Herzogenaurach, april 3, 2020
PUMA to propose Suspension of Dividend and to hold AGM on May 7, 2020 as a digital meeting
Given the strong negative impact of the current Sars-CoV-2 crisis on our business, the Management Board of PUMA SE has decided to propose to the Annual General Meeting the suspension of the dividend payment for the financial year 2019.
Apart from China, Japan and South Korea, almost all of PUMA’s own stores as well as those of PUMA’s partners have been temporarily closed by the authorities. PUMA’s e-commerce business, while still operational in almost all markets, accounts for less than 10% of the business. This has, of course, led to a major decline in net sales and cash inflow. It is currently impossible to foresee how long this situation will last. In order to get through this crisis, we are working closely with all our partners such as retailers, suppliers, landlords, banks, and authorities.
PUMA is reducing costs and cash outflow wherever possible as well as securing additional financing to ensure that together with our partners we can sustain the value chain in this period. The goal is to get through this crisis together. We now focus on managing the short-term challenges as well as possible, but without hindering the midterm momentum for the company.
Ensuring financing through this crisis is key and we believe suspending dividend payments as well as suspending the Management Board’s salary 100% and reducing that of our senior management by 25% are the right measures given the circumstances.
Due to the spread of Sars-CoV-2 in Germany and the contact bans mandated by authorities, the Management Board and the Supervisory Board of PUMA SE have decided to hold the Annual General Meeting on May 7, 2020 as a digital meeting only. The invitation for the meeting will be published by April 15, 2020 at the latest. According to the COVID-19 Mitigation Act which came into force on March 28, 2020 - in order to avoid large gatherings of people - general meetings may be held without the physical presence of shareholders or their proxies. PUMA’s Annual General Meeting on May 7, 2020 will meet all conditions required by the new law. Moreover, to ensure consistent communication in a fast-changing business environment impacted by Sars-CoV-2, PUMA has decided to move the date of the publication of the results for the first quarter of 2020 by one week from April 30, 2020 also to May 7, 2020.