Puma Q1 Operating Profit Cut But Business Income Increased By 40%

On Thursday morning, DE:PUMG, a German sports shoe and garment company, said that its performance in the second quarter would be even worse than in the first quarter, because Puma's first half quarter results were slightly higher than analysts' expectations because of the shutdown of about half of its stores in the world.

In the first quarter, Puma's sales fell by 1.3% to 1 billion 300 million euros ($1 billion 400 million) after the exchange rate adjustment, which was higher than analysts' average expected value of 1 billion 260 million euros, and operating profit fell 50% to 71 million 200 thousand euros, lower than analysts' average expected 74 million euros.

Sales fell by 12% in the Asia Pacific region, but sales in Europe, the Middle East and Africa still increased by 3.5%. Sales in the Americas grew by 3.1%, mainly because they began to block in March.

However, Puma said Asia's business is recovering, especially in China and South Korea, where some of Europe's stores are reopened, but the sales network in the Americas is almost completely closed.

In addition, Puma's e-commerce business grew by about 40% in the first quarter and is still growing rapidly. However, the company pointed out that it still can not offset the loss of sales of physical stores.

Puma expects that by the end of the year, all markets will recover and return to growth in 2021. In addition, Puma also said that the public health crisis promoted more people to strengthen physical training and wear more casual clothes.

As of 17:22 Beijing time, Puma (Puma) rose 3.70%.