €342.4 million and net earnings rose 30.3% to €205.6 million, as revenue growth and OPEX leverage offset gross-margin pressure.

Financial highlights

• Q2 EBIT grew 34.4% to €146.3 million; EBIT margin rose 40 bps to 7.3%, while net earnings increased 73.2% to €84.3 million.

• H1 EBITDA increased to €500.8 million from €409.2 million; EPS rose 30.3% to €1.37 from €1.06.

• H1 gross profit margin fell 120 bps to 46.8%; OPEX increased 20.2% to €1,504.1 million, but the OPEX ratio improved to 38.4% from 39.9%.

Outlook and guidance

• FY 2022 currency-adjusted sales growth guidance raised from at least 10% with upside potential to mid-teens; EBIT guidance reiterated at €600–700 million, with net earnings expected to improve.

• Planned FY fixed-asset investment is €220–250 million, mainly for distribution and logistics centers, retail expansion and modernization, and infrastructure.

• Higher freight and raw-material costs, COVID-19 and Ukraine-related inefficiencies are expected to pressure margins; sales growth and market-share gains remain priorities over short-term profitability.