Footwear Retailer Forecasts Lower Growth in 2019

  • Puma shares drop 2.66% due to sales slowdown warning for 2019
  • Q4 2018 sales increase by 20.1% to €1,226m (£1,079m)
  • Currency-adjusted sales growth forecast at around 10% for 2019
  • Gross profit margin to show slight improvement compared to 48.4% in 2018
  • Operating expenses to increase at a slightly lower rate than sales
  • Strong growth in Asia/Pacific and Americas regions
  • Apparel and footwear sales up 28.6% and 17.4% respectively in Q4
  • Full-year 2018 sales increase by 17.6% to €4,648m (£4,092m)
  • Gross profit margin improved by 110 basis points to 48.4%
  • CEO Bjørn Gulden: ‘We are moving our brand and company in a good direction’
  • Expected currency-adjusted sales growth of around 10% and operating result between €395m and €415m for 2019

Puma shares fell by 2.66% after the company warned investors about a potential slowdown in sales and profit growth for 2019, despite posting a 20.1% increase in Q4 2018 sales, which reached €1,226m (£1,079m). The retailer expects currency-adjusted sales to grow by around 10% for the full year and gross profit margin to show a slight improvement compared to last year’s 48.4%. Operating expenses are expected to increase at a slightly lower rate than sales. Strong growth in Q4 was driven by new footwear franchises RS-X and Cali, with particularly strong performance in the Asia/Pacific region and the Americas. Apparel and footwear sales increased by 28.6% and 17.4%, respectively. Puma’s full-year 2018 results showed a 17.6% increase in sales, adjusted to €4,648m (£4,092m), with double-digit growth across all regions and product segments. Gross profit margin improved by 110 basis points to 48.4%. CEO Bjørn Gulden expressed satisfaction with the company’s progress and expects continued growth in 2019, forecasting currency-adjusted sales of around 10% and an operating result between €395m and €415m.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Puma’s financial performance in Q4 2018 and full-year 2018, including sales figures, growth rates, and the CEO’s comments on the company’s progress. It also includes relevant details about specific product lines and regions. However, it does not include any personal opinions or sensationalism.
Noise Level: 2
Noise Justification: The article provides relevant information about Puma’s financial performance and the CEO’s outlook for the future. It stays on topic and supports its claims with specific numbers and percentages.
Financial Relevance: Yes
Financial Markets Impacted: Puma’s shares dropped 2.66% in early trading due to the forecast of slower sales and profit growth for 2019.
Financial Rating Justification: The article discusses Puma’s financial performance, including its Q4 sales increase, forecasted growth for 2019, and the impact on its shares, making it relevant to financial topics and impacting the company’s stock market value.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk