Puma posts record sales in race back from pandemic

The sports apparel brand posted record sales and earnings, exceeding market estimates as consumer demand overcame pandemic disruption.

Thu, 20 Jan, 2022 - 12:18

Tim Loh

Puma posted record sales and earnings that topped estimates as demand for the German company’s sneakers and sports apparel overcame pandemic disruptions.

Puma said sales reached a record €6.8bn in 2021, up 32% on a constant-currency basis.

Fourth-quarter operating income of €65m topped the average analyst estimate.

Puma cited brand momentum and strong global demand for its products, which overcame the negative impacts of Covid-19 restrictions and ongoing supply chain constraints.

The shares rose by over 4% and are above year-ago levels to value it at €14.5bn.

Puma shares have outperformed those of Nike and rival Adidas in the past year.

Headwinds

The industry is grappling with supply-chain challenges that have forced suppliers, in part, to rely on expensive air freight rather than container ships.

The companies are also contending with political issues in China, where many consumers have boycotted Western brands in favour of Chinese companies.

The company is based in Herzogenaurach in Germany and will report full financial results on February 23.

Adidas shares were also higher in the session but are still below year-ago levels, to value the firm at €29.2bn.

Both Puma and Adidas are dwarfed by US company Nike, which is valued at $229.4bn (€ 202.3bn)