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Puma eye for positive outlook for the financial year after doubling sales in Q2

PUMA now expects a sales increase of 20% from the previous financial year due to an incredible second quarter.

Sportswear brands continue to bring in good news for stakeholders after a not-so-great 2020 as the world braced for the Covid – 19. After Nike reported a strong recovery in 2021, Puma is said to follow in its footsteps, after reporting a 96% growth in sales from last year. The brand reported € 1.589 billion in sales for Q2 2021 on Friday, up from € 831 million.

Continued brand momentum, successful product launches with high sell-throughs, and strong growth across all regions, especially in North America, led to a strong quarter.

 The outlook for the operating result is anticipated to come in between € 400 million and € 500 million. Puma’s net earnings are still expected to improve significantly in 2021 according to their statement.

The achievement of these estimations is subject to continued manufacturing operations in key sourcing countries such as Vietnam and China and no other major interruptions due to COVID-19. A complete overview of PUMA’s business development for the second quarter of 2021 will be published on July 29, 2021.

The growth in the North American market can be attributed to the marketing team’s efforts in improving athlete partnerships across America. Sprinting icon Usain Bolt signed a 10-year deal reportedly worth more than $23 million in 2003. He most recently signed a lifetime deal in June. NBA Rookie of the Year LaMelo Ball signed a deal reportedly worth $100 million in October. The deal also included access to a private jet.

Brazilian soccer superstar Neymar inked a long-term deal in September after a 15-year, $210 million deal after ending his deal with Nike over sexual assault claims. 

PUMA now expects a sales increase of 20% from the previous financial year due to an incredible second quarter. However, that number is a low estimate by considering the continued risks due to the COVID-19 pandemic, political tensions in key markets, and supply chain restraints due to container deficiencies and port blockages. 

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