German sportswear maker Puma on Wednesday said its second-quarter sales grew by 11%, slightly ahead of market expectations, boosted by China sales and resilient Europe. Its sales were 2.12 billion euros ($2.34 billion) in the quarter, up from 2 billion a year earlier and above the 2.05 billion expected by analysts polled by Refinitiv Eikon.
Puma confirmed its full-year outlook for currency adjusted revenue growth in a high single-digit percentage rate, and an operating profit of between 590 million and 670 million euros. The company added it would be able to adjust the guidance if its business continued to develop favourably in the third quarter.
The sportswear sector, hit by rising material and freight costs as well as inventory markdowns and higher promotion expenses, is facing weakening demand in North America and slower than expected recovery in China, a market it was betting on to boost sales. “The pattern of China’s economic recovery after COVID-19 remains uncertain,” Puma said. The group added it expected the macroeconomic environment and volatile retail demand to remain challenging, especially in North America and Europe.