Puma surpasses €4bn sales mark but expects growth to slow
Puma, the German sportswear firm, expects its growth to slow following a bumper 2017 when sales surpassed €4 billion ($4.9 billion) for the first time, Bjoern Gulden, the company’s chief executive, has said.
Puma’s sales totalled €4.1 billion last year, thanks in part to the growth of the brand’s footwear division, where sales increased by 23.5 per cent
However, total sales dropped by 6 per cent in the final quarter of last year and Gulden expects that trend to continue in 2018.
Operating profit is projected to increase by about 30 per cent in 2018 to a range of between €308 million and €325 million.
Net earnings increased by 118 per cent in 2017 to €135.8 million, compared with €62.4 million in the previous year.
Gulden also expects Puma's soccer sales to grow despite one of its main sponsorship assets, Italy, not qualifying for this year’s Fifa World Cup in Russia.
Puma’s impressive financial results come after major shareholder Kering, the fashion-focused ownership group that owns Gucci, revealed that it plans to spin off the brand to its shareholders.
Yesterday, Puma announced that it would be replacing rival German sportswear firm Adidas as the kit supplier to Italian soccer giants AC Milan.