Yahoo Finance Puma, The Fastest-Growing Company In The Footwear Industry, Raises 2017 Guidance
Puma SE NPV (OTC: PMMAF) released preliminary second-quarter results on Monday and has raised its guidance for the second half of 2017.
Puma has been one of the hottest footwear companies in 2017 in a struggling industry.
“Puma is the only brand that is showing significant growth at scale, pretty much every brand is growing negatively,” NPD Group's Matt Powell told Benzinga.
Consolidated sales increased 16.3 percent on a currency-adjusted basis to 968.7 million euros in Q2. Puma’s EBIT grew a whopping 265 percent year-over-year to 43.9 million euros.
Related Link: Look For Adidas And Puma To Continue Its Run In 2017
Due to increased sales and positive outlook, the company raised its second half guidance; Management now expects currency-adjusted sales to grow by 12 to 14 percent, up from previous low double-digit growth rates. Operating results are now expected to come in between 205 and 215 million euros, up from 185 and 205 million euros, previously.
M&A Talks Heating Up?
With Puma’s management expecting net earnings to improve significantly in 2017, talks of a acquisition may heat up to acquire this growing brand. The company is held by its parent company, French fashion house Kering EUR4 (OTC: PPRUF). Current fashion trends bode well for Puma, which has excelled in casual athletic fashion, one of the fastest growing segments in the industry.
The company has executed well on the endorsement side growing its women’s segment, with key endorsers Rihanna, Kylie Jenner and Ariana Grande. Puma also announced a partnership with Jay-Z for his highly anticipated 4:44 Tour.
“We can confirm that Puma is working with Jay-Z on his upcoming tour and other collaborative projects,” a rep for Puma told Billboard. “More details will be shared at the appropriate time.”
Year-to-date, Puma's OTC shares have gained 55 percent.
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