Football boot manufacturers Adidas and Puma have published their most recent 2007 sales figures with the two German companies experiencing contrasting fortunes.
While Adidas has seen its Group revenues increase, Puma has seen its third quarter performance dragged down by weak sales in the United States.
Adidas Group CEO Herbert Hainer announced that in the first nine months of 2007 the Group revenues increased five percent, driven by sales growth in the Adidas segment, and the inclusion of an additional month in the Reebok segment. In the third quarter of 2007, the football boot brand’s gross margin increased 3.6 percentage points to 48.6% and the net income attributable to shareholders increased 22% to €298 million compared to €244 million in 2006.
By contrast, although football boot brand Puma has seen its net profit rise from €87.1 million for the July to September period 2006 to €89.1 million for the same period this year, turnover fell 0.5 percent, reflecting a 10 percent fall in the United States where sales of Puma’s core product, shoes, were especially weak.
The disappointing figures were an improvement however on the second quarter, when US sales plunged more than 20 percent. The negative trend is unlikely to change in the foreseeable future with orders in the United States being down 24 percent by the end of September, according to the football boot company that has brought us the Puma v.106 and v-Konstrukt series.
Despite heavy investment in new products, Puma, which is 62 percent owned by French luxury goods group PPR, said it expected turnover and operating profit to grow by less than five percent this year. Fortunately its prospects look brighter next year, at least in the football boot sector, due to the sales boost it expects from the Euro 2008 football championships.