High demand leaves Puma’s Q1 results ahead of expectations

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The logo of German sporting goods company Puma is seen at the entrance of one of its stores in Vienna, Austria March 18, 2016. REUTERS/Leonhard Foeger

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FRANKFURT (Reuters) Supply chain more than balanced has bottlenecks.

The company announced that its earnings before interest and taxes (EBIT) rose 27% to 196 million euros ($208.62 million) for the first three months of 2022, compared to the median EBIT forecast for the Analysts of 181.5 million euros.

“(This) confirms that our investments in innovation and marketing are paying off,” Chief Executive Bjorn Gulden said in a statement, adding that Puma has sold more products across all categories, with the greatest growth in running, soccer, basketball and golf clothing.

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“Based on such a strong first quarter, we would normally raise our full-year outlook. But given the increasing uncertainty in the world, we have decided to stick to our original outlook from earlier this year,” Gulden said.

Amid the COVID-19 outbreak in China and the Ukraine war, Puma needs to focus on market share gains and mid-term growth rather than short-term profit optimization, which will increase its operating expenses and hurt gross margin, the CEO said.

($1 = 0.9395 euros)

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Reporting by Zuzanna Szymanska Editing by Paul Carrel and Miranda Murray

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