Home / WORLD / Despite the supply challenges, Puma’s sales outlook has been raised

Despite the supply challenges, Puma’s sales outlook has been raised

Despite the supply challenges, Puma’s sales outlook has been raised

German sportswear company Puma has boosted its 2021 sales outlook in Vietnam despite highlighting its supply-chain pressure from coronavirus lockdowns, port traffic jams and container shortages.

Factories in Vietnam, a big supplier to the footwear industry, have been closed due to Covid-19 outbreaks and factory owners have said they only expect to fully resume operations from the second half of 2022.

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 “very difficult market situation” in China.

“We foresee the high demand for our products to continue, but we also see supply constraints continue to be a problem for the rest of the year,” Gulden said in a statement.

Third-quarter sales rose a currency-adjusted 20.4% to €1.9 billion while operating profit jumped to €229m, both well ahead of average analyst 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% in the Americas and 22% in Europe, Middle East and Africa. But they only rose 1.7% in Asia/Pacific due to ongoing tensions in China and Covid-19 lockdowns in markets like Japan. Find more.

|Source: Online/KSU

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