German sportswear firm Puma AG reported flat third-quarter net profits Friday, but defied the sluggish economy to raise its full-year sales forecast from single-digit to mid- to high-single-digit growth, buoyed by a 5 percent increase in the order books. The Herzogenaurach-based company said net profits for the third quarter were 89 million euros, or $134 million, no change year-over-year, due to brand investments that increased at a double-digit rate, as in the previous two quarters. Earnings before interest and taxes, meanwhile, rose 1 percent to 125 million euros, or $188.3 million. Dollar figures are converted from euros at average exchange rates. For the nine months ended Sept. 30, net profits dipped 2.7 percent to 224.7 million euros, or $342.1 million. Citing the general environment and uncertainties about consumption, Puma’s chief executive officer Jochen Zeitz declined to give a full-year profit forecast. As PPR, Puma’s majority owner, reported on Oct. 23, sales at the athletic brand gained 6.3 percent in the third quarter to 712.8 million euros, or $1.07 billion, with strong growth in accessories and footwear across most regions. Highlights included Puma’s sponsorship of the world’s fastest runner, Usain Bolt, at the Summer Olympics. Sales in the Americas grew 18.7 percent to 184.7 million euros, or $278.3 million. Though the company didn’t break out U.S. sales, it said business there increased slightly, outperforming the order books reported in June. In the Europe, Middle East and Africa regions, business grew 4.2 percent to 388.1 million euros, or $584.8 million. In Asia, sales jumped 11.9 percent to 139.9 million euros, or $210.8 million. That third-quarter performance helped nine-month sales rise 3.8 percent to 2.15 billion euros, or $3.27 billion. Sales of footwear increased 2.4 percent to 1.16 billion euros, or $1.76 billion, while accessories jumped 28.2 percent to 252.6 million euros, or $384.6 million. Sales of apparel, meanwhile, declined 0.4 percent to 737.9 million, or $1.12 billion. “We are confident that Puma will achieve another year of solid growth in 2008 despite the global financial crisis,” Zeitz told analysts during a conference call Friday, adding it would be the 14th consecutive year of annual sales growth. “Due to the year-to-date performance and our order books, we raise our sales guidance for our full-year outlook from a single-digit to a mid- to high-single-digit currency adjusted sales growth.” The company’s orders, an indication of future business, were up 4.7 percent to 1.16 billion euros, or $1.67 billion, in September, their second-highest level ever. Footwear orders increased 6.8 percent to 703.5 million, or $1.01 billion, while accessories grew 8.4 percent to 66.7 million euros, or $96 million. Apparel orders inched up 1 percent to 393 million euros, or $565.8 million. Going forward, Puma — which underscored its foray into the sailing category this year by competing in the Volvo Ocean Race, a ninemonth round-the-world sailing marathon to finish next July — is continuing to reinforce its fashion lifestyle positioning. Following collections with designers Alexander McQueen and Yasuhiro Mihara, Puma has teamed up with fellow PPR-owned Italian luxury brand Sergio Rossi for a capsule women’s footwear collection that reinterprets the brand’s iconic Clyde sneaker, introduced in 1973. The first designs by Hussein Chalayan, meanwhile, the firm’s creative director and in whose brand Puma acquired a majority stake in February, will be released in 2009. Puma’s stock closed up 2.74 percent on Friday at 131.50 euros, or $171.67, on the Frankfurt Bourse. Separately on Friday, Puma named Andreas Schmocker as general manager of Puma Switzerland. Schmocker replaces Stefan Kropf, who has left the company. Schmocker joins Puma from outdoor company Salewa Sport AG Switzerland, where he was general manager.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim