Shares of Puma SE (PMMAF.PK) were gaining around 8 percent in the morning trading after the German sportswear firm reported higher earnings and sales in the fourth quarter. The company also projects growth in fiscal 2020.
For the fourth quarter, net earnings increased 55 percent to 17.8 million euros from 11.5 million euros last year. Earnings per share were up to 0.12 euro from 0.08 euro a year ago.
Operating result or EBIT went up 46.8 percent from last year to 55 million euros. Gross profit margin improved to 47.3 percent.
Sales increased 20.6 percent to 1.48 billion euros 79 million with double-digit growth in all regions and product divisions. Sales grew 18.3 percent on a currency adjusted basis.
Sportstyle, Running and Training as well as Motorsport were the categories with the highest growth rates.
Further, the company will propose to the Annual General Meeting on May 7 a dividend of 0.50 euro per share for the financial year 2019, higher than last year's 0.35 euro.
Looking ahead for fiscal 2020, Puma said it is confident that the positive development will continue in 2020.
For the full year 2020, the company expects currency adjusted sales growth of around 10 percent. Gross profit margin to show a slight improvement compared to last year's 48.8 percent.
EBIT would be in a range between 500 million euros and 520 million euros, up from prior year's 440.2 million euros. The company also projects significant improvement of net earnings in 2020.
COVID-19 has negatively impacted the company's business since the beginning of February. In China, more than half of both owned and operated and partner stores are temporarily closed due to restrictions of the local authorities. Business is further impacted in other markets, especially in Asia, due to decline of Chinese tourism business.
Puma expects this to have a negative impact on total sales and EBIT for the first quarter 2020.
In Germany, Puma shares were trading at 78.00 euros, up 8.41 percent.