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PUMA’s net profit fell by more than 60% in the first quarter, and e-commerce announcements increased by 40%

PUMA’s net profit fell by more than 60% in the first quarter, and e-commerce announcements increased by 40%
On May 7, the German sports brand PUMA released its first quarter earnings report for 2020.Reported average, PUMA’s total budget reached 1.3 billion euros, a year-on-year decrease of 1.3%; operating profit was 71.2 million euros, a year-on-year decrease of 50%; net profit was 36.2 million euros, a year-on-year decrease of 61.6%; the epidemic caused the PUMA offline stores to be temporarily closed. In the first quarter, PUMA e-commerce increased by about 40%.In terms of categories, PUMA footwear category increased by 1 in the first quarter.9%, the initial decline of clothing and accessories were 6.3% and 0.2%.Before the outbreak in early 2020, PUMA’s distribution in the Chinese market, self-operated, and e-commerce channels all achieved double-digit growth.However, starting in late January, PUMA’s offline stores in the Chinese market were basically closed, and only e-commerce business was retained, which lasted for nearly 6 weeks.In addition, due to the impact of the epidemic, PUMA’s offline stores in Japan and South Korea have also been temporarily closed, causing PUMA’s Asia Pacific market to decline by 12% in the first quarter.In late March, although the Chinese market began to recover, the epidemic spread worldwide. By the end of March, PUMA temporarily closed about 80% of its retail stores.The PUMA chief representative said that considering the uncertainty of the epidemic development, the impact of the epidemic on PUMA is still unpredictable, and 2020 will be a difficult year.PUMA has applied for a revolving credit of 900 million euros and has focused on e-commerce, actively maintaining relationships with partners in factories and supply chains.Nevertheless, even with the rapid growth of e-commerce business, it is difficult to make up for the offline losses. In view of the fact that sales of most sports lifestyle products have stalled, PUMA expects that the financial performance in the second quarter may be less than the first quarter.Sauna, Ye Wang Liu Jiaqi picture PUMA Weibo screenshot editor Li Zheng proofreading Chen Diyan