German sportswear giant Puma posted a second-quarter (Q2) earnings report that beat expectations and set a higher forecast for its full year.
It is also seen to be more successful in dealing with problems in China than its compatriot, Adidas.
The report saw Puma's earnings before interest and tax (EBIT) rise 34.4% to $148 million compared to the average analyst forecast of $131 million.
Q2 sales jumped 18.4% in currency adjusted terms to $2,044 driven by growth in all categories including running, training, team sports and basketball products.
On the back of such unexpected performance, Puma boldly put its full-year sales forecast at 10% with potential upside from earlier while maintaining its full-year EBIT guidance.
Talking about the situation in China which is still under the implementation of the Zero-COVID policy, Chief Executive Officer (CEO) Bjorn Gulden stated that the company is not betting on economic growth there in 2022.
He added that the situation there is seen as difficult, but the investment in R&D, innovation and product development over the past few years has begun to bear fruit.
In contrast to compatriot Adidas, which blamed restrictions in China as the reason for the decline in sales, Puma outlined calls for a boycott of Western textile firms over the treatment of China's Xinjiang Uighur minority.
Meanwhile, another Puma competitor, Nike Inc, forecast Q1 earnings below expectations due to discount offerings and struggles with pandemic-related disruptions in China.
