Puma reported sales and profit that "topped analysts’ estimates as consumers bought its Ignite running shoes" and Evo football cleats, according to Aaron Ricadela of BLOOMBERG. Puma said on Friday that earnings before interest and taxes were $7.5M in the second quarter, beating the €4.3M ($4.7M) estimate of analysts surveyed by Bloomberg. Sales rose 18.5% to €773M ($850M), also topping predictions. The shares rose as much as 5.9% in Frankfurt, "the steepest intraday gain in eight months." Puma CEO Bjorn Gulden is "trying to revive the faded sportswear brand with new products, splashy athletic sponsorships and edgy ads, yet the turnaround has been slow going." Puma sliced its profit outlook on May 6, "citing higher dollar-denominated costs of buying shoes and jerseys" (BLOOMBERG, 7/24). REUTERS' Kirsti Knolle reported Puma launched its "biggest ever marketing campaign a year ago" to "gain back territory" lost to adidas and Nike, prominently featuring Olympic sprint champion Usain Bolt, "who has been promoting a new springy-soled running shoe." The sportswear industry "sources most of its products from Asia in U.S. dollar contracts, but Puma makes a bigger portion of profits" than its rivals in markets where currencies have "tumbled against the greenback like Brazil, Argentina and Russia." Sales were driven by "strong growth in the Americas, where Puma makes a third of its revenue, with a currency adjusted gain" of 11.6% (REUTERS, 7/24).
