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Euro 2016 boots Puma back into the black

FRANKFURT — German sporting goods company Puma reported a return to profit in the second quarter as its high visibility during the Euro 2016 football tournament lent it a sales tailwind.

Switzerland's Xherdan Shaqiri celebrates after scoring against Poland at Euro 2016. Photo: Reuters

Switzerland's Xherdan Shaqiri celebrates after scoring against Poland at Euro 2016. Photo: Reuters

FRANKFURT — German sporting goods company Puma reported a return to profit in the second quarter as its high visibility during the Euro 2016 football tournament lent it a sales tailwind.

Sales swelled to €827 million (S$1.24 billion) in the second quarter, an increase of 7 per cent — leaving it with a profit of €1.6 million compared with a loss of €3.3 million in the first quarter.

“Our teams and players in Euro 2016 in France gave us a lot of good visibility,” chief executive Bjorn Gulden said in a statement.

In the Europe, Middle East and Africa region, Puma saw double-digit sales growth in the second quarter at 23.5 per cent.

Puma sponsored five Euro 2016 teams and count Antoine Griezmann, the French striker and highest-scoring player of the tournament, among their best-known faces.

But not all the publicity during the month-long football spectacular was positive for Puma.

A Switzerland-France match early in the tournament saw several Swiss players forced to change their shirts — some of them more than once — as they tore when grabbed or tugged.

“I hope Puma doesn’t make condoms,” winger Xherdan Shaqiri joked after the game.

While the firm suffered mockery TV commentators and social media users, the high-profile foul-up appears to have had little negative impact.

With Puma-sponsored athletes including Jamaica’s Usain Bolt set to star at the Rio Olympics, the company hopes to book a 10-per-cent increase in sales over the whole of 2016.

Puma has also looked to US superstars like singer Rihanna and model Kylie Jenner to boost its image among women.

An underdog compared with its historic German rival Adidas and US behemoth Nike, the Bavarian company is also battling fresh competition from new arrivals on the sportswear scene like Under Armour. AFP

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