Puma Shares Rise as Sales Exceed Estimates

FRANKFURT, Germany — Puma SE, the German athletic-gear maker that sponsors sprinter Usain Bolt and English soccer club Arsenal, reported sales and profit that topped analysts' estimates as consumers bought its Boost running shoes and Evo Power cleats.

Earnings before interest and taxes was 6.8 million euros ($7.5 million) in the second quarter, Puma said Friday in a statement. That beat the 4.3 million-euro estimate of analysts surveyed by Bloomberg. Sales rose 18 percent to 772.7 million euros, exceeding the 743.8 million-euro average analyst estimate.

Bjoern Gulden, chief executive officer for two years, is attempting to revive the faded brand with new products, splashy athletic sponsorships and ads. The turnaround has been slow to take hold. On May 6, Puma sliced its profit outlook, forecasting that Ebit will tumble as much as 37 percent this year. Puma’s costs of buying dollar-denominated shoes and jerseys are rising with the stronger U.S. currency against the euro.

Puma’s operating margin has narrowed by more than 10 percentage points in the past decade and is set to fall to a record low of 2.6 percent this year, Citigroup analyst Thomas Chauvet said. A sale by Kering SA of its 86 percent Puma stake is an “increasingly credible scenario” in the next 12 to 18 months, he said.

Gulden has sought to reposition Puma, based in the Bavarian town of Herzogenaurach, from a maker of sport-lifestyle wear that often discounted its products into a more desirable supplier of sneakers and gear for soccer, running and other sports. He's adopted an edgy advertising approach featuring sprinter Bolt, soccer star Mario Balotelli and the singer Rihanna.

In late June, Puma sold Tretorn, a Swedish maker of rainboots and other footwear, to Authentic Brands Group, the owner of Juicy Couture and Frederick’s of Hollywood.

By Aaron Ricadela; editors: Matthew Boyle, Thomas Mulier, Tom Lavell.