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Puma Profit Tops Estimates as Rihanna-Designed Shoes Boost Sales

Puma SE reported fourth-quarter earnings that topped estimates as singer Rihanna helped sharpen the German sportswear brand’s focus on performance wear and women’s gear.
Rihanna for Puma | Source: Puma
By
  • Bloomberg

FRANKFURT, Germany — Puma SE reported fourth-quarter earnings that topped estimates as singer Rihanna helped sharpen the German sportswear brand's focus on performance wear and women's gear.

Earnings before interest and tax were 10.9 million euros ($12.1 million), Puma said in a statement Thursday, up 2.6 percent from a year ago and ahead of the average 5.6 million- euro average analyst estimate. Revenue rose 17 percent, also beating estimates.

Sales were boosted by the first footwear under a partnership with Rihanna, who became Puma’s women’s creative director just over a year ago. That deal, and this summer’s Euro 2016 soccer tournament, could pad revenue in 2016, according to Berenberg analyst Zuzanna Pusz. Puma forecast sales this year will increase at a high single-digit rate, with gross margin expected to be the same as last year’s 45.5 percent.

Puma shares advanced after the earnings were released, trading 1.3 percent higher at 186.6 euros as of 10:03 a.m. in Frankfurt.

Fourth-quarter sales rose to 879 million euros, compared with analysts’ average estimate of 847.9 million euros. For 2015, Puma reported sales of 3.39 billion euros and Ebit of 96.3 million euros.

By Aaron Ricadela; editors: Nate Lanxon, Paul Jarvis.

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