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Puma CEO Says If You Want Christmas Presents, Buy Them Now

Puma CEO Says If You Want Christmas Presents, Buy Them Now

Puma SE Chief Executive Officer Bjorn Gulden said consumers should buy Christmas presents now if they want to ensure that they’ll get ahold of what they want given the mess global supply chains are in.

Gulden said he gave that advice to his wife recently. “There will be racks in retail that are more empty than you’d like when you go Christmas shopping,” he said on a call with reporters.

Retailers are making plans for the holiday season earlier than normal this year as port blockages and product shortages threaten to complicate Christmas shopping. Earlier this month, Tesco Plc Chief Executive Officer Ken Murphy said Britain’s biggest supermarket has ordered 10% more turkeys this year and is increasing the number of containers of fresh produce being transported by rail from Spain to ensure it doesn’t disappoint customers. 

The shoe and apparel industry in particular has been struggling to meet demand after factory lockdowns in Vietnam that stretched from late July to mid October. Since it normally takes three months for products to go from factory floor to retail shelves, Gulden said, the lack of shoes and apparel made during that time hasn’t hit the market yet, and will only do so this quarter and next.

There are, however, reasons for optimism. All the factories Puma relies on in south Vietnam are now back open, operating about 70% of capacity on the apparel side and 60% for footwear. Gulden expects the plants to be running at full speed within weeks. The company also reported earnings that topped estimates Wednesday and lifted its sales and profit targets.

©2021 Bloomberg L.P.