NEW YORK — Puma AG is on the prowl for full-year sales of 3 billion euros, or $4.03 billion at current exchange. And analysts said the firm, which posted a moderate earnings increase in the first quarter, is poised to land firmly on target.
“[The company is] definitely on track to meet it,” said Morningstar Inc. analyst Joscelyn MacKay.
Hitting the target would require an 11 percent sales increase this year, as Puma’s total revenue for fiscal 2010 was 2.7 billion euros, or $4 billion.
Christopher Svezia, an analyst at Susquehanna Financial, said, “It’s a bit aggressive, but given the level of investments they’re making, I’d hope to see some of that show up in revenue growth.”
After first-quarter net income advanced 7 percent to 77.7 million euros, or $109.5 million, the Herzogenaurach, Germany-based company now expects earnings to grow in the mid-single digits for the full fiscal year, it said in a statement.
Puma’s sales growth of 13 percent brought total revenue to 773.4 million euros, or $1.09 billion.
Accessories drove most of the increase, surging 42 percent to 114.4 million euros, or $167.5 million, followed by footwear, which advanced 7 percent, and apparel, which inched up 2 percent.
By region, the Americas posted the strongest sales increase, with 20 percent. Asia Pacific improved by 7 percent, while the Europe, Middle East and Africa segment logged a 4 percent rise.
“We were even able to mitigate the negative impact we saw from the disastrous events in Japan [in March],” Puma CEO Jochen Zeitz said in a statement.
Zeitz added that the firm “performs at levels consistent with reaching the long-term target of 4 billion euros in sales, [or $5.85 billion], by 2015.”