Puma reported net losses in Q2 2020, quarantine dealt a huge blow to the sportswear industry

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The coronacrisis hit Sports Mark Puma hard in the Q2 2020. The results of the company were very negatively influenced by shop closures in the United States and Europe in an attempt to limit the spread of the virus. Puma reported a loss of almost EUR 96 million in the reporting period. A year earlier, the sports brand made a profit of 49.7 million euros.

Due to a bad start in April and May, the fall in sales was also considerable. Puma saw revenue decline by 31% in the second quarter to EUR 831 million. In June sales improved slightly and fell by only 6%. Although sales in China improved in the second quarter, the recovery in Asia was not as strong as hoped due to weaker sales in Japan and India.

“The second quarter was the hardest quarter I’ve ever seen. I never expected a virus to close 85% of all shops,” says CEO Björn Gulden. “The uncertainty surrounding corona and the fact that infections are still growing worldwide makes it impossible to determine a financial perspective. “However, Golden said that he wanted to invest in developing new products and marketing and that “many decisions will be made locally”.

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Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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