Neil Barrett has worked closely with PUMA’s design team to combine the brand’s technical sport expertise with his fashion sensibility for a full spectrum of Italia products that spans performance sport, lifestyle and fashion. The inspiration for the new playing kit came from protective armour worn by Roman gladiators blended with Barrett’s signature “layered” garments. Various items from the jersey, short and shocks, reflect this inspiration.

“PUMA is a brand known for blending elements of sport, lifestyle and fashion and this collaboration with Neil Barrett and the Italian National Team is our strongest campaign to date where each element has been executed under one umbrella,” said Jochen Zeitz, PUMA Chairman and CEO. “In January we debuted the fashion element on the catwalk here in Milan, and now we are back to reveal the kit along with the rest of the range.”

Neil Barrett specifically designed a formal “representation suit” for the players. The team officials, both men and women, will also wear a PUMA suit designed by Barrett. A version of this will be available for consumers this autumn in PUMA’s 96 HOURS collection, which was debuted at Milan Fashion Week during Neil Barrett’s catwalk show.

To complete the Italia collection, there is a complete lifestyle range. This collection blends PUMA’s sportlifestyle positioning under the direction of Neil Barrett. Key elements of this range include the integration of embroidered badges and unique appliqués.

All PUMA Italia products will be available at retail on April 3 in PUMA Flagship Stores and select retailers.

PUMA AG ANNOUNCES ITS CONSOLIDATED FINANCIAL RESULTS FOR THE 1ST QUARTER OF 2004

Financial Highlights 1st Quarter:

• Branded sales increase 22%
• Consolidated sales achieve strong growth of nearly 30% – Apparel sales up 39%
• Gross profit margin reaches record level of 51.7%
• Profitability exceeds expectations – EBT 62.6% above last year
• Improvement in EPS – €5.02 versus €3.08 in Q 1

Outlook

• Future orders up by more than 20% or 24% on a currency neutral basis
• Management increases full year guidance – sales growth between 15% and 20% and earnings growth of more than 30% expected
  
  

Sales and earnings review

Consolidated sales up nearly 30%

2004 started very positively with Q1 consolidated sales growth of 29.3%, translating to sales of €443.8 million versus €343.2 million last year. On a currency neutral basis, sales were up 33.2%. Excluding the first-time consolidation of PUMA Japan (initial consolidation started April 1, 2003), total organic growth of 21% (currency adjusted 24.9%) was realized.

As expected, Apparel momentum continued on a very high level and sales recorded organic growth of 39.1% (currency adjusted 42.3%) reaching €111.2 million. Footwear sales grew by 22.7% (currency adjusted 26.1%) to €305.9 million and Accessories increased 90.9% (currency adjusted 93.6%) to €26.7 million. Excluding the first-time consolidation, Footwear was up 18.3% and Accessories 30.6% (currency adjusted).

All regions contributed positively to the performance. Europe was up 22.9%, the Americas achieved growth of 24.4% (9.2% in Euro currency), Asia/Pacific increased by 251.8% or 26.4% excluding Japan and the Africa/Middle East region realized an increase of 49.9%.

PUMA AG announces its consolidated financial results for the 2nd Quarter and 1st Half-Year of 2004

Financial Highlights:

• Branded sales increase 20% in Q2 and 21% ytd.
• Consolidated sales rise 17% in Q2 and 24% ytd.
• Gross profit margin sustained at a high level of 51%.
• EBT increase 41% in Q2 and 53% in the first half.
• EPS increase 47% to €3.43 and by 56% to €8.45 respectively.
  
  

Outlook:

• Due to a strong order intake total future orders are up by 22% end of June.
• New records expected across the board in FY 2004: Sales growth of about 20% and earnings growth of more than 30% now anticipated
  
  

Sales and earnings review

Sales momentum continues

During Q2, consolidated sales increased by 17.1% to €352 million. The Apparel segment realized the strongest growth of 26.3%, reaching €99 million. Footwear was up 13.3% to €229 million and Accessories improved by 19.2% to €25 million. On a currency neutral basis, total sales in Q2 were up 18.3%. Q2 marks the first quarter in which year-to-date comparisons reflect full consolidation of PUMA Japan, as the first-time consolidation took place April 1 of last year. Sales in the first half of 2004 grew by 23.6% to €796 million; this marks a currency neutral improvement of 26.2% versus the first half of the previous year. First half Footwear sales grew by 18.5% to €535 million, Apparel by 32.8% to €210 million and Accessories jumped by 48.1% to €51 million.

Branded sales exceed €1 billion in H1

PUMA’s branded sales, which include consolidated sales and licensee sales, reached €465 million during Q2, thus marking a 20.4% (currency adjusted 20.9%) increase over last year. During the first six months, a growth rate of 21.1% was realized, yielding YTD sales in excess of €1.0 billion. Footwear sales rose by 14.7% to €590 million, Apparel by 29.9% to €349 million and Accessories by 38.7% to €75 million. Currency adjusted growth was even higher, reaching 23.1%. After the end of H1 Footwear accounted for 58.2% (PY 61.5%), Apparel for 34.4% (PY 32.1%) and Accessories for 7.4% (PY 6.4%) of global branded sales.

Strong performance in licensed business

Overall, PUMA’s licensed business showed very positive developments. In Q2, licensee sales increased by 32% to €112 million, driven by sales in Asia. Sales in H1 increased by 12.9% to €218 million or by 34.2% excluding the first time consolidation effect from Q1. During Q2 PUMA generated royalty and commission income of €11 million. Despite the consolidation effect of the Japanese business in Q1, royalty and commission income reached €22 versus €21 million in the first half of ‘03. On a like-to-like basis, royalty and commission income increased by approximately 23%.

 “With EganaGoldpfeil (Holdings) Ltd we add a truly international player to our licensee portfolio,” states Jochen Zeitz, CEO and Chairman of the Executive Board of PUMA AG. “PUMA has over the past years successfully established business relationships with licensees in several sports and lifestyle related areas. The licensing contract with our new partner is another step towards continuing to fulfill PUMA’s strategy of exploring the potential of the brand by seeking new fields of business that lie outside of our core operations.”

“PUMA is one of the most successful Sportlifestyle brands world-wide,” states Theo Birkemeyer, one of the executive directors of EganaGoldpfeil. “The co-operation with such a strong partner will help us to further develop our business in design and lifestyle oriented market segments.”

EganaGoldpfeil already has extensive experience in selling exclusive licensed brand names such as Cerruti 1881, Esprit, Paolo designed by Paolo Gucci, Field & Stream (in US only), Outdoor Adventures, MEXX Time and JOOP. Other famous timepiece products sold under trademarks owned by the EganaGoldpfeil Group include Dugena, Goldpfeil, Carrera, Pierre Cardin, Prätina and Junghans.

“I am very pleased with our new partnership with Ferrari and its Formula 1 team,” says Jochen Zeitz, CEO and Chairman of PUMA AG. “Over the past years, PUMA has strengthened its position as one of the leading suppliers in the motorsport area. Scuderia Ferrari Marlboro is at the top of Formula 1 and like PUMA they combine high performance, technological competence and design with innovative styling. This makes the team the perfect fit for us and we are proud to work with such a successful partner and to celebrate future triumphs together with them.

Jean Todt and Jochen Zeitz

Jean Todt, Director General of Ferrari, as well as responsible for the Formula 1 team adds: “PUMA is one of the leading suppliers in motorsport and we are looking forward to working with our new partner.”

With the Future Cat (high and low cut) the merchandising collection – available to the consumer from March 2005 – features a unique product. The red and white shoe carries both the Ferrari Racing Shield as well as the PUMA logo. The range of articles will also include the team-shirt and team-polo (long- and short-sleeve) as well as caps, sweatshirts, rainjackets, and the official replica-shirt, identical to those worn by the team. As a special design feature the well-known footwear Formstrip is incorporated into the epaulette.

Ferrari has a long and proud history in motorsport. As early as 1951, Ferrari achieved its first victory at the Grand Prix of Great Britain. Besides the early success in securing this season’s World Drivers’ title as well as the World Constructors’ Championship, further highlights have been the 13 other Drivers’ and Constructors’ Championship titles the team collected over the past decades.

PUMA performance racing shoes were first used by various drivers and teams in the 1970s and early 1980s. And since 1998 PUMA’s motorsport division has gradually assembled an impressive portfolio of sponsorships. In the 2004 season PUMA is the official supplier of racing gear in several motorsport disciplines in addition to Formula 1, such as WRC, F 3000, DTM, etc.

 “I feel very honored to have been elected president of FESI,“ says Horst Widmann. “It will be my aim to strengthen the standing of the European sporting goods industry towards the European Commission and to lobby the interests of the federation not only in Brussels, but also with the different EU member governments. This will also be beneficial for the consumers.“

Mr. Widmann will in the future put further emphasis on international trade relations, import regulations, environmental and social issues, trademark rights as well as effective influential activity towards the important international federations and organizations such as the Olympic Committee and FIFA.

Horst Widmann has worked in the sports industry for over 30 years and has been with PUMA since 1990.

PUMA AG announces its consolidated financial results for the 3rd Quarter and First Nine Month of 2004

Financial Highlights:

• PUMA reports strongest quarter in history.
• Consolidated sales grow almost 17% in Q3 and 23% ytd. (currency neutral).
• Highest gross profit margin ever achieved in a quarter.
• EBIT margin sustains a high level: 27% in Q3 and 25% ytd.
• Earnings per share up 22% to €5.30 and 41% to €13.75 respectively.

Outlook:

• Management anticipates new records across the board in FY2004, and upgrades earnings expectations: Sales growth of around 20% and earnings growth between 35% and 40% now anticipated.
• 35th consecutive quarter of order growth
• Future orders are up by 19% currency adjusted.
  
  

Sales and earnings review

Strong sales performance

Third Quarter showed another outstanding performance with growth in consolidated sales of 16.5% on a currency-neutral basis or by 14.6% to €461 million in Euro currency. Footwear sales grew by 13.9% (in Euro terms 12.4%) to €301 million, Apparel increased 19.3% (17.6%) to €130 million and Accessories were up 27.1% (25.1%) to €31 million. Currency neutral sales for the first nine months jumped by 22.5%. In Euro terms, sales were up 20.1% to €1,257 million, nearly reaching full year sales of FY2003. Footwear sales grew by 18.1% (in Euro terms 16.2%) to €836 million, Apparel by 28.5% (26.6%) to €339 million and Accessories recognized the strongest growth of 39.8% (38.6%) reaching €82 million.

Branded sales growth in line with consolidated sales

PUMA’s global branded sales, which include consolidated and licensee sales, totaled €590 million during Q3, an increase of 17.2% (in Euro terms 15.2%) over last year. Licensed sales contributed with an increase of 19.7% (17.3%) to global sales. During the first nine months, branded sales grew by 20.9% currency neutral or by 18.9% to €1,604 million. Footwear sales rose by 15.4% (in Euro terms 13.4%) to €922 million, Apparel by 27.7% (25.7%) to €556 million and Accessories by 36% (34%) to €126 million. Sales from licensees were up by 15.3% or 14.5% respectively.

The three executions are planed to run on either terrestrial, or national, and cable stations globally. The concepts running this December feature three marquee PUMA products. In one execution that highlights the vibrant color palette of the TX-3, a 1980’s running shoe, hordes of blue butterflies swoop in and carry the shoe off screen. The second spot features any army of ants that flex their muscles by walking off with the Scrill, referencing the earthy character of the rock climbing inspired shoe. One of the most playful spots features PUMA’s signature track training shoe, the Taper, being carefully inspected and handled by a curious monkey.

In addition to the TV campaign, a print execution will follow and both will run through Q1 of 2005. The print advertising reflects the focused simplicity and whimsical nature of the TV spots.

This campaign will also carry though into creative media tactics engineered by PUMA’s global media buy agency, Zenith Media. PUMA’s brand management teams headed by Antionio Bertone drive the visual concepts with the tactical creative concepts directed by Andrew Zuckerman.

PUMA AG announces its consolidated financial results for the 4th Quarter and Financial Year 2004

Highlights Q4:

• Consolidated sales up 20%
• 51.9% strongest gross profit margin in a fourth quarter
• EBT above expectation
• EPS reaches 2.31 € versus 1.51 € in last year’s quarter

Highlights FY 2004:

• Worldwide brand sales exceed € 2 billion for the first time
• Consolidated sales up almost 23% currency adjusted
• Gross profit margin reaches new record at 51.9%
• EBT once again on record level with €371 million
• EPS increases 43% to 16.06 €
  
  

Outlook:

• Management expects new record in sales and further increase in earnings
• Future orders increase by nearly 18% currency adjusted
  
  

In the 2004 financial year, PUMA continued the positive development of previous years and further expanded its position as a desirable Sportlifestyle brand. The financial targets set at the beginning of the year were significantly exceeded. The financial year closed with double-digit growth for the sixth consecutive year. For the first time, worldwide brand sales reached the € 2 billion mark with a currency-adjusted increase of over 21%. Consolidated sales rose 23%. In addition to the strong sales growth, the gross profit margin likewise climbed to a new record high of nearly 52%. Pre-tax profit reached € 371 million, growing faster than sales for the sixth consecutive year. Earnings per share jumped from € 11.26 to € 16.06. At year-end, PUMA’s share was listed at € 202.30. This corresponds to another significant value increase of 45% compared to the end of the previous year.

The Senegal National Team, nicknamed the Lions of Teranga, will debut its new PUMA Cellerator kit and training line in the upcoming friendly match against fellow PUMA team Cameroon, a.k.a the Indomitable Lions, to be played on neutral ground in France on February 9th.

Cellerator, PUMA’s established statement football playing kit and training line, represents the pinnacle performance solution within the brand’s football apparel product offering. All Cellerator apparel takes advantage of PUMA’s AMT (Advanced Movement Technology). This technology incorporates articulated cut lines to reduce friction, ensuring the player has a complete freedom of movement. In addition, the textile and material selection across the range has been tailored to players’ requirements – be it breathability, ventilation, moisture management and, naturally, comfort.

Senegal played its first international game in 1961 and have since successfully qualified for the African Cup of Nations Finals on nine occasions with their best finish in 2002, placing second. Later that year, the Lions of Teranga became the second African team to advance to the World Cup quarterfinals.

The Senegal National Team is currently en route for the 2006 FIFA World Cup facing Togo, Zambia, Congo, Liberia and Mali in Group 1 of the CAF continental qualifications. The teams’ next upcoming World Cup qualifier is a home game against Liberia on March 25th.

The new PUMA store will act as a laboratory or incubator for the brand to experiment with new ideas and infuse the PUMA personality with the design sensibility of experts from various industries. Each collection in the store is created to stand-alone, however, they are being presented as a together under one roof for the first time with the opening of the new store.

“After embarking into the sport-fashion segment in the mid-1990’s, we felt it was time to create a PUMA environment that showcases the inherent design of these products,” said Jochen Zeitz, CEO and Chairman of PUMA AG. “This store is a first in many respects. PUMA is the first to take the sport-fashion concept a step further by creating a multi-branded store environment. The Meatpacking District store will also provide a setting to connect directly with a cutting edge consumer.”

Two distinctive logos, the jumping cat and the formstrip, typically identify PUMA product to consumers. The existing PUMA Concept Stores utilize the jumping cat branding as its focal point for design direction. In contrast, the PUMA Store Meatpacking District takes its lead for interior design from the brand’s signature formstrip. Intended to highlight the unique aspects of a multitude of collections in an inclusive space, the store also has a black interior that provides a neutral backdrop to focus consumers on the designs of each range. Each of the fixtures in the store is inspired by sport and it is designed to be a place where all of PUMA’s sport-fashion brands can intersect and interact in a unique way. This is shown through new graphics that incorporate the individual logos of all of these collections.

New York, specifically the Meatpacking District, draws the right clientele to support a retail environment dedicated specifically to PUMA’s sport-fashion collections. Known for embracing design and progressive thought, New York is also the center of fashion for the United States. Just as the PUMA Concept Store in New York is the right fit for Broadway in Soho, this new PUMA store is uniquely suited for W 14th Street in the Meatpacking District.