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Puma Raises Guidance For Third Time In 2017, Sales Up 17%

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Puma Raises Guidance For Third Time In 2017, Sales Up 17%
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Puma NE SPV (OTC: PMMAF) has emerged as one of the hottest sportswear companies of 2017, after announcing in preliminary results that sales were up 17 percent in the third quarter.

The German sportswear brand is capitalizing on fashion trends that are aptly complementing what the company has been known for - its casual athletic style.

"We are in a non-performance market; when performance was in fashion, Puma really struggled. Now that we are in a market where casual is in fashion, Puma is winning,” Matt Powell of NPD Group told Benzinga in August.

Puma raised sales guidance for the full year 2017 for the third time this year. The company now expects 14 to 16 percent sales growth for the full year, up from 12 to 14 percent on its last revision. Puma also upped its EPS and margin guidance.

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In the Q3 2017, sales came in at 1.12 billion, up from 990 million in the same quarter last year.

While Puma isn't growing at as fast as adidas AG (ADR) (OTC: ADDYY) blistering pace in the U.S., the two German sportswear brands have lead the industry in growth in 2017.

Puma is committed to steady consistent growth, which may be the reason for for the steady guidance hikes in consecutive quarters this year.

“What we have [been] seeing is not a fly-by-night success, we are confident if we do what we are supposed to do, then I think the brand and the story we are telling continue to resonate with consumers. You will not hear over aggressive targets, we will continue to under commit and over deliver,” Puma CFO Michael Lämmerman told Benzinga earlier in the year.

Puma is expected to officially announce its third-quarter results on Oct. 24.

Posted-In: Matt Powell Michael LämmermanNews Guidance Retail Sales Best of Benzinga

 

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