German sportswear company Puma increased its 2021 sales outlook on Wednesday even as it highlighted supply-chain pressures from a coronavirus lockdown in Vietnam, port congestion, and container shortages. Emer McCarthy reports.
German sportswear giant Puma increased its 2021 sales outlook on Wednesday (Oct. 27) despite lingering supply-chain pressures.
Factories in Vietnam, a major supplier to the footwear industry, have been closed due to the global health crisis, and factory owners have said they only expect to fully resume operations from the second half of next year.
Puma Chief Executive Bjorn Gulden said the company was also having to cope with port congestion and shortages of container ships that are pushing up freight costs, along with a, quote, “very difficult market situation” in China.
Third-quarter sales rose a currency-adjusted 20.4 percent to $2.21 billion while operating profit also jumped well ahead of forecasts.
Rival Nike cut its fiscal 2022 sales expectations last month and said it expected delays during the holiday shopping season, blaming a supply chain crunch.
Puma sales jumped 31 percent in the Americas and 22 percent in Europe, Middle East, and Africa.
However, they only rose 1.7 percent in Asia/Pacific due to ongoing tensions in China and lockdowns in markets including Japan.