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Puma reports strong sales despite port congestion and Reuters politics

© Reuters.File photo: The logo of the German sporting goods company Puma can be seen at the entrance of a store in Vienna

Berlin (Reuters)-German sportswear company Puma is on Wednesday first, despite consumer backlash over coronavirus blockade, supply chain issues, and comments from Chinese Western brands about Xinjiang Uygur Autonomous Region. It reported a 26% increase in sales in the first quarter.

According to Puma, sales were € 1,549 million ($ 1.87 billion) and net profit jumped to € 109 million, both above average analysts’ expectations.

In March, Western brands including Puma and rivals Nike (NYSE :) and Adidas (OTC :) faced an online attack in China over a statement on cotton procurement in the Xinjiang Uighur Autonomous Region following reports of the use of forced labor by Uighur Muslims.

Puma said Wednesday that Asia-Pacific sales surged 29% in the first quarter, driven by Greater China. However, he noted that “recent political tensions in major markets” have led to increased uncertainty in the industry.

Puma has previously stated that it has no direct or indirect business relationship with any manufacturer in Xinjiang Uygur Autonomous Region.

Western governments and rights groups have accused authorities in the Far West of detaining and torturing Uighurs in camps. Beijing has denied the accusation.

Puma has seen new regulations in places such as India, Canada and Turkey, while about 30% of stores selling products in Europe and Latin America remain closed due to COVID-19. , Pandemic said it will continue to curb its business throughout 2021. ..

Especially in North America, despite facing uncertainties due to container shortages and port congestion, full-year sales growth and a significant increase in profitability compared to last year are expected in the mid-teens.

Nike reported lower-than-expected quarterly sales last month due to shipping issues and in-store pandemic-related slumps, with full-year sales forecast to grow “late teens to mid-term.”

U.S. container freight has slowed significantly in recent months due to the outbreak of COVID-19 and safety restrictions among port workers, but the nearly week-long blockade on the Suez Canal has led to world trade. Fostered continued confusion.

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Puma reports strong sales despite port congestion and Reuters politics

https://www.investing.com/news/stock-market-news/puma-reports-strong-sales-despite-port-congestion-politics-2487599 Puma reports strong sales despite port congestion and Reuters politics

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