- 2022 sales seen up currency-adjusted 10%
- 2022 EBIT forecast at 600-700 mln euros
- Raw material prices, freight costs, COVID to weigh on profits
- Q4 sales down 27% in China
Puma said on Wednesday that its sales expected to drop to at least 10% in 2022, but the German sportswear manufacturer cautioned that a consumer boycott in China and cost pressures would hinder profit growth.
According to Refinitiv Eikon data, Puma anticipates operating earnings of 600 million to 700 million euros (679-$792 million) by 2022, up from 557 million in 2021.
As analysts expressed their displeasure about the forecast, the company's stock fell 0.1 percent at 1009 GMT.
Puma reported stronger-than-expected preliminary sales and core earnings in January, including currency-adjusted 14%.
The company said on Wednesday that higher freight costs and raw material prices, as well as COVID-19 restrictions, would impact on profits in 2022.
Factories in Vietnam, a major supplier to the footwear industry, were closed for months last year due to COVID-19.
Puma is gradually increasing its prices to cover higher costs, with the remainder of it expected to arrive in the second half of the year, according to journalists.
Gulden said he expects sales to fall again in China in the first quarter, but that he could not say if the companies will return to growth again in 2022, noting that Chinese celebrities were still keeping the Western brand away, although athletes were returning.
Puma, along with competitors such as Nike and Adidas, has been chastised in China since last March for refusing to produce cotton from Xinjiang due to reports of human rights violations against Uyghur Muslims. Beijing has denied any abuses.
Puma's fourth-quarter sales fell by 27% in China, while increasing in the rest of Asia and Asia.
Nike said in December that it was more confident in easing supply chain issues for the new fiscal year as it exceeded quarterly earnings and profit estimates, despite sales in Greater China falling 20%.
($1 = 0.8836 euros)