Puma, the renowned German sportswear company, has outperformed expectations in the second quarter and has raised its revenue outlook for the full year. In comparison to its rival Adidas, Puma has effectively navigated the challenges faced in the Chinese market.

Puma announced a remarkable 34.4% surge in earnings before interest and taxes (EBIT), reaching 146 million euros ($148 million), surpassing analysts’ average forecast of 128.94 million euros. With this impressive financial performance, Puma has revised its sales forecast for the full year, now expecting a mid-teens percentage increase in currency-adjusted terms. This is a significant upward adjustment from the previous forecast of at least 10% growth, with potential for even further expansion. The company has left its EBIT guidance for the full year unchanged.

On the contrary, Adidas recently lowered its earnings target for 2022 due to a slower-than-anticipated recovery in China from pandemic-related restrictions. Puma’s CEO, Bjorn Gulden, acknowledged the challenging situation in the Chinese market, expressing that the company does not anticipate growth in China for this year. However, Gulden remains confident in the positive impact of increased investments in research and development, innovation, and product development over the past few years.

Puma has witnessed a commendable 18.4% increase in second-quarter sales in currency-adjusted terms, amounting to 2.002 billion euros. The company experienced robust growth across all its performance categories, including running, training, team sports, golf, and basketball.

Adidas attributes its sales decline in China to COVID-19 restrictions, while Gulden points to the calls for boycotts against Western textile companies as the primary reason for Puma’s challenges in the Chinese market. These boycotts have emerged from social media campaigns in response to Western criticism of China’s treatment of the Uighur minority in the Xinjiang region.

Nike, another competitor, also faced similar challenges in China, foreseeing lower-than-expected revenue in the first quarter due to increased discounting and disruptions caused by the ongoing pandemic. Despite uncertainties in the global market, Gulden maintains an optimistic outlook on the sportswear sector as a whole and the future prospects of the Puma brand. The company’s strong performance and effective management of challenges in China position it well for further growth.

Useful Links:
1. Puma Official Website
2. Forbes Article: Puma Q2 Revenue Beats Expectations, Raises Full-Year Outlook