The sporting goods company has recently been doing better than its larger competitor Adidas.
(Photo: imago images/Future Image)
Munich The sporting goods group Puma is currently doing better than its larger competitor Adidas. In the second quarter, Puma increased sales by a good 18 percent currency-adjusted to more than two billion euros for the first time. “This illustrates the strong demand for our products despite all the global challenges and uncertainties,” said CEO Björn Gulden on Wednesday.
As a consequence, Puma raised its sales forecast for the full year. The group now expects growth in the mid-teens percent range. The profit forecast confirmed Gulden. The operating result (EBIT) should increase from 557 million euros to 600 to 700 million euros.
Adidas lowered expectations for 2022 on Tuesday evening. The global number two now only expects sales growth in the mid to high single-digit percentage range, instead of the original eleven to 13 percent.
Adidas also lowered its earnings forecasts. The group is only aiming for around seven percent for the operating margin for the full year, previously Adidas had promised up to eleven percent. Adidas justified the forecast reduction with a “slower than expected recovery of business in China”. In addition, the consumer climate could weaken in the coming months.
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In the second quarter, Adidas increased sales after a decline in the first quarter by at least four percent to 5.6 billion euros. However, the group grew much more slowly than its competitor Puma, which grew by 18 percent.
It’s just not working on the stock market yet
Puma had already started the new year very well. In the first quarter, sales increased by 20 percent to 1.9 billion euros. “Based on such a strong first quarter, we would usually raise our outlook for the year as a whole,” said Gulden at the end of April. But with a view to the many global challenges – from new corona lockdowns in China to rising material prices to the Ukraine war – the Norwegian was still cautious at the time.
Recently, Puma has regularly grown faster than larger rival Adidas. The world number three was able to increase revenues last year by 32 percent to 6.8 billion euros. Adidas increased currency-adjusted by 16 percent to 21.2 billion euros.
Puma and world market leader Nike currently have a “bigger brand heat” than Adidas, said Thomas Jökel, fund manager at Union Investment. However, the two German providers on the stock exchange have both lost about a third of their value in the past six months.
More: Investors are calling for a turnaround at Adidas