Herzogenaurach / Germany and Clichy / France, September 26, 2014
PUMA AND L’ORÉAL SIGN A LICENSE AGREEMENT FOR BEAUTY PRODUCTS

Sports company PUMA SE and leading beauty company L’Oréal have signed a license agreement for beauty products, becoming effective 1 January 2015. PUMA’s license contract with former personal care product licensee Procter & Gamble will terminate on 31 December 2014.

 

About L’Oréal

L’Oréal has devoted itself to beauty for over 105 years. With its unique portfolio of 28 international, diverse and complementary brands, the Group generated sales amounting to 23 billion euros in 2013 and employs 77,500 people worldwide. As the world’s leading beauty company, L’Oréal is present across all distribution networks: mass market, department stores, pharmacies and drugstores, hair styling salons, travel retail and branded retail.

Research and innovation, and a dedicated research team of 4,000 people, are at the core of L’Oréal’s strategy, working to meet beauty aspirations all over the world and attract one billion new consumers in the years to come. L’Oréal’s new sustainability commitment for 2020 “Sharing beauty with all” sets out ambitious sustainable development objectives across the Group’s value chain.

www.loreal.com

 

CONTACTS AT PUMA

Corporate Communications

Mr Ulf SANTJER
+49 9132 81 2489
ulf.santjer@puma.com

Global Licensing

Mr Anthony WARD
+49 9132 81 3168
anthony.ward@puma.com

CONTACTS AT L'ORÉAL

Individual shareholders and market authorities

Mr Jean Régis CAROF
Tel: +33 1 47 56 83 02
jean-regis.carof@loreal.com

Financial analysts and Institutional investors

Mrs Françoise LAUVIN
Tel: +33 1 47 56 86 82
francoise.lauvin@loreal.com

Journalists

Stephanie CARSON-PARKER
Tel: +33 1 47 56 76 71
stephanie.carsonparker@loreal.com

 

Photo Credits: Robert Ashcroft/ PUMA
Herzogenaurach, Germany, October 28, 2014
PUMA EXTENDS PARTNERSHIP WITH THE MERCEDES AMG PETRONAS FORMULA ONE TEAM

PUMA will continue to outfit team drivers Lewis Hamilton and Nico Rosberg with its lightweight race suits and footwear. All technical pit personnel will also wear PUMA’s latest innovations in performance race wear. 

A licensed MERCEDES AMG PETRONAS collection will also continue to be developed and distributed by PUMA which will include footwear, apparel and accessories that are inspired by the F1 team’s heritage and driver personalities.

Toto Wolff, Head of Mercedes-Benz Motorsport, commented: “PUMA has been a key performance partner for the three seasons we have now worked together, ensuring our drivers are outfitted in the lightest and most innovative performance race wear. This is an important component of our racing operation within a continually evolving and challenging industry. As a licensed partner, PUMA has excellent capabilities of designing, developing and distributing high quality products that carry our brand identity. This partnership is very important for MERCEDES AMG PETRONAS and we are delighted that it will continue for the years ahead.”

Bjørn Gulden, Chief Executive Officer for PUMA said: “We are very excited to continue our partnership with MERCEDES AMG PETRONAS, who, after an incredible season this year will no doubt continue to achieve great things. PUMA has good heritage in motorsport and we are constantly working with our partner teams to innovate our performance race apparel and footwear, and help them be the fastest and achieve success. We’re proud to work with the MERCEDES AMG PETRONAS team and look forward to the next phase of this relationship.”

*Subject to official confirmation by the FIA of the results of the 2014 FIA Formula One World Championship

Photo Credits: Robert Ashcroft/ PUMA
Herzogenaurach, 7 November 2014
PUMA’S THIRD QUARTER SALES IMPROVE

NEGATIVE IMPACT OF VOLATILE CURRENCIES CONTINUES

2014 Third Quarter Facts

  • Currency adjusted sales increase by 6.4% to € 843 million
  • Footwear sales return to growth
  • OPEX increase due to Forever Faster marketing campaign
  • EBIT of € 46 million
  • Net Earnings of € 29 million
  • Strategic equity investment made in Borussia Dortmund

2014 Nine Month Facts

  • Currency adjusted sales increase by 2.4% to € 2.22 billion
  • Slight gross profit margin decline to 47.2%
  • OPEX increased by 3.7%
  • EBIT of € 117 million
  • EPS amounts to € 4.59
  • Successful launch of worldwide Forever Faster brand campaign

Bjørn Gulden, Chief Executive Officer of PUMA SE: “In a good third quarter, PUMA achieved sales that were slightly better than expected. Footwear sales were up for the first time in seven quarters, and operating profits met our expectations. The launch of the Forever Faster marketing campaign was well received by both consumers and retailers. We told our consumers that PUMA is back and showed our retail partners that we deliver on our promises by investing in media campaigns. We feel that things are moving in the right direction, but as we have said all along: We know that the repositioning of PUMA and the turnaround of the business will take time as we need to continue to build confidence in the marketplace. I am convinced that our efforts have already translated into better products, better marketing and more efficient operations. In addition, we have now defined the key priorities which will mark the start of our IT infrastructure upgrade, laying the foundations for a fast, lean and efficient company in the future.”

 

Third Quarter 2014

Sales increase

PUMA’s 2014 third quarter sales performance was positive, as consolidated sales rose by 6.4% currency adjusted to € 843 million. This represents an increase of 3.7% in Euro terms, as continuing currency effects from various countries had a negative impact on sales.

Sales performance stronger in all regions and markets in Q3

Sales in the EMEA region increased by 4.4% currency adjusted to € 388 million. Performance improved in Western Europe, notably in Germany, where the new Borussia Dortmund jerseys were well received, as well as Switzerland and France, as sales of Teamsport and Lifestyle products rose.

Sales increased by 6.3% currency adjusted to € 265 million in the Americas, as North America continued to benefit from improved wholesale business, including key account initiatives like the PUMA Labs at Foot Locker. Sales in Latin America also rose, supported by a strong Teamsport business within the region.

Asia/Pacific sales increased by 10.7% currency adjusted to € 191 million due to growth in all key markets, including India, China, Korea and Japan. This growth was supported by the successful start of the Forever Faster brand campaign, the positive reception of PUMA’s new Arsenal jerseys and a strong Accessories business.

All product segments positive

Third quarter Footwear sales rose by 2.0% currency adjusted to € 374 million as Teamsport sales, particularly the PUMA evoSPEED boot, continued to improve.

PUMA’s third quarter Apparel sales rose by 11.4% currency adjusted to € 323 million, supported by strong demand for our Teamsport products, especially Arsenal jerseys and kit.

Accessories sales also improved by 7.5% currency adjusted to € 147 million due to continued demand for socks and bodywear. However, Golf equipment sales declined in the quarter as the golfing environment remained very weak.

Gross profit margin lower

PUMA’s gross profit margin declined from 47.1% to 46.3% for the third quarter of 2014 on the back of adverse currency impacts as well as shifts within the product mix which influenced the margin negatively. In addition, stronger sales in our distribution business within Latin America, particularly in Footwear, led to a decline in the Footwear margin from 44.4% to 41.9%. Apparel margin decreased slightly from 49.9% to 49.6%. However, the margin for Accessories improved from 48.6% to 50.3%.

OPEX increased

PUMA’s operating expenditures increased as expected in the third quarter, from € 309 million to € 349 million, due to the higher marketing expenditures associated with the Arsenal partnership and the launch of the Forever Faster brand campaign ahead of the back-to-school season.

Operating Result (EBIT) decreased

The decline in PUMA’s operating result (EBIT) from € 80 million to € 46 million in the third quarter of 2014 is mainly due to significantly higher marketing expenditures within the OPEX.

Financial Result

The financial result improved from € -1.5 million to € -0.7 million in the third quarter. The result remained negative due mainly to currency conversion impacts.

Net earnings

PUMA’s consolidated net earnings declined from € 53 million to € 29 million. As a result, earnings per share decreased from € 3.53 to € 1.93 in the third quarter of the year.

 

Nine Months 2014

Currency adjusted sales rose by 2.4% for the first nine months of the year to € 2.2 billion. As currency volatility continued to have a negative impact in the third quarter, albeit to a lesser extent, nine month sales in Euro terms declined by 2.9%.<7p>

Regional performances positive

Currency adjusted sales in the EMEA region rose by 1.4% to € 981 million, thanks to improvements in the United Kingdom and throughout Eastern Europe, the Middle East and Africa.

Sales in the Americas increased by 3.5% currency adjusted to € 751 million, with sales growth evenly spread over North America and Latin America.

Asia/Pacific sales rose by 2.5% currency adjusted to € 490 million, with positive performances throughout the region except in Japan, where the business climate in the first half of the year prevented a better result.

Apparel and Accessories sales increased

In terms of product segments, Footwear sales declined by 4.4% currency adjusted to € 972 million in the first nine months of 2014. Sales in Apparel increased by 9.1% currency adjusted to € 810 million, and Accessories sales also rose by 6.9% currency adjusted to € 439 million.

PUMA’s Retail sales rose

PUMA’s own and operated retail sales for the first nine months of the year increased by 3.4% currency adjusted to € 432 million, equal to 19.5% of total sales, as comparable sales in our stores improved during the period.

Gross Profit Margin down slightly

PUMA’s nine month gross profit margin declined slightly to 47.2% due to negative impacts from currency/hedging. The decline in the Footwear gross profit margin from 44.9% to 42.9% was almost offset by increases in the Apparel margin, from 49.6% to 50.4%, and in the Accessories margin, from 50.2% to 50.7%.

OPEX increase for the first nine months of the year

PUMA’s operating expenditure increased due to increased marketing costs associated with the launch of the Forever Faster brand campaign and the Arsenal partnership. However, tight control was maintained on all other areas of expenditure. OPEX rose by 3.7% from € 911 million to € 944 million compared to the same period last year.

Operating Result (EBIT) lower

Continued currency weakness in a number of countries had a negative impact on sales and gross profit. In addition, marketing spending increased due to our Forever Faster Campaign and new assets like Arsenal. As a result, PUMA’s EBIT declined as expected from € 190 million to € 117 million for the first nine months of the year, equivalent to 5.3% of sales.

Improved Financial Result

PUMA’s financial result improved from € -9.5 million to € -5.2 million. The negative result was caused mainly by the impact of foreign currency fluctuations.

Net Earnings / Earnings per share decline

Consolidated net earnings fell from € 121 million to € 69 million for the first nine months of 2014, with earnings per share declining from € 8.07 to € 4.59.

 

Net Assets and Financial Position

Focus on Working Capital continues

PUMA retained its focus on working capital management in the third quarter. As a result, Inventories were broadly flat at € 573 million and trade receivables increased by 4.6% to € 547 million, in line with the sales growth.

Cashflow / Capex

PUMA’s Free Cashflow (before acquisitions) moved from € -75 million to € -91 million for the first nine months of 2014, due to lower Earnings but supported by a much improved working capital position.

Capital expenditure rose from € 34 million to € 48 million as PUMA continued to invest in the opening and refurbishment of selected retail stores, as well as office and IT equipment.

Net Cash Position

PUMA’s Net Cash Position at the end of September 2014 declined slightly from € 246 million to € 231 million, also impacted by the payment for a 5.0% equity stake in Borussia Dortmund.

 

Brand Update

In September, PUMA participated in the capital increase of its strategic partner Borussia Dortmund GmbH & Co. KGaA (BVB) by acquiring 4,600,000 shares of the club, representing 5.0% of the voting rights. As Borussia Dortmund’s technical supplier since July 2012, we look forward to continuing our successful partnership with BVB as its close partner and shareholder. As one of the top clubs in Germany and Europe, Borussia Dortmund is a perfect fit for PUMA, increasing our brand awareness on a national and international level.

In addition to Borussia Dortmund, PUMA also added top English Premier League club Arsenal FC to its list of Teamsport partners at the start of the quarter. Our sales of replica jerseys, fanwear and associated accessories have been very satisfying since the new kits were launched in July.

In Motorsports, the PUMA partnered Mercedes AMG Petronas F1 team showed that they are truly Forever Faster, sealing the 2014 Constructor’s Championship with 3 races to go and thereby confirming their status as the fastest team in the world’s fastest sport. It has been a superb season for the team, with Lewis Hamilton and Nico Rosberg dominating the sport. PUMA has also extended its partnership with BMW Motorsport as the Official Supplier of Team and Racewear for all BMW Motorsport racing operations. With a relationship dating back to 2004 when PUMA first partnered the BMW Williams Formula One team, BMW Motorsport is PUMA’s longest standing partner in Motorsport and remains a core part of our Sports Marketing portfolio.

 

Strategy Update

Our strategy encompasses the repositioning of PUMA as the World’s Fastest Sports Brand, the improvement of our product engine, the optimization of our distribution quality and increasing the speed within our organization and infrastructure. In the third quarter we continued to progress well on all our key strategic priorities that are crucial to ensuring that 2014 marks the start of the turnaround.

In terms of our brand repositioning, August saw the launch of the biggest marketing campaign in PUMA’s history, which marked the start of our repositioning as a true Sports Brand to our consumers and retail partners. The objective of the campaign was to demonstrate that PUMA is back in sports and that our brand has great assets and a distinctive attitude: Brave, confident, determined, and joyful. We achieved this objective as our campaign reached our consumers in 35 countries, generating 1 billion TV impressions in our target group as well as 31 million online views. The market surveys showed a very positive consumer reception. The launch of this campaign marks the start of a long-term marketing strategy, with continuous investment up to the Rio de Janeiro Olympic Games in 2016 and beyond.

To improve our product engine, we initiated key projects to improve our product designs, develop more innovative technologies and increase the commerciality of our product range. The first results have already been implemented for the coming Spring/Summer 2015 season, and the feedback from our retail partners make us very confident that we are heading in the right direction. With the continued positive feedback received for our Autumn/Winter 2015 collection, we are positive that we are on the right path.

In order to improve the quality of our revenues and distribution, we have developed joint product and marketing programs with our key retailers to showcase our brand in the right retail environment and push sell-through with our partners. Our most prominent example is currently the PUMA Lab at Foot Locker, which we launched in Feb 2014 and has developed very positively as we have expanded our presence in the US throughout the year. The success of the PUMA Lab has not only improved our business with Foot Locker but also generated a positive spill-over effect on to other key retailers in the US marketplace – both with performance and lifestyle accounts. In 2015, we will continue to foster our collaborations and will launch further product and marketing programs with our most important key accounts in every Region.

We have also continued to optimize our organizational structure and setup by making it faster. With the finalization of the relocation of our Global and European Retail Organization from Oensingen, Switzerland, to our Headquarters in Herzogenaurach as of September 30th, we finalized the last out of our three major consolidation projects in 2014. This relocation followed the closure of our PUMA Village Development Center in Vietnam as of May 2nd and the relocation of our Lifestyle Business Unit from London to our Headquarters in Herzogenaurach as of May 31st.

Going forward, our strategic priorities will be complemented with a further objective: the upgrade of our current IT infrastructure to match the industry’s best practice benchmark. The process and system due diligence of our new COO revealed significant improvement potential in our IT and process landscape and we have now defined the key priorities which will mark the start of our IT infrastructure upgrade. We are very confident that our investment in these areas will lay the foundations for a lean and efficient company in the future.

 

Outlook for the Financial Year 2014

2014 continues to be a turnaround year for PUMA, where the brand will be re-established in the market place and brought back to a path of profitable and sustainable growth in the mid-term. To support this turnaround, PUMA will continue to invest strongly in marketing and sports assets as well as start investing in IT infrastructure, while maintaining tight control on other operating expenditures.

Given PUMA’s results through the first nine months of the year, we now expect a low single digit increase in currency adjusted net sales (previously flat) and a stable gross profit margin (previously slight increase) for the full year. As planned, OPEX will increase significantly based on increased Marketing investments throughout the second half of the year. PUMA’s full year guidance for EBIT and Net Earnings (approx. 5% and 3% of net sales respectively) remains unchanged; we reiterate that the continued volatile currency movements will have a negative impact of around 50 basis points on the EBIT and Net Earnings margin for the year.

Notes to the editors:

  • This press release and financial reports are posted on about.puma.com.
  • PUMA SE stock symbol:
    Reuters: PUMG.DE, Bloomberg: PUM GY,
    Börse Frankfurt: ISIN: DE0006969603– WKN: 6969603

Notes relating to forward-looking statements:

This document contains forward-looking information about the Company’s financial status and strategic initiatives. Such information is subject to a certain level of risk and uncertainty that could cause the Company's actual results to differ significantly from the information discussed in this document. The forward-looking information is based on the current expectations and prognosis of the management team. Therefore, this document is further subject to the risk that such expectations or prognosis, or the premise of such underlying expectations or prognosis, become erroneous. Circumstances that could alter the Company's actual results and procure such results to differ significantly from those contained in forward-looking statements made by or on behalf of the Company include, but are not limited to those discussed be above.

Photo Credits: Robert Ashcroft/ PUMA
Vienna, Austria, November 11, 2014
PUMA AND AUSTRIAN FOOTBALL FEDERATION (ÖFB) EXTEND LONG TERM CONTRACT

GLOBAL SPORTS BRAND AND ÖFB CELEBRATE 40 YEARS OF PARTNERSHIP

PUMA and the Austrian Football Federation (ÖFB) today announced an extension to their longest running partnership at a press conference in the Ernst-Happel-Stadium of Vienna. Celebrating a relationship that has been in place for 40 years, PUMA and the ÖFB will continue to work together through a new long-term period. The partnership between the ÖFB and PUMA has seen the national team play in four FIFA World CupsTM, one UEFA European ChampionshipTM and all qualifying and friendly matches in PUMA kits throughout this period.

Along with the national team’s promising start in the qualification for the 2016 UEFA European ChampionshipTM, the extension of the long term partnership is another positive sign for the future of Austrian football. The new agreement sees PUMA providing the official playing kits for all associated ÖFB teams, including the men’s, women’s and all youth national teams. PUMA also remains to be the federation’s official partner in relation to replica kits, fanwear and other merchandise.

Christian Voigt, Senior Head of Global Sports Marketing at PUMA said, “For us this is a very special partnership, the longest standing in PUMA’s history. Over the past 40 years we have formed a relationship of trust, and one that has been consistently based on common values and aspirations. We are delighted with this extension, and wish the ÖFB great success as they look to build on their great start to the European ChampionshipTM qualification.”

ÖFB president Leo Windtner added, “We have long standing relationships with most of our partners, all of which are based on trust, mutual appreciation and the right balance between giving and taking. However, a partnership over such a long period of time is unique to us, and it shows it is profitable for either side. I am very pleased about PUMA keeping their faith with us, continuing to be a great technical partner.”

Alfred Ludwig, ÖFB General Director commented, “Working with the same technical partner for four decades is proof in itself of a highly successful partnership. PUMA have been a great partner during this period of time and we now look forward to the upcoming years and their ongoing support. We appreciate this partnership especially from a product point of view, where PUMA always perform at high standards and surprise with exciting innovations, like the ACTV technology they launched this year. These bring us great benefit.”

Photo Credits: Robert Ashcroft/ PUMA
Herzogenaurach, Germany, December 05, 2014
STEFANO CAROTI LEAVES PUMA

Stefano Caroti leaves PUMA at his own request for family reasons, effective 31 December 2014. The Administrative Board of PUMA accepts this request of the Chief Commercial Officer (CCO) with great regret. The Administrative Board thanks Stefano Caroti for his long standing high engagement and his successful service. For his future, PUMA wishes Mr. Caroti all the best and furthermore much success. The Kering group and Mr. Caroti remain on cordial terms with each other after the resignation of Mr. Caroti.

The responsibilities of the Chief Commercial Officer on board level are being taken over by Chief Executive Officer Bjørn Gulden, effective 1 January 2015.

Herzogenaurach, Germany, December 16, 2014
RIHANNA TO PARTNER WITH PUMA

RIHANNA NAMED GLOBAL PUMA AMBASSADOR

Today, PUMA and Global Cultural icon Rihanna, announced a new multi-year partnership, kicking off in January 2015. Rihanna will become PUMA’s global ambassador for Women’s Training and serve as the PUMA Women’s Creative Director, bringing her styling sensibilities and innovation to PUMA’s collections. Embodying everything that PUMA stands for, Rihanna’s unstoppable spirit, creative energy and prowess both on and off the stage, make her the perfect representation of the PUMA brand.

Through this partnership, Rihanna will be the face of PUMA’s Women’s Training category. Fans can anticipate PUMA and Rihanna taking a fresh, forward thinking and non-traditional approach to sports, fitness and lifestyle – fusing Rihanna’s personality, love of sports, spirit and style into the growing footwear and apparel segment. No stranger to breaking the mold with beauty, fashion and lifestyle trends, Rihanna, with PUMA’s support, will bring her personal touch and creativity to the athletic world.

Rihanna will also assume the role of PUMA’s Creative Director for the category, directly influencing product collections as early as 2015, and working in partnership with PUMA’s Internal Product Creation team. These collections will be designed with the goal of strengthening women in training sessions and beyond, and inspiring confidence in their bodies and themselves – the exact confidence for which Rihanna is so well known and celebrated. As part of her role, Rihanna will work with PUMA to design and customize classic PUMA styles as well as create new styles to add to the PUMA product portfolio.

Speaking about the new partnership with PUMA, Rihanna said: “It’s great to find a brand that celebrates strength and individuality. I couldn't think of a more perfect partner to collaborate with as a creative director. I'm excited for you to see what PUMA and I come up with.”

Rihanna will play a starring role in PUMA’s brand campaign, Forever Faster and be featured along with many of PUMA’s world-class athletes such as Usain Bolt and Sergio Aguero. PUMA and Rihanna will launch several fan activations throughout the partnership around the world such as consumer and retail events, training and fitness related social media content, and product programs.

Bjørn Gulden, CEO at PUMA commented: “Signing Rihanna is a fantastic step for PUMA. Her global profile, her charisma and individuality, her ambition – all these things make her a perfect ambassador for our brand. She also aligns perfectly with the values PUMA strives for: to be Confident, Brave, Determined and Joyful. With a strong portfolio in football, running and motorsport, finding an inspiring partner for women’s training was very important. Rihanna was a natural choice for us. We’re delighted to have her as a partner, and we’re looking forward to what’s to come.”

Adam Petrick, Global Brand & Marketing Director for PUMA said, “Rihanna brings joy to audiences around the world but also ignites and awes. PUMA admires her for never waiting for the next big thing, but more so for driving what happens next - in fashion, style, music and soon to be - sports. We can't wait to empower women worldwide with Rihanna - she demonstrates a body confidence and determination that is the exact representation of the PUMA Woman.”

Anxious to learn more? Follow PUMA and Rihanna’s journey on Instagram (@PUMA and @badgalriri), Twitter (@PUMA and @rihanna) and Facebook (facebook.com/PUMA and facebook.com/Rihanna) and online at www.puma.com and www.rihannanow.com.

 

Media Contact:
Tim Stedman, International PR, PUMA
+49 151 1474 3148
tim.stedman@puma.com

Kristina Fields, Head of Partnership Management, PUMA
617-435-9964
kristina.fields@puma.com

Amanda Silverman
42West
Amanda.Silverman@42West.Net

 

Photo Credits: Robert Ashcroft/ PUMA
Herzogenaurach, Germany, January 14, 2015
PUMA EXTENDS PARTNERSHIP WITH GHANA FOOTBALL ASSOCIATION

PUMA today announced an extension of its partnership with the Ghana Football Association (GFA). Effective immediately, the new contract sees PUMA continue as the technical supplier and official partner to the GFA for a further long term, during which PUMA will continue to supply playing kits, training apparel and equipment to all associated Ghana National Football Teams.  PUMA’s production and distribution of official replica kits and fan merchandise for the GFA on a global level will also be ongoing.

The Global Sports brand has a rich heritage in African Football and has been actively engaged in the continent since 1998.  PUMA has also enjoyed a long and successful relationship with Ghana, partnering with the GFA since 2005.

Christian Voigt, PUMA’s Senior Head of Sports Marketing comments: “We are very happy to extend our partnership with the Ghana Football Association.  African Football is important to PUMA, and the ten years of partnership we have enjoyed with the GFA have seen some great moments – none more so than the Black Stars being a kick away from becoming the first African team to reach a World Cup semi-final, four years ago.  The appetite and passion for football in Ghana is infectious, and this wonderful spirit has endeared the national team to the World.  We are proud to be associated with them and to continue this relationship.  

Kwesi Nyantakyi, President of the Ghana Football Federation said: “Over the past decade, PUMA has excelled in its commitment and support for the Ghana Football Association, and we are very happy this partnership will continue.  PUMA understands African Football and the nature of its teams and they have delivered everything we have asked of them in helping prepare all of the Ghana senior and youth teams to go forward and be successful.  Signing this new contract with PUMA gives us great confidence for the years ahead, kicking off with the 2015 Africa Cup of Nations next week.”

Herzogenaurach, Germany, February 16, 2015
PUMA ACHIEVES FULL-YEAR GUIDANCE

NEW STRATEGIC DIRECTION “FOREVER FASTER” SUCCESSFULLY LAUNCHED

2014 Fourth Quarter Facts

  • Consolidated sales grow to € 751 million, a currency adjusted increase of 6.3%
  • Positive trend in Footwear continues in Q4, up 4.3% currency adjusted
  • Improvement of gross profit margin from 43.2% to 45.0%
  • OPEX increase mainly due to “Forever Faster” marketing campaign
  • EBIT before special items improves to € 11 million compared to € 1 million in Q4 2013
  • Strong rise of net earnings due to special items booked in Q4 prior year
  • Rihanna announced as new PUMA Brand Ambassador

2014 Full Year Facts

  • PUMA’s full-year consolidated net sales increase by 3.3% currency adjusted to around
    € 3 billion
  • Slight improvement of gross profit margin to 46.6% despite adverse currency fluctuations
  • OPEX rise as planned due to “Forever Faster” marketing campaign as well as new sponsoring contracts
  • EBIT reaches € 128 million
  • Net earnings (2014: € 64.1 million; PY: € 5.3 million) and EPS (2014: € 4.29; PY:
    € 0.36) improved strongly; no special items booked in 2014

Bjørn Gulden, Chief Executive Officer of PUMA SE: “The fourth quarter developed as we had hoped, with a solid increase in sales and even stronger improvement in EBIT and net earnings. We are especially pleased to see that we again, for the second quarter in a row, had growth in our footwear sales. Our full-year results are also in line with expectations. We stopped the decline in sales and made progress with all our strategic priorities. We now have a clear positioning, which will be strengthened through increased investment into marketing and a clear use and celebration of our assets. We are further focusing on communicating stories clearly. We have made strides in improving our product and are working with our retailers to further improve the quality of our distribution. Additionally, we have started to improve our IT foundation and operations, to ensure a faster, leaner, and more efficient set up in the coming years. In 2015, we will continue to work towards our mission of becoming the Fastest Sports Brand in the world while further improving our business along all strategic priorities. The addition of Rihanna, as a Brand Ambassador and as one of our creative directors, is a commitment to our increased focus on the female consumer segment, as we truly believe that the "future is female". We know that the turnaround will take time but feel that 2014 was a turning point. We expect 2015 to confirm that we are moving in the right direction.”

 

FOURTH QUARTER 2014

Strong fourth quarter performance

In comparison with last year, consolidated sales in the fourth quarter of 2014 recovered and rose from € 698.3 million to € 750.8 million, which represents a currency adjusted increase of 6.3%. This was driven mainly by a stronger demand in the Americas as well as a considerable upwards trend in Accessories and further recovery in footwear sales.

In the EMEA region, sales increased slightly by 0.6% currency adjusted to € 224.8 million, as economic conditions in some continental European countries remained challenging, while the UK enjoyed a very solid performance.

Revenues in the Americas region increased strongly by 15.0% currency adjusted to € 319.3 million. Solid performances in the USA and Canada and strong growth rates in Argentina, Brazil and Mexico drove this performance.

Sales in the Asia/Pacific region rose slightly by 0.7% currency adjusted to € 206.7 million. While China and India grew, Korea and Japan performed below last year’s levels.

PUMA’s Footwear sales in the fourth quarter improved, up for the second quarter in a row, by 4.3% currency adjusted to € 310.7 million. Apparel sales improved by 3.6% currency adjusted to € 293.0 million, while Accessories saw its sales increase sharply, up 17.1% currency adjusted to € 147.1 million despite adverse market developments in the Golf category.

PUMA’s gross profit margin increased from 43.2% to 45.0% in the fourth quarter of 2014. Lower price reductions supported by a better product mix in the quarter helped to improve the margin in Footwear and Apparel. Footwear gross profit margin increased from 39.5% to 41.6%. Apparel margin rose from 44.7% to 47.1%, while the margin for Accessories decreased slightly from 48.4% to 47.8% impacted by the current weakness within the Golf business.

After four consecutive quarters of decline, operating expenditures in the fourth quarter of 2014 increased as a result of the intensified marketing activities of PUMA. As a consequence – although PUMA maintained its focus on a strict cost management - total OPEX rose by 8.6% from € 306.2 million to € 332.4 million during the quarter. Combined with the increase in sales and the improved gross profit margin, this led to the higher EBIT (before special items) of € 10.6 million. As no special items were recorded in the fourth quarter of 2014 (prior year: € 129.0 million), the Operating Result (EBIT) increased significantly. Earnings per share in the fourth quarter of 2014 came in at € -0.30.

 

FULL YEAR 2014

PUMA’s full-year sales increased 3.3% currency adjusted

Consolidated sales were in line with the guidance for 2014 and increased by 3.3% currency adjusted to around € 3.0 billion, which corresponds to a slight decline of 0.4% in Euro terms, reflecting the currencies headwind registered throughout the year. All regions contributed to growth, posting currency adjusted growth rates in the year.

Sales in the EMEA region increased by 1.3% currency adjusted to € 1.2 billion, where strong performance in the United Kingdom more than offset weaker French and Italian markets.

In the Americas, sales improved significantly by 6.7% currency adjusted to € 1.1 billion thanks to a strong demand particularly from the U.S., Canada, Argentina and Mexico.

In Asia/Pacific, sales rose by 1.9% currency adjusted to € 696 million, as a strong demand from India and China outbalanced a decline in Japan, which was mostly related to the weaker Golf category.

In 2014, Footwear sales decreased due to a weaker first half by 2.4% currency adjusted to € 1.3 billion, while the second half showed growth in the segment. Sales in Apparel rose by 7.6% currency adjusted to € 1.1 billion. Sales in Accessories continued to improve and showed a significant increase of 9.3% currency adjusted to € 586 million.

Sales growth continued in PUMA’s Retail Business

In line with PUMA’s strategy, PUMA continued to optimize its retail network in 2014. While the company continued to open stores with a particular focus on profitable new locations in growth markets, it carried on its program of selective closures of unprofitable stores at the same time. As such, comparable store sales were positive in the year and full-year retail sales rose by 3.9% currency adjusted to € 618 million in 2014, equaling 20.8% of total sales.

Slightly improved Gross Profit Margin

PUMA’s full-year gross profit margin increased slightly from 46.5% to 46.6%, driven by positive margin developments in Apparel and Accessories that were able to more than offset the decline in Footwear. Footwear margin for the full-year stood at 42.6% versus 43.7% in the previous year. Margin in Apparel increased significantly from 48.3% to 49.5%. Accessories gross profit margin also increased from 49.8% to 50.0%.

Marketing efforts drive OPEX

Due to the increased marketing expenses for the „Forever Faster“ brand campaign, the football world cup in Brazil as well as the sponsoring of additional football clubs and athletes, the full-year OPEX increased by 4.9% from € 1,216.9 million to € 1,276.8 million. At the same time, savings were realized in other areas in line with the ongoing strict cost management.

Operating Result (EBIT) before special items in line with guidance

As a consequence of the effects outlined above, full-year EBIT before special items declined from € 191.4 million to € 128.0 million. This corresponds to a 4.3% margin on net sales.

No Special Items in 2014

PUMA’s 2014 results were not affected by any special items, while in the previous year, PUMA recorded € 129.0 million.

Operating Result (EBIT) after special items increased

As a result, PUMA’s EBIT after special items for the full year improved from € 62.5 million to € 128.0 million, equivalent to an increase from 2.1% to 4.3% as a percentage of sales.

Financial Result improved

For the full year, PUMA’s financial result improved from € -8.7 million to € -6.2 million.

Net Earnings / Earnings per share increase

Full-year consolidated net earnings rose from € 5.3 million in 2013 to € 64.1 million in 2014, with earnings per share increasing from € 0.36 to € 4.29.Sales growth continued in PUMA’s Retail BusinessSales growth continued in PUMA’s Retail Business

 

NET ASSETS AND FINANCIAL POSITION

Working Capital position continues to improve

The Group’s significantly declined by 13.8% from € 528.4 million to € 455.7 million.Inventories increased from € 521.3 million to € 571.5 million at the end of 2014, while trade receivables rose from € 423.4 million to € 449.2 million. As per the balance-sheet date, trade liabilities increased from € 373.1 million to € 515.2 million as a result of higher inventories and because of timing of payments.

Cashflow / Capex

PUMA’s Free Cashflow improved from € 29.2 million at the end of 2013 to € 39.3 million at the end of 2014. This was mainly due to lower Working Capital requirements and was achieved despite an increase in CAPEX.

Cash Position improved

PUMA’s year end Cash Position improved to € 401.5 million compared to last year’s € 390.1 million.

Dividend

The Administrative Board will propose a stable dividend of € 0.50 per share for the financial year 2014 at the Annual General Meeting on 6th May 2015.

 

STRATEGY UPDATE

To be the Fastest Sports Brand in the world

In 2013, Bjørn Gulden (CEO) introduced PUMA’s new mission statement: To be the Fastest Sports Brand in the world. The company’s mission not only reflects PUMA’s new brand positioning of being Forever Faster, it also serves as the guiding principle for the company expressed through all of its actions and decisions. Our objective is to be fast in reacting to new trends, fast in bringing new innovations to the market, fast in decision-making and fast in solving problems for our partners.

Strategic priorities

Our strategy encompasses five strategic priorities: the repositioning of PUMA as the World’s Fastest Sports Brand, the improvement of our product engine, the optimization of our distribution quality, increasing the speed within our organization and infrastructure, and renewing our IT infrastructure. In 2014, we continued to make further progress on all our key strategic priorities to ensure that the year marks the start of a turnaround.

In terms of our brand repositioning, August 2014 saw the successful launch of our worldwide Forever Faster brand campaign – the biggest marketing campaign in PUMA’s history. This marked the start of our repositioning as a true sports brand to our consumers and retail partners. The objective of the campaign is to demonstrate that PUMA is back in sports and that our brand has great assets and a distinctive attitude: Brave, confident, determined, and joyful. We achieved this goal by focusing our campaign on customers in 35 countries. In the first three months after the start, our advertising generated 1 billion TV impressions in our target group as well as 31 million online views. The market surveys showed a very positive consumer reception. The launch of this campaign marked the start of a long-term marketing strategy, which will be continued in 2015 and run through the Rio de Janeiro Olympic Games in 2016 and beyond.

To improve our product engine, we initiated key projects to enhance our product designs, develop more innovative technologies and increase the commercial appeal of our product range. The first results have already been implemented for the 2015 collections, and the feedback from our retail partners make us very confident that we are heading in the right direction.

In order to improve the quality of our revenues and distribution, we have developed joint product and marketing programs with our key retailers to showcase our brand in the right retail environment and drive sell-through with our partners. In February 2014, together with our partner Foot Locker USA, we introduced the jointly developed retail concept "PUMA Lab" and successfully rolled it out in the US market. The success of the PUMA Lab has not only improved our business with Foot Locker USA but also generated a positive spill-over effect onto other key retailers in the US marketplace – both with performance and lifestyle accounts. In 2015, we will continue to foster collaborations and launch further product and marketing programs with our most important key accounts in every region.

In 2014, we also continued to optimize our organizational structure and setup by making them leaner and faster. With the finalization of the relocation of our Global and European Retail Organization from Oensingen, Switzerland, to our Headquarters in Herzogenaurach as of September 30th, we completed the last out of our three major consolidation projects in 2014. This relocation followed the closure of our PUMA Village Development Center in Vietnam in May and the relocation of our Lifestyle Business Unit from London to our Headquarters in Herzogenaurach in June. In 2015, we will be focusing on standardizing and optimizing processes between PUMA and its partners. The key projects in this area are the implementation of a sourcing organization to manage global order and invoice flows and the conceptual design of a European trading company to optimize regional flows of goods.

Another strategic priority is the renewal and expansion of our IT infrastructure to create a basis for more extensive optimization measures. In 2015, we will focus on three areas: optimize our basic IT infrastructure, start the implementation of a standard ERP system to support sourcing and trading functions, and set-up platforms to improve the design, development and planning processes. We are very confident that our investments in these areas will lay the foundation for a lean and efficient company in the future.

BRAND AND MARKETING UPDATE

At the end of 2014, we added global cultural icon Rihanna to our roster. Through this new multi-year partnership, Rihanna will serve as a global brand ambassador. She will play a key role in PUMA’s brand campaign Forever Faster, featuring along PUMA’s world-class athletes such as Usain Bolt and Sergio Aguero. From Spring/ Summer 2016 on, she will serve as one of the Creative Directors for PUMA, specially focusing on Women. Rihanna will directly influence our Women’s collections with her fresh, forward thinking and non-traditional approach to sports, fitness and lifestyle. This marks the start of a renewed focus on Women for the PUMA brand. In 2015, we will further underscore our increased focus on female consumers by launching an extended training range, starting with the Pulse XT, which will be endorsed by Rihanna.

Our Autumn/Winter 2014 collection in Lifestyle saw a star reborn, when we reissued the Becker OG, the classic mid top shoe that 17-year old Boris Becker wore during his famous and groundbreaking Wimbledon win in 1985. A timeless silhouette originally made for the tennis court, the Becker OG merges the best of PUMA’s performance heritage and design language.

In Motorsports, Lewis Hamilton of the PUMA-partnered Mercedes AMG Petronas F1 team clinched his second drivers' World Championship ahead of his teammate Nico Rosberg in the season-ending Abu Dhabi Grand Prix. Hamilton wore the PUMA F1 Pro SLW, weighing only 99 grams. It is the lightest Formula 1 shoe that currently exists.

The year 2015 has started very positively for PUMA as the 2015 Africa Cup of Nations proved to be a fantastic stage for our football products with Ivory Coast beating Ghana 9:8 in a thrilling penalty shootout, with both teams being outfitted by PUMA. Led by their captain and PUMA star player Yaya Touré, the “Elephants” put on a brilliant performance to claim their second Africa Cup of Nations title after 1992. On the pitch in Equatorial Guinea, Touré sported the next generation of our evoPOWER football boot, designed to bring Power and Accuracy to a higher level. The innovative shoe was launched at the beginning of this year through a “Head to Head” campaign featuring PUMA key assets Mario Balotelli and Cesc Fàbregas.

In February 2015, a further innovation was launched in our running category. Our most innovative running footwear technology to date, introduced by the World’s Fastest Man, Usain Bolt on New York City’s Times Square: IGNITE. Developed together with BASF over multiple years, IGNITE is revolutionary to the business. PUMA’s best ever, PU foam provides the highest return of energy we have ever created, step-in comfort and long-lasting durability with ForEverFoam. In subsequent seasons, additional styles will be introduced and the IGNITE line will be expanded further within our Running and Training category. In the second half of 2015, we will continue our training and Ignite story with IGNITE XT trainer.

 

OUTLOOK FOR THE FINANCIAL YEAR 2015

After the successful launch of PUMA’s Forever Faster campaign in autumn 2014, PUMA will continue its marketing investments in order to reposition PUMA as the fastest sports brand of the world. The objective of PUMA’s brand repositioning is to increase brand heat and further replace lower tier distribution with higher tier distribution in order to improve sales quality and sell-through.

Together with improvements in the product offering, PUMA expects an increase of its currency-adjusted net sales in the medium single-digit range for the full year 2015, with sales in the first half expected to be flat and growth occurring in the second half. The gross profit margin is anticipated to improve slightly based on lower discounts and a favorable product mix.

For 2015, PUMA is planning further strong investments in the “Forever Faster” marketing campaign as well as in the upgrade of our current IT. We are very confident that our investment in IT will lay the foundation for a lean and efficient company in the future. As a consequence, PUMA’s OPEX will increase while management will continue to put a strong emphasis on strict control of other operating costs.

The recent adverse developments of foreign exchange rates, particularly the strengthening of the US-Dollar versus nearly all other currencies, could lead to a significant negative impact on the reported gross profit margin and the overall reported EBIT and net earnings of the PUMA group.

Because of these negative currency developments, PUMA has already taken and will continue to take countermeasures, which should support a slight increase in reported EBIT and net earnings.

Last year, PUMA has successfully taken the first steps to re-establish the brand in the market place. 2015 will be the year to further enhance and reinforce this brand positioning and to take a further step in getting PUMA back to a path of profitable and sustainable growth.

 

NOTES

Media Relations:

Kerstin Neuber - Corporate Communications - PUMA SE - +49 9132 81 2984 - kerstin.neuber@puma.com

Investor Relations

Beate Gabriel – Finance - PUMA SE - +49 9132 81 2375 – beate.gabriel@puma.com

Notes to the editors

This press release and financial reports are posted on about.puma.com.
PUMA SE stock symbol: Reuters: PUMG.DE, Bloomberg: PUM GY, Börse Frankfurt: ISIN: DE0006969603– WKN: 6969603

Notes relating to forward-looking statements

This document contains forward-looking information about the Company’s financial status and strategic initiatives. Such information is subject to a certain level of risk and uncertainty that could cause the Company's actual results to differ significantly from the information discussed in this document. The forward-looking information is based on the current expectations and prognosis of the management team. Therefore, this document is further subject to the risk that such expectations or prognosis, or the premise of such underlying expectations or prognosis, become erroneous. Circumstances that could alter the Company's actual results and procure such results to differ significantly from those contained in forward-looking statements made by or on behalf of the Company include, but are not limited to those discussed be above.

Photo Credits: Robert Ashcroft/ PUMA
Torino, Italy , March 30, 2015
FIGC AND PUMA SIGN NEW GLOBAL STRATEGIC PARTNERSHIP
NEW CONTRACT ENTAILS DEEPER INTERNATIONAL MARKETING & LICENSING COMMITMENTS

Through this agreement, the FIGC and PUMA will actively work together on a number of projects to grow the image, profile and commerciality of the FIGC on a global level. This will entail shared marketing investment allocated to core areas of focus within the FIGC programme including youth development, women’s football, countering racism and the internationalisation of the FIGC brand.

As PUMA continues to reassert itself as a Global Sport Brand with strong heritage in performance, the FIGC partnership is one of great strategic importance. Dating back more than ten years, PUMA first became the partner of the ‘Squadre Nazionali’ in 2003. This next era will see the partnership continue to expand and instigate greater mutual return to both organisations.

Bjørn Gulden, Chief Executive Officer for PUMA said: “Extending this long standing partnership with the FIGC is extremely important to PUMA and is another key step towards our goal to become the Fastest Sport Brand in the World. The FIGC with all its heritage and class is a major ingredient in our football portfolio and there is a clear vision amongst their new senior management that we share and are enthusiastic to support. The coming years will see a deeper commitment from PUMA to the FIGC and we see great commercial opportunity through a partnership that has continued to grow yet retains great potential.”

Carlo Tavecchio, President of the FIGC commented: “The partnership extension with PUMA represents a very important result for the FIGC. It will bring benefit us greatly both in affirming our brand at an international level and because it will see both organizations committed to developing special projects. The FIGC has defined a 360 development plan that is effective across the National A Team to the youth teams, from women’s football to social responsibility projects. In addressing these ambitious plans, PUMA will be a highly valued partner that we are proud to have with us for a long time.

Photo Credits: Robert Ashcroft/ PUMA
Herzogenaurach, Germany, March 30, 2015
PUMA APPOINTS JOHAN ADAMSSON AS DIRECTOR OF SPORTS MARKETING & SPORTS LICENSING

Sports company PUMA has appointed Johan Adamsson (41) as Director of Sports Marketing & Sports Licensing. In his new position, Adamsson, who has been with PUMA for 14 years, will be responsible for managing and extending PUMA’s portfolio of athletes and sports teams on a national and international level. He succeeds Christian Voigt, who has decided to leave the company. Johan Adamsson is based at PUMA’s headquarters in Herzogenaurach.

The Swedish national holds a degree in Social Science from Lund University in Sweden. He has held multiple positions at PUMA, since he joined the company as International Football Marketing Manager in 2001. Between 2006 and 2010, he was responsible for Marketing in PUMA’s Teamsport Business Unit and became Head of Sports Marketing Teamsport in 2010.

Photo Credits: Robert Ashcroft/ PUMA

Herzogenaurach, Germany, April 22, 2015
PUMA APPOINTS MARTYN BOWEN AS GENERAL MANAGER OF EMEA

Sports company PUMA has appointed Martyn Bowen (51) as General Manager of EMEA with immediate effect, after General Manager Europe Volfango Bondi decided to leave the company to pursue other opportunities.

Martyn Bowen previously held the position of PUMA’s Regional GM Eastern Europe/ Middle East/ Africa/ India (EEMEA). As the GM of EMEA, he will now be responsible for the management of both regions (Europe and EEMEA), which will help to further increase efficiency and a seamless alignment of the respective sales teams. This is in line with PUMA’s company mission to become the fastest sports brand in the world.

Martyn Bowen joined PUMA in 1995 and has held various positions since then, such as Export Manager Easter Europe, Area General Manager Easter Europe and General Manager Austria. The British national and former athlete holds a degree in Latin, Greek and Philosophy from the University of Oxford. He will be based in Herzogenaurach, reporting to CEO Bjørn Gulden.

Photo Credits: Robert Ashcroft/ PUMA

Herzogenaurach, Germany, April 24, 2015
PUMA TO FEATURE SESAME STREET CHARACTERS ON SHOES, SHIRTS AND BAGS

Under the terms of the two-year, worldwide deal, PUMA will produce four co-branded collections that celebrate the natural synergies of entertainment and sport. Sesame Street product ranges will span all age groups starting with toddlers.

Reinhard Dischner, General Manager Business Unit Fundamentals and Kids at PUMA, said: "Sesame Street has been popular for several generations and kids in over 150 countries around the globe love its characters as much as they love PUMA products. Sesame Street helps kids learn, grow and reach their full potential, always in a playful manner. And in PUMA Kids products you can always play. I call it the perfect match!"

"Our mission is to help kids grow smarter, stronger, and kinder, and our content encourages healthy habits”, said Risa Greenbaum, Assistant Vice President, International Licensing, Sesame Workshop. ”We are thrilled to work with PUMA and offer families more ways to incorporate their favorite Sesame Street characters into their active lives.”Joachim Knödler, Managing Director CPLG Germany, which has the licensing rights of Sesame Street for Germany, Austria and Switzerland, said: “We are proud that we have been able to connect a high value sports and lifestyle brand such as PUMA with the worldwide well-known property Sesame Street!”The first PUMA Sesame Street co-branded collections will launch in Spring/Summer 2016 and will be available from January 2016 through a vast retail distribution network that will include PUMA stores, PUMA ecommerce sites, department stores, sports retailers and specialist footwear stores and independents.

Photo Credits: Robert Ashcroft/ PUMA
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