Puma expects its full-year results "to be at the top end of expectations after reporting a strong third quarter," according to James Shotter of the FINANCIAL TIMES. In the three months to the end of September, the German sportswear group said that its net profits rose to €39.5M ($43M) from €20M in the same period a year earlier. Analysts had expected €33M ($35.9M), according to a Reuters poll. Shares in the group that sponsors Jamaican sprinter Usain Bolt and singer Rihanna were up 3% at €224.05 ($243.98) on Thursday in Frankfurt. Puma CEO Bjorn Gulden said that the brand "had benefited from a mix of tight costs discipline and Bolt and Rihanna helping market its goods." Gulden said that he hoped the results for the year "would be near the top end of the range set out earlier this year." He said, "Sales developed a little better than expected, gross margin came in as expected and this, combined with a strong discipline on the cost side, resulted in a nice improvement in our earnings" (FT, 11/10).
OVERCOMING OBSTACLES: REUTERS' Emma Thomasson reported Gulden has "managed to revive sales growth, but improving profitability has been made more difficult" by the strong U.S. dollar, the currency in which the sportswear industry sources most products in Asia. In response, Gulden "has sought to impose a strict control on costs, while increasing some prices and shifting more production to markets like Brazil, Mexico and Argentina." Gulden said that new products like Ignite Dual running shoes promoted by Bolt and the Fenty fashion line designed by Rihanna "were proving popular." Gulden: "More consumers are buying our products at full price and retailers are therefore more satisfied with us." Puma appointed Rihanna as women's creative director in '14 as it seeks to tap into the "athleisure" trend of sports clothing being worn as a fashion statement, "also partnering with top models like Cara Delevingne and Kylie Jenner" (REUTERS, 11/10).
