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boston, masachusetts - October 16, 2018

PUMA launches #THIRDSALUTE

A social media campaign to raise money and awareness for charities promoting universal equality

Today, global sports company PUMA is supporting #THIRDSALUTE, a new social media movement through which it will generate funds for charities promoting universal equality and human rights.

#THIRDSALUTE will be kicked off by Olympic Champion Tommie Smith and is directly inspired by his famous silent gesture at the 1968 Olympic Games, exactly 50 years ago. After he received his gold medal, Smith bowed his head and raised his fist in a silent gesture, which drew attention to human rights abuses and discrimination. Upon leaving the stadium, he faced boos from the crowd, but he stood by his statement and bravely raised his fist a second time. #THIRDSALUTE will bring together celebrities from the worlds of sports and entertainment to post a picture of themselves online, raising their fists just like Tommie Smith did.

On 16 October, 10am EST, Tommie Smith has posted his first image on Instagram, challenging people whom he respects to join him in the salute and to challenge their friends. For each picture or video posted with the hashtag #THIRDSALUTE, PUMA will donate 1 USD, up to 100,000 USD, to the American Civil Liberties Union (ACLU), an organization which has defended the rights enshrined in the US Constitution for almost 100 years. PUMA hopes that through the multiplying effect of #THIRDSALUTE a much greater amount will be raised, while firmly putting universal equality and human rights in the spotlight of public debate. For donating to the ACLU, please go to aclu.org/pumareform.

Several PUMA athletes and ambassadors, such as US Basketball star Skylar Diggins-Smith, and pro footballers Romelu Lukaku, Mario Balotelli and Sergio Aguero joined in and supported the #THIRDSALUTE campaign by raising their fists on Social Media.

#THIRDSALUTE is part of PUMA’s recently launched #REFORM campaign, which creates a platform for celebrities to campaign for the causes they care most about, such as universal equality, criminal justice reform and gender equality.

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Herzogenaurach, germany - october 25, 2018

Strong Sales and EBIT growth continues in the third Quarter

PUMA slightly adapts full-year guidance for 2018

2018 THIRD-QUARTER FACTS

Sales increase by 14% currency-adjusted to € 1,242 million (+11% reported) with double-digit growth in the Americas and Asia/Pacific regions
Gross profit margin improves to 49.6%
Operating expenses (OPEX) increase by 11% due to higher sales related variable costs and higher retail investments
Operating result (EBIT) improves by 28% to € 130 million (last year: € 101 million) and EBIT-margin rises to 10.5% (last year: 9.0%)
Successful US pre-launch of Basketball in late September
PUMA signs supermodel Adriana Lima as women's training ambassador
PUMA adds international star-players to its roster, including Barcelona and Uruguay striker Luis Suárez, Axel Witsel (Belgian national team and Borussia Dortmund) and Dejan Lovren (Croatian national team and FC Liverpool)

2018 NINE-MONTH FACTS

Sales increase by 17% currency adjusted to € 3,422 million (+11% reported) with double-digit growth in all regions and product segments
Gross profit margin up by 150 basis points to 48.8%
Operating expenses (OPEX) increase 10% related to intensified marketing activities, higher sales related variable costs and higher retail investments
Operating result (EBIT) improves by 40% from € 215 million to € 300 million and EBIT-margin increases from 6.9% to 8.8%
Net earnings rise from € 134 million last year to € 176 million and earnings per share increase from € 8.94 last year to € 11.77 respectively
Strong new style platforms Thunder and RS-0 established in the “chunky/ ugly shoe” category

Bjørn Gulden, Chief Executive Officer of PUMA SE:
"The third quarter ended a little stronger than we had expected with sales growing organically by 14% to €1,242 Million and EBIT increasing by 28% to €130 Million. This growth was achieved by a double-digit increase in both Americas and Asia/Pacific and high-single digit growth in EMEA. This improvement was further strengthened by a very positive development in Apparel, which grew 27% in the quarter.
Although we saw very negative currency impacts in Turkey and Argentina, overall we experienced less headwind from currencies in sales than in previous quarters.
We still see large shifts in product trends and consumer demand, but feel we have reacted fast enough to continue our growth.
The prelaunch of Basketball for North America at the end of the quarter created a lot of 'noise' and although it is very early days, the sell-through of our first shoe model has been very positive. This investment in Performance Basketball and the “Culture” around Basketball is a strong commitment to both the performance and the sportstyle business in the North American market.
Given the slightly stronger than expected third quarter and despite the uncertain business environment, with volatile currencies and an uncertain global trade environment, we now see our full-year organic sales growth between 14% and 16% and our full-year EBIT between €325 Million and € 335 million, which is a growth of at least 32% compared with last year."

Third Quarter 2018

PUMA's sales growth continued in the third quarter of 2018. Sales increased by 13.9% currency-adjusted to € 1,241.7 million (+10.7% reported). The Americas and Asia/Pacific regions contributed with double-digit increases, while growth in the EMEA region was at a high single-digit rate. The Apparel product segment was the main growth driver in the quarter, supported by new product launches in the Sportstyle, Teamsport and Motorsport categories. Footwear and Accessories grew at a high single-digit rate.

The gross profit margin improved by 150 basis points to 49.6% in the third quarter (last year: 48.1%). The increase is due to more sales of new products with a higher margin and further sourcing improvements as well as positive effects from the product mix related to Apparel.

Operating expenses (OPEX) increased by 10.6% to € 489.7 million in the third quarter. The increase of operating expenses is mainly due to higher sales related variable costs based on increased sales volumes and higher retail investments related to the increase of our retail store count.

The operating result (EBIT) rose by 28.4% from € 101.2 million last year to € 129.9 million due to a strong sales growth combined with an improved gross profit margin. This corresponds to an improvement of the EBIT-margin from 9.0% last year to 10.5% in the third quarter this year.

The financial result in the third quarter (€ -9.3 million; last year: € -3.4 million) was significantly impacted by currency losses mainly in Argentina and Turkey due to the weakness of those currencies versus the Euro and the US-Dollar. Taxes on income came in at a normalized rate of 27.4% (last year: 28.9%). Due to the improved results of the PUMA companies in which external companies hold minority interests, the net earnings to be distributed to these minority shareholders increased to € -10.1 million (previous year: € -7.4 million) in the third quarter (Net earnings attributable to non-controlling interests).

Net earnings increased from € 62.1 million to € 77.5 million and earnings per share were up from € 4.16 in the third quarter last year to € 5.18 correspondingly.

Sales for the nine-month period were up by 16.7% currency adjusted to € 3,422.0 million (+10.5% reported). All regions and product segments supported sales growth with a currency-adjusted, double-digit increase.

Including eCommerce, PUMA's own and operated retail sales increased by 22.5% currency adjusted to € 771.2 million. This represented a share of 22.5% of total sales for the first nine months of 2018 (21.7% in the previous year). The reasons for the rise are a like-for-like sales growth in our own retail stores, the extension of our retail store network and a continued strong growth of our eCommerce business.

The gross profit margin improved by 150 basis points from 47.3% to 48.8% in the nine-month period. The increase came mainly from more sales of new products with a higher margin and further sourcing improvements. In addition, positive currency effects materialized in the second quarter.

Operating expenses (OPEX) increased by 9.8% and amounted to € 1,383.4 million. The increase was mainly caused by higher sales related variable costs based on increased sales volumes, intensified marketing activities and investments in our own retail store network.

Info Graphic about PUMA's 3rd Quarter Results

The operating result (EBIT) improved by 39.6% from € 214.8 million last year to € 299.8 million in the first nine months of 2018 due to a strong sales growth and a higher gross profit margin. This corresponds to an EBIT-margin of 8.8% compared to 6.9% in the nine-month period last year.

The financial result in the nine-month period (€ -22.7 million; last year: € -5.9 million) was strongly impacted by currency losses mainly in Argentina and Turkey. Taxes on income came in at a normalized rate of 27.6% (last year: 28.3%). Due to the improved results of the PUMA companies in which external companies hold minority interests, the net earnings to be distributed to these minority shareholders increased to € -24.5 million in the first nine months (previous year: € -16.2 million) (Net earnings attributable to non-controlling interests).

Net earnings grew by 31.7% and came in at € 176.0 million (last year: € 133.6 million). This translates into earnings per share of € 11.77 compared to € 8.94 in the first nine months of 2017.

Balance Sheet and Working Capital

Currency translation effects and our continued focus on working capital management led to a slight decrease of working capital of -0.1% to € 762.2 million. Without these currency effects, working capital would have increased by approximately 6%, which is lower than the growth in our business. Inventories were up by 11.6% to € 888.4 million and trade receivables rose by 3.7% to € 702.7 million. On the liabilities side, trade payables and other current liabilities increased by 15.5% to a total of € 1,012.6 million.

The one-off dividend payment this year and the refinancing of the PUMA group after the reduction of Kering’s shareholding in PUMA have led to major movements in current and non-current liabilities in the balance sheet.

Outlook 2018

The third quarter of 2018 saw a continued strong increase of sales and profitability, which was slightly above our expectations. As a consequence and based on the outlook for the remainder of the year, we slightly adapt our guidance for the full year 2018. PUMA now expects that currency-adjusted sales will increase between 14% and 16% (previous guidance: currency-adjusted increase between 12% and 14%). The gross profit margin is still anticipated to improve by approximately 100 basis points, while we now expect that operating expenses (OPEX) will increase at a low double-digit rate related to higher sales related variable costs (previous guidance: increase at a high single-digit rate). The operating result (EBIT) is now expected to come in between € 325 million and € 335 million (previous guidance: between € 310 million and € 330 million). In line with the previous guidance, Management still expects that net earnings will improve significantly in 2018.

Financial Calendar FY 2018:

February 12, 2018 Financial Results FY 2017

April 12, 2018 Annual General Meeting

April 24, 2018 Quarterly Statement Q1 2018

July 26, 2018 Interim Report Q2 2018

October 25, 2018 Quarterly Statement Q3 2018

The financial releases and other financial information are available on the Internet at „about.puma.com“.

Notes to the editors:

The financial reports are posted on www.about.puma.com
PUMA SE stock symbol:
Reuters: PUMG.DE, Bloomberg: PUM GY,
Börse Frankfurt: ISIN: DE0006969603– WKN: 696960

Notes relating to forward-looking statements:
This document contains forward-looking statements about the Company’s future financial status and strategic initiatives. The forward-looking statements are based on the current expectations and assumptions of the management team. These are subject to a certain level of risk and uncertainty including, but not limited to those described above or in other disclosures, in particular in the chapter Risk and Opportunity Management in the Group Management Report. In the event that the expectations and the assumptions do not materialize or unforeseen risks arise, the Company's actual results can differ significantly from expectations. Therefore, we cannot assume responsibility for the correctness of these statements.

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herzogenaurach, germany - october 29, 2018

puma appoints havas media as new global media agency of record

Global Sports Brand concludes extensive media review process. Relationship to start January 2019

Sports brand PUMA today announced the selection of Havas Media as the global agency partner for media buying and planning starting January 2019. This decision comes at the conclusion of an extensive global media review that was part of the company’s overarching strategy to transform its consumer marketing approach and deepen its legacy as one of the world’s leading sportswear brands.

"This is an exciting time for PUMA as we continue to evolve our consumer marketing approach and how we reach our consumers. We were impressed with Havas Media’s strong strategic skills and forward thinking,” said Adam Petrick, Global Director of Brand and Marketing for PUMA. “They clearly demonstrated their understanding of our business, passion for our brand and ability to deliver unique media opportunities.”

“We’re fascinated with meaningful brands, and PUMA truly is one. Our teams felt close alignment on the role paid media should play for a global sports brand – data and performance marketing are increasingly important but it’s creative, strategic use of media that matters to consumers, and that can help the brand succeed,” said Peter Mears, Global CEO of Havas Media. “I’m extremely proud of our teams around the world who’ve shown PUMA the real power of our strategic skills in Havas Media and can’t wait to see the impact we will have.”

PUMA has been supported in the review process by Media Strategy Consultancy, ID Comms to ensure a fair and transparent process and to find the best fitting agency for the brand.

Cover Picture Credit: Conné/ PUMA

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katowice, poland - december 10, 2018

puma takes leading role in industry's pledge to fight climate change

Sports company PUMA plays a leading role in thefashion industry’s comprehensive plan to reduce greenhouse gas emissions and avoid the worsteffects of climate change.

In preparation for the fashion industry’s charter presented at the UN Climate Change Conference in Katowice today, PUMA played an active role in developing the Charter by leading working groups and encouraging industry peers and partner vendors to join the initiative.

The latest reports by the Intergovernmental Panel on Climate Change (IPCC) have highlighted the need for urgent action, as global warming is happening at a faster pace than previously expected. This is why the fashion industry agreed a sector-wide plan of action, which goes well beyond the commitments made by any other industry, targeting net-zero emissions by 2050 and the reduction of greenhouse gas emissions by 30 percent by 2030.

“We are aware that more than 90% of PUMA’s Carbon Footprint is being generated in shared supply chains. If we want to reduce our supply chains’ carbon emissions, we need to work together with our industry peers. The Fashion Industry Charter for Climate Action provides a joint industry effort to support the goals of the Paris agreement. We appreciate that UN Climate has set up a global platform to call upon our industry peers to join the initiative,” said PUMA Chief Executive Officer Bjørn Gulden.

Battling climate change is an essential part of PUMA’s 10FOR20 sustainability strategy, which has already led to several concrete steps. As part of its commitments, PUMA will move to 90% renewable electricity for all of our owned and operated facilities by 2020, either by directly purchasing renewable electricity, or by purchasing renewable energy certificates.

To address the need to also reduce carbon emissions within the supply chain, PUMA will expand its current energy efficiency program, which it established together with the IFC in Vietnam and Bangladesh, to suppliers in other countries. PUMA’s commitment to reduce greenhouse gas emissions is supplemented by a sharp increase from 50% to 90% in the company’s targets for sourcing cotton and polyester from sustainable or
certified sources.

To more accurately assess the impact of such measures, PUMA has rolled out the Higg Index, a standardized tool to measure sustainability performance developed by the Sustainable Apparel Coalition, to all of its core suppliers globally.

Cover Picture Credits: sdecoret/ Fotolia

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herzogenaurach, germany - december 14, 2018

vincent kompany drops leather shoes in favour of puma future

PUMA Football and citizens captain Vincent Kompany have signed a long-term partnership, which will see the Belgian defender hang up his leather shoes and step into the PUMA Future for his next game.

Having 87 caps for Belgium, Kompany has become a role model and unifying figure in his linguistically-divided home country, which came in third during the international tournament in Russia last summer.

Kompany, who helped his club win three league titles with his impressive defending statistics, winning over 1000 duels and making some 1500 clearances in the league alone, is well known for preferring all-leather boots.

For his partnership with PUMA, however, he will sport the PUMA Future, which combines state-of-the-art NETFIT technology with a form-fitting textile base material and knitted ankle sock for infinite lacing options.

“What is crazy is that I was a leather boot only guy till I tried Future. As soon as I laced up in them, I knew it would be an exciting boot to play in. I’m really looking forward to wearing them on the pitch and seeing how they evolve over the next few years,” said Vincent Kompany.

“I have always been an aggressive player, it is a big part of my game, so when a brand like PUMA approached me to work with them, I was incredibly happy, because for me PUMA is a brand that as well as having such a great heritage in football, creates brave and forward-thinking products,” he added.

Vincent Kompany will wear the PUMA Future ‘Stun Pack’ from the 14 of December.

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westford, massachusetts, usa - january 18, 2019

PUMA Establishes New North American Headquarters

Move to larger, unified location at Assembly Row in Somerville, Mass. will provide for growth and best-in-class employee experience

As part of its growth, retention and recruitment strategy, sports company PUMA North America, Inc. today announced plans to establish a new North American headquarters in Somerville, Mass. in 2021. The new headquarters will bring together two PUMA offices, currently based in Boston and Westford.

“We’re excited to bring together our talented North American employees in Somerville, a diverse, vibrant city that reflects our values and culture, and will allow us to retain and recruit the best talent across our front and back-end operations,” said Bob Philion, President and CEO of PUMA North America. “This new headquarters will allow us to better collaborate, foster diversity of thought, creativity and innovation, and have fun while doing it.”

The new headquarters, located at 455 Grand Union Blvd., in Somerville, provides the company with five floors of office space totaling 150,000 square feet. PUMA intends to have approximately 550 positions at the location once the move is complete, representing a more than 20 percent growth of its workforce. There will also be a 19,000-square-foot roof deck, complete with a recreational area and basketball court. The facility provides employees access to a state-of-the-art fitness center, an on-location kids room, ample bike storage and a 2,300-square-foot balcony. The new space is steps away from the MBTA Orange Line Assembly Square stop and provides employees easy access to Assembly Row’s abundant dining, shopping and health and wellness benefits. PUMA has operated a retail location at Assembly Row since 2014.

“Our brand mantra, ‘Forever Faster,’ spans everything we do—from making to marketing and every discipline in between,” said Adam Petrick, Global Director of Brand and Marketing at PUMA. “We need to be faster than ever in the way we react and adapt. Somerville is a city buzzing with creative, diverse energy that will help us live out our ‘Forever Faster’ mentality.”

A long-term lease for the space—a soon-to-be-built 300,000-square-foot building—has been negotiated with developer and landlord Federal Realty Investment Trust. PUMA North America was represented by Michael Joyce at Cushman & Wakefield. Federal Realty was represented by Joe Flaherty at JLL. Assembly Row is easily accessible via Interstate 93 and the MBTA, providing ease of access for the company’s urban and suburban employees.

“We are excited and proud to welcome one of the world’s most recognizable brands to Somerville and look forward to introducing PUMA to our talented and diverse workforce,” said Somerville Mayor Joseph A. Curtatone. “An energetic, creative and forward-looking company like PUMA will fit right in with the innovation culture that is thriving here and continuing to grow.”

To learn more about PUMA North America careers, visit our website.

Download the Media Kit below to get the press release and picture.

The picture shows an exterior rendering of PUMA’s new North American headquarters at Assembly Row in Somerville, Mass. The company will relocate there in 2021

Picture Rendering Credit: PUMA/ Federal Realty Investment Trust

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herzogenaurach, germany - january 22, 2019

PUMA signs multi-year partnership with Egypt Football Association

Sports company PUMA has signed a new multi-year partnership with the Egyptian Football Association, which will see the brand once again team up with Africa’s most successful team.

The deal allows PUMA to continue its proud legacy with teams on the African continent and cement its reputation as a leading supplier to football teams in the region.

“Egypt has an amazing track record and we are very excited to once again supply them with our products”, said Johan Adamsson, Director of Sports Marketing & Sports Licensing at PUMA. “We hope that PUMA and the Pharaohs can continue where they left off, by taking the title in the next Africa Cup of Nations in 2019.”

The partnership between PUMA and Egypt will build on a proud legacy: When the Pharaohs last wore PUMA, they won three consecutive continental titles between 2006 and 2010, an unprecedented feat in the tournament’s history. Overall, Egypt has won seven continental titles, making it the most successful team in African football.

Starting 2019, PUMA will provide all representative national teams, including men’s, women’s and youth teams, with official kits.

“It is great to be back with the big cat in 2019. We share many happy and successful memories together and hope we will hit the ground running in what will be a very important year for Egyptian football,” said Hany Abo Rida, President of the Egyptian Football Association.

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Herzogenaurach, Germany - January 29, 2019

PUMA appoints Anne-Laure Descours as Chief Sourcing Officer and Member of the Management Board

The Supervisory Board of PUMA SE has decided to create a dedicated Board position for Sourcing and has appointed Anne-Laure Descours (53) as Chief Sourcing Officer and Member of the Management Board of PUMA SE, effective 1 February 2019.

Anne-Laure Descours joined PUMA in 2012 and has been overseeing the product development and sourcing activities of all global Apparel and Accessories for the PUMA Group since then. The French national has almost 30 years of experience in the sourcing industry. Prior to PUMA, she worked for international sourcing organisations, such as Li & Fung and Otto International, all based in Hong Kong. As Chief Sourcing Officer, she will also be responsible for sustainability within the PUMA Group. She will continue to be primarily based in Hong Kong.

PUMA’s Chief Operating Officer Lars Radoor Sørensen has - together with the Supervisory Board – decided to step down as board member of PUMA SE, effective 31 January 2019, to pursue other interests. Lars joined PUMA in 2013 and was appointed Managing Director in 2014. As Chief Operating Officer, he was in charge of Sourcing, IT, and Logistics. IT and Logistics will now be reporting to PUMA’s Chief Financial Officer Michael Lämmermann. The Supervisory Board would like to thank Lars for his efforts and contribution to the company’s success.

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hong kong - january 31, 2019

PUMA® INTRODUCES SELF-LACING TRAINING SHOE FIT INTELLIGENCE

Sports Company to select tech-savvy people to beta test most advanced technology platform for performance fit

Sports company PUMA has introduced its new state-of-the-art technology platform Fit Intelligence (Fi) that is designed to automate and finetune performance fit for PUMA footwear.

The first Fi footwear style to be launched is a training shoe that is made for workouts and light running. It employs a micromotor to power a uniquely configured cable system that “laces” the shoe, either through simply swiping on the Fi module up or down. It comes with a smart sensing capability that learns the shape of the foot of each user and adapts the fit of the shoe to the individual. Athletes can also monitor, adjust and finetune fit through a smartphone app. To make things even more athlete-friendly, users can make on-the-fly adjustments with their Apple watch. The technology was built to train smart and is designed for modern mobility. It can handle the urban landscape and the gym making it right for the daily routine of a connected generation. “We have created a product that speaks to the future of sport which is life in motion. It’s fast and changing all the time,” said Charles Johnson, PUMA’s Global Director of Innovation.

Fit Intelligence can be deployed to a range of different sport and lifestyle products. It follows PUMA’s vision for performance products that are Adaptive Dynamic and respond to athletes and their environment. Through Fit Intelligence, PUMA has made fit intelligent and adaptive to each user.

PUMA has a 70-year history of being a leader in sports and innovation. In 1968, the brand crafted the first laceless sports shoe with Velcro™ straps, in 1991 the first cable closure with the PUMA Disc and in 2016 the first ever wirelessly connected adaptive fit shoe called AutoDisc.
The AutoDisc was the predecessor to Fit Intelligence and since then, the company has been working tirelessly on improving functionality, user interface and durability.

The result is now a technology that is smaller, lighter and more commercial, with a breathable upper for more comfortable trainings. It also comes with an industrial grade fiber support system strategically placed for optimal hold and a forefoot lockdown band.

The reveal event took place in Hong Kong, the global hub that connects beta technology with mass production. It is among the most diverse and hyper connected urban settings on earth, fitting to the active mobile lifestyle, for which Fit Intelligence was designed. Attendees saw a video testimonial of Fi put to the test by global technology investment icon Bay McLaughlin. Technology professionals and fans got a real-world view on how Fi delivers to unmet needs of connected entrepreneurs.

To view a replay of the event, click here
To view the tech video, click here

“As a global investor in wearable technologies, I know how hard it is to get a product like Fi right and after my first week with the shoes, it’s clear that PUMA is taking this platform very seriously and I’m impressed”, said Bay McLaughlin.

To be able to fully adapt to our consumers’ needs, PUMA – for the first time ever - will allow tech-savvy people to participate in beta testing of Fi to help the Brand think of ways of making it even smarter and more powerful. “Fi is a platform that can be used for many different things. We want to learn what those things are from people who have experienced it,” said Charles Johnson. The testers will be able to give feedback on the usability, design, engineering, and wearability of the shoe. Through this, PUMA is able to work hand in hand with its consumers to create the best smart fitting product in the market.

Anyone can sign up for the Fi Beta Test program through PUMATRAC, PUMAs training app which is available on the App Store and on Google Play. People will get the opportunity to register for the program, start a workout, go for a run or connect with friends. PUMA will announce on PUMATrac and its website when and how to sign up.

The Fi training shoe will be available for consumers in 2020.

Follow @PUMA and @PUMAperformance or visit https://about.puma.com/en/innovation to learn more about PUMA’s innovative products.

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herzogenaurach - february 14, 2019

PUMA DELIVERS STRONG GROWTH IN SALES AND PROFITABILITY IN 2018

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2018 Fourth Quarter Facts

Sales increase by 20.1% currency adjusted to € 1,226 million (+17.9% reported) with strong growth in all regions and product segments
Gross profit margin remains stable at a high level of 47.1%
Operating expenses (OPEX) increase by 17.1% due to higher sales related variable costs as well as higher marketing and retail investments
Operating result (EBIT) improves from € 30 million last year to € 38 million
Strong sell-through of newly launched footwear franchises RS-X and Cali
PUMA sponsored team Denmark wins Handball World Cup

2018 Full-Year Facts

Full-year sales increase by 17.6% currency adjusted to € 4,648 million (+12.4% reported) with double-digit growth in all regions and product segments
Gross profit margin improves by 110 basis points to 48.4%, supported by higher margins in all product segments
Increase in operating expenses of 11.8% provides slight operating leverage
Operating result (EBIT) improves strongly by 37.9% from € 245 million to € 337 million
Net earnings and earnings per share increase by 38.0% from € 135.8 million to € 187.4 million and from € 9.09 to € 12.54 respectively
Free Cashflow improves from € 128 million to € 173 million
A dividend of € 3.50 per share for 2018 to be proposed at the Annual General Meeting
PUMA share returns to M-DAX in June 2018
Strong new styles Thunder, RS-0 and RS-X established in the “chunky shoe” category
PUMA re-enters basketball category after 20 years
PUMA signs supermodel Adriana Lima as women’s training ambassador

Bjørn Gulden, Chief Executive Officer of PUMA SE:

“We are very happy with how our business developed in 2018. Sales rose organically by 17.6% to €4,648 million and the operating result (Ebit) improved by 37.9% % to €337 million, which shows our strong momentum.
The double-digit growth in all regions is a proof that the we have strenghtened the PUMA brand globally and the double-digit growth in all product divisions shows that we have enhanced our product portfolio.
We still have a lot to improve, but we feel we are moving our brand and company in a good direction. We see that our progress will also continue in 2019 and expect our currency adjusted sales to grow around 10% and our operating result to increase to a range between €395 million and €415 million.”

Fourth Quarter 2018

Sales

PUMA's sales growth continued in the fourth quarter of 2018. Sales increased by 20.1% currency adjusted to € 1,226.4 million (+17.9% reported), compared to € 1,040.2 million in the previous year. Sales growth was particularly strong in the Asia/Pacific region followed by the Americas, both increasing at double-digit rates. Both Apparel and Footwear showed strong growth in the fourth quarter of 2018, improving 28.6% and 17.4% respectively. For Footwear, it was the 18th consecutive quarter of sales growth.

Gross Profit Margin and Operating Expenses

The gross profit margin in the fourth quarter remained stable at a high level of 47.1%, despite negative currency impacts in the quarter.

Operating expenses (OPEX) rose by 17.1% to € 544.9 million in the fourth quarter, caused by higher sales-related, variable costs and a step-up in retail investments, including e-commerce. Football sponsorships, marketing initiatives for new footwear franchises and the launch of the basketball category led to higher marketing costs.

Operating Result and Net Earnings

The operating result (EBIT) improved by 26.1% from € 29.8 million to € 37.6 million in the fourth quarter 2018. The improvement in profitability was due to the strong sales growth combined with an OPEX increase at a slightly lower rate than sales.

Net earnings in the fourth quarter 2018 improved significantly from € 2.2 million last year to € 15.7 million and earnings per share increased correspondingly from € 0.14 last year to € 1.05.

Full Year 2018

Sales

In the financial year 2018, PUMA’s sales increased by 17.6% currency adjusted to € 4,648.3 million (+12.4% reported). The significant difference between reported and currency-adjusted sales growth was due to the weakness of several major currencies against the Euro.

In the EMEA region, sales rose by 11.4% currency adjusted to € 1,800.3 million (+9.4% reported). The main growth drivers in the region were France, Spain, the United Kingdom as well as Russia and Turkey, which all posted double-digit sales growth.

Sales in the Americas region went up by 16.9% currency adjusted to € 1,612.5 million (+7.9% reported), with both North and Latin America contributing double-digit growth rates. The weakness of the Argentinian Peso against the Euro, however, led to the significant negative currency impact in the region.

Growth was particularly strong in the Asia/Pacific (APAC) region, where currency-adjusted sales rose by 28.8% (reported +24.2%), mainly driven by high growth in China and Korea, while sales in Japan increased at a more moderate mid to high single-digit rate.

Footwear continued to be a strong sales driver throughout the year. Sales were up 16.6% currency adjusted to € 2,184.7 million (+10.6% reported), exceeding the € 2 billion sales mark for the first time. Running and Training as well as Sportstyle were the categories with the strongest growth rates.

In the Apparel segment, sales rose by 22.2% currency adjusted to € 1,687.5 million (+17.1% reported). Logo-driven apparel within our Sportstyle category and new product launches in the Teamsport and Motorsport categories contributed to this increase.

Sales in Accessories grew by 11.0% currency adjusted to € 776.1 million (+7.8% reported). This increase was mainly driven by higher sales of legwear and bodywear products.

Including e-commerce, PUMA's retail sales increased by 24.0% currency-adjusted to € 1.127,5 million. This represents a share of 24.3% of total sales in 2018 (2017: 23.2%). Like-for-like sales growth in our retail stores, the extension of our retail store network as well as the extensive growth of our e-commerce business contributed to this rise.

Gross Profit Margin and Operating Expenses

The gross profit margin improved by 110 basis points from 47.3% to 48.4% in 2018. This increase was mainly driven by further improvements in sourcing and higher sales of new products with a higher margin. In addition, a higher share of own retail sales and the regional sales mix with stronger growth in Asia had a slight positive effect on the gross profit margin development as well. There were no full-year currency effects on the gross profit margin compared with the previous year, as positive and negative effects during the year cancelled each other out on a full-year basis.
The gross profit margin in the Footwear segment improved by 30 basis points to 45.8%. In Apparel, margins rose from 49.0% to 50.9% and Accessories margins increased from 48.5% to 50.3% in 2018.

Operating expenses (OPEX) rose by 11.8% and amounted to € 1,928.4 million in 2018. Intensified marketing activities, the refurbishment and extension of our own retail store network, including our e-commerce business as well as further investments into our IT-infrastructure have led to this increase. The OPEX ratio in percentage of total sales decreased from 41.7% in 2017 to 41.5% in 2018. This reflects operating leverage and contributes to the improvement of profitability in 2018.

Operating Result and Net Earnings

The operating result (EBIT) improved significantly by 37.9% from € 244.6 million to € 337.4 million in 2018, which was slightly above the upper end of the revised EBIT guidance of a range between € 325 million and € 335 million. This development reflects the improvement of PUMA’s profitability and was achieved through strong sales growth combined with a higher gross profit margin as well as operating leverage. As a result, the EBIT margin went up from 5.9% in 2017 to 7.3% in 2018.

The financial result decreased from € -13.4 million in 2017 to € -24.0 million and was mainly impacted by higher expenses related to currency conversion differences.

The tax rate for the full year 2018 amounted to a slightly lower rate of 26.7% compared to 27.4% last year, while the total tax expense increased to € 83.6 million in 2018 (2017: € 63.3 million).

Net earnings increased by 38.0% from € 135.8 million last year to € 187.4 million in 2018. This translates into improved earnings per share of € 12.54 compared to € 9.09 last year.

Working Capital

Despite a significant increase in sales and an increased number of own retail stores, working capital rose only slightly by 2.0% from € 493.9 million to € 503.9 million in 2018. Inventories grew by 17.5% to € 915.1 million mainly related to the planned sales growth from the 2019 spring/summer collection. Trade receivables rose by 9.9% from € 503.7 to € 553.7 million. On the liabilities side, trade payables and other current liabilities increased by 21.0% to a total of € 1,152.6 million (last year: total of 952.2 million).

cashflow

The free cash flow improved from € 128.5 million in 2017 to € 172.9 million in 2018. This development was a result of considerably higher earnings before taxes (EBT) and the only moderate increase in working capital. As of December 31, 2018, PUMA’s cash position amounted to € 463.7 million compared to € 415.0 million at the balance sheet date last year.

proposal of dividend of € 3.50 per share

Based on PUMA’s positive business development in 2018 with an improvement of profitability and cash flow, the Management Board and the Supervisory Board of PUMA SE will propose to the Annual General Meeting on April18, 2019, a dividend of € 3.50 per share for the financial year 2018. This represents a payout ratio of 27.9% as a percentage of net earnings, in line with PUMA SE's dividend policy, which foresees a payout ratio of 25% to 35%.

brand and strategy update

In the year of PUMA’s 70th anniversary, we kept going full speed to pursue our goal of becoming the world’s fastest sports brand. We further strengthened our position in sports performance. This includes our return to basketball, the signings of top football clubs, such as A.C. Milan, Olympique de Marseille, Borussia Mönchengladbach and São Paulo based Palmeiras, as well as the outstanding performances of our partnered teams, athletes and federations.

Over the past five years, we have focused on five strategic priorities: creating brand heat, a competitive product range, a leading offer for women, improved distribution quality and organizational speed. In 2018, we added a sixth priority with the aim of strengthening our position in the North American sports market – the reentry into basketball.

Both from a sports and business perspective, PUMA’s return to Basketball was off to a promising start. Together with entrepreneur, business mogul and PUMA Basketball Creative Director Jay-Z, we rolled out an exciting campaign, that resonated well with athletes, media and fans. Our first shoe in this category after 20 years, the Clyde Court Disrupt, quickly sold out. The signings of some of the biggest names in basketball, such as Skylar Diggins-Smith, Terry Rozier, Rudy Gay, Danny Green and four-time NBA All-star DeMarcus Cousins, underpinned our performance credibility. In addition, we signed the Top Picks in the annual NBA draft Deandre Ayton, Marvin Bagley III, Kevin Knox, Michael Porter Jr and Zhaire Smith.

For our Football category, the FIFA World Cup 2018 in Russia was the perfect stage to present the PUMA brand and our innovative performance products. Our four partnered national teams Uruguay, Switzerland, Serbia and Senegal as well as our impressive roster of players ensured high brand visibility on the pitch. Uruguay and Switzerland secured PUMA’s presence in the knockout stage, while PUMA players Antoine Griezmann and Romelu Lukaku emerged as two of the top three scorers of the tournament. Antoine Griezmann was even named “FIFA Man of the Match” after scoring the winning goal in the final. All our players were equipped with special editions of the football boots PUMA FUTURE or PUMA ONE.
We also continued to grow our portfolio of players by signing international football stars, such as Barcelona and Uruguay striker Luis Suarez, Vincent Kompany (Manchester City), Axel Witsel (Borussia Dortmund), David Silva (Manchester City), Dejan Lovren (FC Liverpool) and Davie Selke (Hertha BSC).

Our Running and Training category thrived on the extraordinary performances of our track-and-field athletes along with the introduction of innovative products. The 19-year-old Cuban Juan Miguel Echevarria did not only win Gold at the Diamond League Meeting in Stockholm, but also claimed the IAAF title “Highlight of the Season 2018” with his incredible long-jump of 8.83 meters. We also signed additional top athletes, such as Europe’s “fastest man”, French sprinter Jimmy Vicaut.
With our running shoes HYBRID RUNNER and HYBRID ROCKET, we introduced an entirely new midsole technology to the market.

In our Women’s category, we welcomed supermodel Adriana Lima to the PUMA family as an ambassador for Women’s Training. On the product side, our shoe styles PHENOM and DEFY, worn by popstar and social media influencer Selena Gomez, were a great success with our female consumers.

In Motorsport, PUMA Formula One partners MERCEDES-AMG Petronas, Scuderia FERRARI and RED BULL Racing once again dominated the season. The championship titles were claimed by Mercedes and Lewis Hamilton – representing Lewis’ fifth career title.
PUMA Motorsport lifestyle products were in growing demand, particularly in the USA and France.

In our Golf category, our players Rickie Fowler, Lexi Thompson and Bryson DeChambeau continued to add excitement to the PUMA and COBRA Golf brands with numerous victories. Bryson DeChambeau caused a stir with his ONE Length irons, winning five tournaments with this to date unique concept.

In our Sportstyle business, we proved that our “Forever Faster” spirit has already been deeply engrained into the way we do business. When consumers asked for “chunky shoes”, a reemerging sneaker trend from the 1990s featuring thick soles and an overall chunky look, we reacted immediately and introduced our successful new style platforms Thunder, RS-0 and the RS-X.

Apart from PUMA’s 70th birthday, we celebrated another anniversary: the Suede, one of our greatest classics, turned 50. We marked this occasion with a string of special editions and collaborations with several designers, artists and brands. Throughout the year, we launched new Suede editions with designs by fashion icon Karl Lagerfeld, rock legend Paul Stanley and cartoon character Hello Kitty to name but a few.

We continued to improve the quality of our distribution channels. We have worked hard to be a flexible and service-oriented business partner in order to strengthen our relationship with key retailers and gain shelf space. Our direct-to-consumer business has been able to grow through expansion of our retail store network, like-for like sales growth in our existing stores and the continued strong growth of our eCommerce business.

To speed up our organizational processes, we further invested into our IT infrastructure with a strong focus on Business Intelligence, Planning and IT Security. Besides working on the modernization of our distribution centers worldwide, we have put our focus on the development of a new ERP systems, which will be rolled out in the coming years starting 2019.

In 2019, PUMA will start working on a new multichannel distribution center in Geiselwind, Germany. We expect the Geiselwind center, which is the first in a series of investments and upgrades in our logistics operations, to be operational in early 2021.

In addition to our business priorities, social, economic and environmental sustainability remains a core value for PUMA. We continued to execute our 10FOR20 strategy, while collaborating with industry peers, suppliers and NGOs to create positive impact.

Inspired by sprint star Tommie Smith, who made a statement against racism and social inequality with his legendary “silent gesture” at the 1968 Olympics, PUMA launched the #REFORM platform in October. With the help of activists from the world of sports, music and entertainment, among others American rapper Meek Mill, the program supports NGOs and encourages conversations around issues such as universal equality and criminal justice reform in the United States.

The PUMA share returned to the M-Dax in June last year, after our former majority shareholder Kering S.A. distributed approximately 70% of PUMA shares to its shareholders.

outlook 2019

Our business developed strongly in 2018, both in terms of net sales and profitability. We are confident that the positive development will continue in 2019.

For the full year 2019, we therefore expect currency-adjusted sales growth of around 10%. We forecast the gross profit margin to show a slight improvement compared to last year (2018: 48.4%) and operating expenses (OPEX) to increase at a slightly lower rate than sales. Based on the current exchange rate levels, management expects an operating result (EBIT) for the financial year 2019 in a range between € 395 million and € 415 million (2018: € 337.4 million). Management also expects a significant improvement of net earnings in 2019.
With that, PUMA is well on track towards achieving our medium-term ambition of 10% EBIT margin by 2021/22 with average annual sales growth of 10% in constant currency.

The new accounting standard relating to lease accounting (IFRS 16), which has been effective since January 1, 2019, leads to a capitalization of the operating leases on the balance sheet (an increase of approximately € 618 million in assets and liabilities on January 1st, 2019). The outlook for the operating result (EBIT) in a range of € 395 million to € 415 million (see above) includes a positive effect of approximately € 16 million caused by the new accounting standard. Taking into account interest and deferred tax effects of IFRS 16, the estimated impact on net earnings in 2019 is, however, a negative amount of approximately € 7 million.
Please refer to the Notes to the Consolidated Financial Statements, Chapter 1 General, for a detailed description of the new accounting standards and the effects of the first-time application of IFRS 16 Leases.

Find our Financial Calendar for the Full Year 2019 here

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Berlin, germany - february 22, 2019

porsche design and puma celebrate the launch of a new sportswear collection

Lifestyle and performance wear for city streets

“Driven by urban dynamics” was the concept presented in style at yesterday’s launch event for the first high-end sportswear collection from Porsche Design and PUMA. The Kühlhaus Berlin event space offered the perfect setting for various per-formances, staged to showcase the progressive and dynamic nature of the collec-tion.

The two brands complement each other perfectly, bringing together success stories and experiences from the world of motorsport in this new partnership. The timeless, technically inspired design and premium know-how from Porsche Design combines with PUMA’s sports expertise to create the perfect synergy, as can be seen in the collection in the form of innovative cushioning systems for sports shoes, ultra-light materials and taped seams.
The principle of being “ready to react” underpins the entire range, which includes active wear and leisure sportswear plus sports-inspired statement looks. The collec-tion sets new functional and trend-setting benchmarks thanks to innovative features and materials, including Dual Thermo-R technology, which responds to skin temper-ature, breathable evoKNIT material, used to create functional knitted zones, PUMA CELL technology plus unique Hybrid and Jamming cushioning systems. Technical details, cut-outs and dynamic patterns enhance the visual identity of the collection.

Urban individualists will identify the fusion style of ultra-lightweight and adaptive ma-terials combined with new, modern silhouettes. Featuring a narrow and slightly longer cut, the evoKNIT Pro parka is made of water-repellent performance fabric and can be worn as a modern statement piece. The engineered design and func-tionality of the RCT tee makes it a great match for the parka as well as an ideal part of an outfit for other activities: The Dri-Release™ cotton material with capillary ac-tion rapidly pushes moisture to the outside of the garment, dries extremely quickly and the built-in FreshGuard function keeps the wearer feeling fresh. The sweat shorts in innovative spacer fabric with contrasting zips also have the potential to become a summer favourite. The Speed Cat Jamming shoe is the highlight of this look: The unique, transparent mid-sole contains RAW NRGY beads that move freely with every step to deliver ultimate support and cushioning while looking spectacular.

For an informal and comfortable look, the clean, moisture-regulating men’s polo can be combined with the purist and versatile design of the lightweight jacket in two-way stretch material and comfortable sweat pants with technical details. The Classic cap and ergonomic Active backpack with smart interior compartments complete this sporty leisure look and are ideal accessories for an active lifestyle. When it’s time to pick up the pace, it’s easy to keep up with the Hybrid evoKNIT shoe: The Hybrid material plus the interplay between the IGNITE foam and NRGY beads in the midsole allow the shoe to respond to every step, providing energy return to dynamically propel the wearer forwards.

Whether you’re travelling, on a city break or just looking for a sporty outfit that re-flects a dynamic lifestyle, the water-repellent lightweight down jacket is the perfect option every time. This jacket keeps the wearer warm, but it can be worn around the shoulders using the integrated straps once temperatures start to rise. The wa-ter-repellent, elasticated woven pants are also ready for anything when it comes to spontaneous activities, as are the Speed Cat Lux trainers. This shoe unites one of PUMA’s most famous models, which has a long history in motorsport, with the technically inspired, exclusive look and feel of Porsche Design to create a trainer featuring a single-piece, virtually seamless upper. The “urban mobility” look is a style that makes an impression wherever you are.

If you need expressive design and high performance, seek out the Active evoKNIT midlayer. The top section in eye-catching blue offers the perfect fusion of highly functional sports jacket and exclusive knitted hoodie. The innovative material creates a unique, virtually seamless design with maximum freedom of movement and various functional ventilation zones. The dynamic Active evoKNIT tee is ideal for layering underneath. AP shorts, Hybrid running shoes, Fusion cap and the multifunctional gym bag complete this powerful performance knitwear style.

The expressive performance look makes you immediately appear like one of the favourites. The moisture-regulating Active tights with taped seams provide the ideal frictionless base for sports. Worn over the top, the Active shorts feature an expressive pattern that gives an impression of speed before the event has even started – once you’re in action, the shorts deliver on this promise thanks to the side stretch panels. The Active long-sleeve top in PUMA’s bold “Surf the web” tone is unmistakably performance-oriented, making it an essential item for ambitious runners. The breathable Hybrid running shoes and functional Active backpack are more subtle, which perhaps makes them even more impressive. The starting blocks await!

The new Porsche Design x PUMA collection will be available from March 1, 2019, in Porsche Design stores and online at www.porsche-design.com and at www.puma.com.

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hezrogenaurach/Manchester, february 28, 2019

PUMA and city football group sign global long-term strategic partnership

Sports brand to equip Manchester City, one of the world’s leading clubs, plus an additional four City Football Group Clubs

Sports company PUMA and City Football Group have signed a global long-term partnership, which will see PUMA supply the reigning English Premier League champions Manchester City, as well as sister clubs in Australia, Spain, Uruguay and China.

Starting in July 2019, PUMA will be the official partner of Manchester City FC, Melbourne City FC, Girona FC, Club Atlético Torque and Sichuan Jiuniu FC, supplying all representative teams including men’s, women’s and youth football.

“PUMA’s partnership with City Football Group is the largest deal that we have ever done - both in scope and ambition,” said Bjørn Gulden, CEO of PUMA. “We are very excited to partner with City Football Group, whose success, ambition and drive for innovation has seen them setting new standards, on and off the field. We look forward to building the most innovative partnership in football by redefining the sports partnership model both on and off the pitch. We want to maximise on-field performance as well as football culture, in areas such as music, gaming and fashion to connect and inspire the fanbase of each team.”

“This announcement marks the start of an exciting new chapter for City Football Group,” said Ferran Soriano, CEO of City Football Group. “Our relationship with PUMA, covering five City Football Group clubs across four continents, will reset the model for sports partnerships on a truly global scale whilst being locally relevant and authentic for fans around the world. PUMA share our vision for challenging expectations, and we are looking forward to what we believe will be a ground-breaking partnership.”

This PUMA and City Football Group partnership is shaped by shared values of authenticity and innovation, and a genuine love for beautiful football. These values will drive the partnership to change the game beyond the pitch, pioneering new ways to push forward the clubs’ communities, teams, and football whilst also bringing fans together at both local and global levels.

PUMA and Manchester City are already linked via several player partnerships, including Caroline Weir, Pauline Bremer and Nikita Parris in the Women’s Team in addition to men’s club captain Vincent Kompany, midfielder David Silva and striker Sergio Agüero, who famously scored in the last seconds of City’s final game of the 2011/2012 season to clinch the first of three league titles for the club in the modern era.

Media Kit below contains the Pres Release and Images:

1. Ferran Soriano (CEO City Football Group & Manchester City) & Bjørn Gulden
2. Delfi Geli (President - Girona FC) & Bjørn Gulden
3. Pauline Bremer (MCFC women’s player), Vincent Kompany (MCFC men’s captain) & Bjørn Gulden
4. Pauline Bremer (MCFC women’s player) & Vincent Kompany (MCFC men’s captain)

Photo Credits (Cover Image): Photo by Manchester City FC/Man City via Getty Images