German sportswear brand Puma has swung to a loss in the second quarter of the year after its sales took a heavy hit from the impact of Covid-19.
The German sportswear brand reported a quarterly net loss of 114.8 million euros compared to a profit of 49.7 million euros in the second quarter of 2019.
Sales during the period decreased by 30.7 percent to 831 million euros while earnings before interest and taxes dropped to a loss of 114.8 million euros compared to 80.3 million euros a year earlier.
In May, the brand secured an additional 900 million euro revolving credit facility to help it prepare for a potential “longer-lasting impact” from the Covid-19 pandemic.
Puma scraps full-year outlook, cites Covid-19 uncertainty
CEO Bjorn Gulden described the second quarter as “the most difficult” he has ever faced. “The quarter started with a 55 percent decline in sales in April, May improved, but was still heavily down with -38 percent. The real improvement came in June which was down ‘only’ 6 percent. Flexibility with our wholesale partners, promotional activities in our own retail stores and a larger focus on e-commerce have been the short-term strategy.”
He continued: “Full investment in product development for 2021, continued investment in marketing, digital sell-in meetings with our retail partners and a high degree of local decision-making is the current strategy for the mid-term.”
Gulden also said Puma would not be offering a full-year outlook due to the continued uncertainty surrounding Covid-19.
Photo credit: Puma newsroom