In the year’s first quarter, the brand Puma took a massive blow in the wake of the COVID 19 pandemic. According to C.E.O. of Puma Bjørn Gulden, the second quarter was “the most difficult quarter I have ever experienced in this industry,” though now there is light at the end of the tunnel for the German fashion brand. It looks that the 3rd quarter of the year is showing a considerable bounce back.
Over the past 3 months Puma has experienced a 13% growth in sales led by American, European, Middle Eastern and African recoveries. They still have, however experienced slow store traffic, though the conversion rates are still rising. E-commerce has also increase by 60.9% and 12.3% currency adjusted. The brand has also been able to increase their profit margins shown to be at 146 million EUR (172.5 million USD) via few, though effective marketing ventures started in the first & second quarters.
The Puma C.E.O. had this to say: “The third quarter developed much better than I expected. Retail stores reopened, sports events resumed, consumer confidence improved and our sales increased week by week. I feel this strong performance confirms the strength of both PUMA as a brand and the sporting goods industry in general,” he continued with “We will continue to maneuver through this pandemic in the short-term without hindering PUMA ́s mid-term momentum. Investments in new partnerships with Neymar Jr. and LaMelo Ball underline our belief in the strong future of our brand.”
In spite of Puma’s growth the pandemic has still left its considerable hindrances on the company in spite of its recent Q3 growth. All regions of their global operations have still experienced a decline in sales by 5.4% in footwear, 8.0% in apparel currency conversion adjusted with a 2.2% increase in Accessories sales.
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