Specialist
Former manager at Puma SE
Agenda
- Puma’s (ETR: PUM) sales outlook in the retail, wholesale and online channels by product category, including opportunities to grow presence in wholesale account, retail sites and womenswear
- Supply chain shortages and the impact on inventory, pricing and gross margins
- Competitive analysis – Puma vs Adidas (ETR: ADS) vs Nike (NYSE: NKE)
- Operating margin expansion opportunities and cost challenges
Questions
1.
Puma’s most recent growth figures were fairly strong for the group and EMEA posted a strong performance. What is your Q4 2021 trading outlook, based on the strong momentum through the year so far?
2.
What do you think is driving Puma’s strong growth, especially in EMEA?
3.
What is Puma’s competitive advantage in the wholesale channel?
4.
Why are Puma’s wholesale volumes outperforming bricks-and-mortar sales, year to date?
5.
You said the wholesale share of shelf is increasing. How permanent could this be over the next 3-5 years?
6.
What is Puma’s share of shelf space and how has it changed over the last 1-2 years?
7.
You mentioned Puma’s shelf space potentially reaching saturation in 2022. What figure do you have in mind?
8.
Why is Puma so strong in India? What is driving this growth?
9.
How do you think demand will differ across footwear, apparel and accessories in EMEA?
10.
What is the customer split between women’s and men’s? You said customer share is the factor we should consider in women’s.
11.
Does Puma have a structural advantage in women’s vs Adidas or Nike?
12.
We’ve spoken about the different dynamics in wholesale and bricks-and-mortar, so owned-and-operated retail. What does the wholesale vs bricks-and-mortar vs online mix shifting in EMEA mean as a percentage of total sales?
13.
You mentioned Puma’s bricks-and-mortar split is no higher than 25%. How do you expect first-party online sales to grow, relative to total sales?
14.
What is Puma’s rough outlet share of total sales? Would that include wholesale?
15.
Is Puma’s overreliance on outlet a risk to brand equity?
16.
What is your headline pricing outlook? Is there room for growth? If so, how much yearly?
17.
Could Puma pass on 100% of the cost increases to wholesale customers?
18.
What inventory or product availability shortages could Puma experience?
19.
We’re hearing from Puma about shifting supply away from Vietnam towards other far east countries. How effective could this far east diversification strategy be?
20.
Is nearshoring closer to Europe an option? I believe Puma said it’s not cost-effective.
21.
There’s a lot of market discussion around the supply chain shortages’ severity. How might demand be impacted if supply isn’t there to service demand in Q4 2021?
22.
What short-term gross margin implications have the supply chain challenges had for Puma?
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