Cat and mouse on guidance The key today was going to be 2021 guidance and here the short term caution was even louder than anticipated. However, we were reassured by management''s comments on the healthy wholesale order book, more than 30% higher yoy, and to hear that Jan/Feb sales are also in growth. We cut EPS materially, but it feels more precautionary: without new issues emerging the operating leverage could be substantial. The brand remains hot, and we maintain our Outperform Q4 results: good, could have been even better The results were broadly in line with expectations and management proposed the resumption of the dividend. Most notable was the commentary around the US, where supply shortages limited the growth at the end of the quarter. Guidance: cautious, but ready to spring into action in H2 Currently around 50% of doors are closed in Europe and online is not fully compensating for this. Understandably, management guided annual sales cautiously: ''at least a moderate increase in sales at constant currency- with an upside potential''. On the analyst call the colour on Q1 to date, as well as seeing the monthly comps, made it clear that Q1 sales could grow by double-digits, depending on how Puma annualises the weak March 2020. The maths around the comps would still suggest to us that the company can grow sales by healthy double-digits in 2021. Sticking to our Outperform: brand momentum is very strong An order book 30% higher year on year and a strong pipeline of new products and initiatives maintain our confidence that the brand can drive sales growth and margin expansion in 2021 and beyond. We cut our earnings forecasts for this year but are hopeful the company can over-deliver. The stock trades on high near-term multiples (CY22 P/E c.33x) but this reflects margins which are still likely to be single-digit at that stage, with material upside over the medium term.