Puma raised its earnings outlook this week after reporting profit growth that topped analysts’ estimates. Helped by endorsements amongst the likes of pop-star Rihanna, reality television star Kylie Jenner and model Cara Delevingne, and track star Usain Bolt, as well as sales of its woven Ignite running shoes and sneakers with unconventional designs called Fenty, Chief Executive Officer Bjoern Gulden says the German sportswear company is benefitting from its mix of fashion and sports-specific footwear.
“Fashion and sports are merging into a big business,” Gulden said in an interview with Bloomberg. “You can’t do one or the other - you have to do both.”
Also good for Herzogenaurach, Germany-based Puma? Consumers are more willing to pay full price for new products, making retailers keener to order. Sales rose 11 percent excluding currency shifts to 990 million euros. The figures “show the quality of brand’s growth coming from the important footwear category,” Zuzanna Pusz, an analyst at Berenberg, said in a note. “Puma’s new strategy is bearing results.”