PUMA (PUM) Q4 2021 earnings summary

Executive summary

• FY 2021 sales and EBIT reached record levels, supported by continued brand momentum, strong demand and operational flexibility.

• Sales grew 29.8% currency adjusted versus 2019, indicating growth beyond the prior-year comparison.

Financial highlights

• FY sales rose 31.7% currency adjusted to €6,805.4 million, up 30.0% reported; Q4 sales rose 14.3% currency adjusted to €1,767.1 million.

• FY EBIT increased to €557.1 million from €209.2 million; net earnings rose to €309.6 million from €78.9 million.

• FY EPS increased to €2.07 from €0.53; Q4 net earnings fell to €7.9 million from €24.7 million and EPS to €0.05 from €0.16.

• FY gross profit margin improved 90 bps to 47.9%; Q4 margin rose 20 bps to 48.2%.

• FY OPEX increased 20.3% to €2,724.6 million; OPEX ratio declined to 40.0% from 43.3% on higher sales and cost control.

Outlook and guidance

• FY 2022 currency-adjusted sales growth expected to be at least 10%; EBIT forecast at €600 million–€700 million, with net earnings expected to improve correspondingly.

• Gross margin and OPEX-ratio trends depend on COVID-19 effects on sales; freight, raw-material inflation and pandemic-related inefficiencies expected to dilute profitability.

• Guidance assumes continued manufacturing in key Asian sourcing countries and no major COVID-19 business interruptions.