German athleisure brand PUMA SE (DE:PUM) today announced its second-quarter earnings for 2023 that surpassed analysts’ expectations due to improved demand for sneakers and apparel in China. The company foresees increased momentum as it enters the third quarter.
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The shares have responded positively and were trading up by almost 2% today at the time of writing. The last year has been quite volatile for the shares, and they were down by over 12%. This reflected a strong disconnect from its strong financial numbers.
The TipRanks Earnings Calendar tool helps users stay updated on earnings announcements by companies. This tool is now available in nine markets and could act as a useful resource for staying on top of things.
Lower Q2 Earnings, Full-Year on Track
In the latest earnings report for the second quarter and half year of 2023, the company posted an operating profit of €115 million, higher than the average analyst forecast of €110 million. However, this figure was down by 21% as compared to the same quarter a year ago. Similarly, the net income was also down by 34.7% to €55 million. The EPS for the quarter was €0.37 per share, slightly lower than the consensus EPS of €0.38 on TipRanks.
The company’s total sales were up by 5.9% to €2.12 billion. Asia and Europe contributed substantially to increased revenues, demonstrating strong performance. Conversely, the U.S. market had a negative impact on the overall performance of the company. The upswing in demand from China significantly bolstered the company’s operations in Asia, resulting in a remarkable 24.4% surge in sales.
The EMEA region achieved €846 million in revenue, exhibiting a growth rate of 25%. On the flip side, the U.S. region reported a decline of 4.4% in its sales to €861 million.
Moving ahead, the company reaffirmed its outlook for 2023, anticipating high single-digit percentage growth in sales. Additionally, it maintained its expectation of EBIT to fall within the range of € 590 million and € 670 million. The company also mentioned the possibility of revising the financial targets upward later in the year.
Is PUMA a Good Stock to Invest in?
According to TipRanks’ analyst consensus, PUM stock has a Moderate Buy rating based on a total of 15 recommendations, of which 11 are Buys.
The average price prediction is €70.74, which shows a positive change of 22% in the share price.
