German sportswear maker Puma has announced that making a forecast for the full year has been made impossible by the coronavirus-stricken conditions in the world.
Image Courtesy: puma-catchup.com
The second quarter sales and profitability of the company have also been greatly affected due to the pandemic.
Second quarter sales for Puma were down 30.7 per cent to US $ 975.34 million or € 831 million and the EBIDTA mounted to losses of €114.8 million, rising from the €80.3 million for the same period last year.
Both the sales figures and the earnings before interest and tax did worse than analysts had expected – €815 million and €113 million, respectively.
Although the company relied heavily on e-commerce while the world was experiencing lockdowns, the sales from their online portal were not enough to offset the amount of losses.
Chief Executive Bjoern Gulden called this the most difficult quarter he has experienced and said, “The uncertainty surrounding the virus and the fact that the number of infected people globally is still increasing makes it impossible to determine an accurate financial outlook for the full year.”
The company has been making sure that it has enough liquidity to tide over the pandemic and secured a revolving credit facility of €900 million, including 625 million from German state-owned bank KfW, back in May.
The month of June was one of improvement with sales only down 6 per cent and 85 per cent of Puma’s stores were re-opened throughout the world.