The most difficult quarter
PUMA’s Second Quarter Sales and Profitability heavily affected by COVID-19
July 29, 2020PUMA’s Second Quarter Sales and Profitability heavily affected by COVID-19
July 29, 2020We just unveiled our results for the second quarter of 2020. The April-June period was heavily impacted by the COVID-19 pandemic, which caused a shutdown of 85% of the global sports and fashion retail business. For PUMA, the quarter started with a 55% decline in sales in April, May improved, but was still heavily down at -38%. The real improvement came in June which was down “only“ 6%.
Priority number one was the health and safety of our people, number two to ensure financing and liquidity to survive the crisis and finally to run the business short-term as well as possible without destroying the mid-term momentum of our brand. I am proud of how our people have worked through this difficult time. Flexibility, pragmatism, decisiveness and a positive spirit have been the key characteristics of our people.
Sales in the second quarter of 2020 decreased by 30.7%, adjusted for currency effects, to 831.1 million euros, with sales declining in all regions and all product divisions. The operating result (EBIT) fell to -114.8 million euros.
While the current sales trajectory could even suggest full recovery before year end, the risk of a second wave with major lockdowns remains very high, as globally, COVID-19 infections are on the highest level since the outbreak of the pandemic. Because of this, the development over the coming weeks and months remains unpredictable.
The casualization trends and the influence of sports brands are also expected to strengthen further. PUMA is well positioned to continue its growth and will continue to invest in full new product ranges for 2021. For the longer term, we expect the casualization trends and the influence of sports brands to strengthen further. PUMA is well positioned to continue its growth and will continue to invest in full new product ranges for 2021.
