30
Oct
2009
Puma Surprises With Robust 2Q Sales, Op Pft Beats Views
sportswear maker puma ag rudolf dassler sport (pum.xe) friday surprised analysts with robust second-quarter sales and a better-than expected operating profit.
parent company ppr (pp.fr) attributed the performance to a “good control of operating costs” and lower marketing and communication expenses.
while first-half sales fell 3.8% in comparable terms, analysts focused on the 3.8% rise in overall terms, which they interpreted as a positive trend. overall, sales in the first six months rose to eur1.3 billion from eur1.25 billion, beating analyst expectations of eur1.27 billion.
puma’s second-quarter sales rose 4% to eur600.3 million from eur576.8 million a year earlier, beating an analyst poll by dow jones newswires which forecast a sales drop to eur573 million.
operating income in the first six months of the year fell 6%, to eur177 million from eur189 million. however, the figure doesn’t take into account eur110 million in costs linked the company’s savings program that puma booked in the first quarter. if this figure is deducted from the operating profit, the latter would still be above analyst expectations of eur52 million, which include the restructuring costs.
“puma is holding up well in the recessions and is trading at a substantial discount to its peers, says sal. oppenheim analyst joerg p. frey, who rates the stock at buy.
he says the company’s friday conference call comments imply second-quarter earnings before interest and taxes of eur63 million, beating its above consensus estimate of eur50.2 million. “we expect likewise positive cash flow numbers with puma’s full set of figures on august 7,” the analyst said.
in may, puma said it will accelerate its ongoing savings program to weather the economic downturn. the third-largest sports goods maker in the world plans to cut up to eur150 million in costs in 2010.
at 1515 gmt, shares in the company traded down 0.1% at eur177.82 in a flat german market.
the company is part of french luxury and retail group ppr, which also posted better-than-expected first-half earnings.
puma will release detailed figures aug. 7.