In Europe, the Dax group has recently grown particularly strongly.
(Photo: imago images/Future Image)
Munich The sporting goods group Puma started the new year with high growth rates – despite all the global crises. From January to March, sales increased by around 20 percent to 1.9 billion euros. “Based on such a strong first quarter, we would usually raise our outlook for the full year,” said CEO Björn Gulden on Wednesday, according to a press release. In view of the corona outbreak in China, the war in Ukraine and the very tense freight situation, however, one must remain cautious and flexible.
The sporting goods industry did very volatile business last year. Overall demand was high. But the corona lockdowns, the problems in the supply chains and the increased material prices made it difficult to do business.
This year the challenges have increased. Puma and its western competitors withdrew from Russia after invading Ukraine. It is true that the share of sales achieved in Russia is manageable for all providers. However, the further global effects can hardly be estimated.
So far, the crises have only had a regional impact on Puma’s figures. Puma even improved the operating result (EBIT) disproportionately by 27 percent to 196 million euros in the first quarter. “We achieved the highest growth rates in the performance categories such as running, soccer, basketball and golf,” said Gulden. However, due to the corona pandemic, Puma had to accept a decline in sales in the Asia/Pacific region.
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Puma had already grown faster than many of its competitors last year. Sales increased by 32 percent to 6.8 billion euros in 2021 – a company record. The operating result improved from 209 to 557 million euros, which is also a new record. Gulden had announced sales growth of at least ten percent for the current year. The operating result is expected to increase to between 600 and 700 million euros.
Despite the further increase in global business risks, confidence continues to prevail in the industry. Competitor Adidas also expects double-digit growth rates in sales and profits. Currency-adjusted revenues should increase by eleven to 13 percent.
The long-term forecasts in the industry are also good. According to a study by Boston Consulting, global trade in sporting goods is expected to grow by seven percent annually to $670 billion by 2025. Experts expect double-digit growth rates in e-commerce.
More: Why Adidas changed its China boss