Puma shares jump 4% after unscheduled earnings announcement
Athleisure specialist Puma made an unscheduled announcement earlier in the week that sent its share price up by 4%. The company offered an early snapshot of its third quarter earnings, the full report of which will be arriving on October 24. And investors like what they saw. Puma, which is majority owned by French luxury giant Kering, said that sales rose “about 17% to €1.122 billion” from the same quarter a year ago. This is an easy beat against analysts’ expectations of €1.091.
Puma’s share price has appreciated by 38% so far this year
SOURCE: Yahoo Finance
Puma has been experiencing a renaissance this year, as consumers turn towards its fashionable sporting apparel and away from recent mainstays like basketball shoes. The company has capitalized on this trend by enlisting high profile celebrity fashion icons like Rihanna and Selena Gomez to design and endorse their own lines. Given that these people number social media followers in the millions, and no lack of coverage in the entertainment media, collaborations like this might be the most powerful way to speak to Millennials and younger audiences.
America is seeing the emergence of a turf war between unquestionable market leader Nike, which has long been a giant looming over the athletic apparel industry, Puma, and German brand Adidas, which is seeing a similar return to form. But if this week’s figures are anything to go by, Puma is more than holding its own. The company was so positive about them that it raised its outlook for the third time this year. Puma now expects a gross profit margin of 46/5% (previously, it said it expected 46%) and currency adjusted sales growth of 14% to 16% (against an earlier figure of 12% to 14%).
Dominion holds Puma in its Global Trends Luxury Fund.
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