The first collection by Kering Eyewear - PUMA’s “Collezione Uno” - will be made up of optical frames and sunglasses, which will be divided into three main segments: Performance, Active and Sportstyle. Each product segment is characterized by style, form and combines technology and color, which makes the products distinctive and functional for specific needs and situations. In line with PUMA’s new brand positioning as a sports brand, the range will also include eyewear items specifically designed for Running and playing Golf. The first collection will be officially presented in July 2015.

“A new phase in the world of eyewear is beginning for us,” said Bjørn Gulden, CEO of PUMA. “PUMA’s new brand positioning as a true sports brand means that we need to offer eyewear collections that are able to go beyond the expectations of athletes and to guarantee better performance thanks to continuous quality research and innovation. I would also like to thank Charmant for the good cooperation in the last 12 years. They have not only created a solid foundation for our Eyewear business, but also significantly expanded it and established PUMA Eyewear as a successful brand.”

Roberto Vedovotto, President and CEO of Kering Eyewear said: “Being a brand leader in sportswear and a strategic brand for the Group, PUMA offers us the extraordinary opportunity of developing an extremely innovative product with notable growth potential, especially in the performance segment, where the technology that we are able to develop will give us a unique positioning in the sports eyewear sector”.

The eyewear collections continue to be available in the PUMA Stores, including PUMA’s Online Store as well as retail stores.

CURRENCY EFFECTS CONTINUE TO HAVE NEGATIVE IMPACT ON MARGINS

2015 Second Quarter Facts

• Currency adjusted sales up by 7.6% to € 772.7 million (+18.5% reported)
• Strong growth in Footwear driven by Running and Training categories
• Gross profit margin stable at 46.7% despite adverse currency effects
• OPEX increase based on additional marketing activity, IT investments and currency impacts
• Operating income (EBIT) comes in at € 6.8 million
• Tretorn trademark rights sold
• PUMA-sponsored national football team of Chile wins Copa América title for the first time

2015 Half Year Facts

• Currency adjusted sales grow across all regions by 5.9% to € 1,594.1 million, exceeding expectations
• Gross profit margin falls by 90 basis points to 46.8% due to currency effects
• OPEX rise by 19.1% to € 708.5 million due to higher marketing activities, retail expansion and IT investments as well as adverse currency impacts compared to last year
• Operating income (EBIT) amounts to € 44.3 million
• Earnings per share come in at € 1.44
• Innovative IGNITE running product platform shows good sell-through

Bjørn Gulden, Chief Executive Officer of PUMA SE: "We saw a continued positive development of our sales in Q2. This was again driven by a strong growth in Footwear. We have said that growth in footwear is key for us to turn the company around and feel that the investment in new and innovative products is starting to pay off. The negative effect of currencies is continuing to hurt our gross profit margin and increase our operational expenses, thus reducing our earnings. We are of course working to offset the impact of this by gradually increasing sales prices in markets that are hurt by the negative effects, and we are, when possible, moving some of the sourcing to the local markets. These measures are currently not enough to totally offset the loss in reported gross profit margin. Despite the pressure on margins, we have decided to continue our investments in marketing, IT, and in the modernizing of our retail network. We believe these investments are needed to regain the strength of the brand and to ensure long-term growth for the company. We have a vision of becoming the fastest sports brand in the world and know that we have to invest now to achieve our goal long term. Furthermore, we confirm our financial guidance from Q1.”

Second Quarter 2015

Currency adjusted sales exceed expectations

In the second quarter of 2015, PUMA’s consolidated sales improved by 7.6% currency adjusted to € 772.7 million and were above our expectations. This positive development was primarily driven by the growth in Footwear sales across all regions. In reported terms, consolidated sales rose a strong 18.5%.

Growth in all regions

Second-quarter sales for the EMEA region (Europe, Middle East and Africa) rose by 3.9% currency adjusted to € 270.5 million. The development was particularly encouraging in Germany, France and Turkey, while Italy and Switzerland suffered a decline on high comparables (last year’s World Cup replica sales not repeating this year).

Sales performance in the Americas was stronger in the second quarter with growth in both, North and Latin America. Currency adjusted sales increased by 11.6% to € 328.4 million. In particular, Argentina and Mexico showed above average sales developments.

Asia/Pacific (APAC) showed a satisfying second-quarter performance, with sales rising by 6.2% currency adjusted to € 173.8 million. The increase was primarily attributable to good performances in China and India, each reporting double-digit growth.

Footwear leads product segment performance

Sales in Footwear increased for the fourth quarter in a row, rising by 16.2% currency adjusted to € 358.8 million. This development was mainly driven by the Running, Training and Sportstyle categories and especially the PUMA IGNITE product platform.

Apparel sales were broadly flat at € 263.3 million. This is against high comparables in the second quarter 2014, when sales in replica jerseys driven by the FIFA World Cup were particularly strong.

Accessories grew by 3.6% currency adjusted to € 150.7 million and developed in line with our expectations.

Gross profit margin stable

Gross profit margin was stable at 46.7%, despite significant negative currency effects. The footwear gross profit margin decreased slightly from 42.7% to 42.3%, the apparel margin rose from 48.2% to 50.7% and the margin for accessories fell from 52.4% to 50.0%.

Higher OPEX in line with expectations

Operating expenditures (OPEX) - significantly impacted by adverse currency effects - saw an increase of 20.4% in reported terms, rising to € 357.4 million. During the quarter, we continued to invest heavily in marketing activities to strengthen PUMA’s positioning as the Fastest Sports Brand in the World. The main cause for the increase was higher media spend and the partnerships with global sports and pop culture icons Rihanna and Arsenal, which both commenced in the second half of 2014. The opening of new retail stores at selected locations and investing into the IT-infrastructure also contributed to the increase of OPEX in the second quarter. In constant currencies, the increase in OPEX amounts to 10.6% versus last year.

Operating income (EBIT)

The rise in operating expenses led to a decrease of operating income (EBIT) from € 12.6 million to € 6.8 million.

Financial result

In the second quarter, the financial result declined from € -1.3 million last year to € -5.7 million this year due to unfavorable impacts from currency conversion.

Net earnings

Net earnings came in at € -3.3 million in the second quarter, resulting in earnings per share of € -0.22.

First Half-Year 2015

In the first half-year 2015, consolidated sales increased by 5.9% currency adjusted to € 1,594.1 million and were above our expectations. In reported terms, the improvement is significantly higher with an increase of 15.7%.

All regions contribute to sales growth

In the EMEA region, sales rose by 1.8% currency adjusted to € 612.2 million. Germany, France, Spain and Turkey showed a positive development in Europe, while the Middle East and Africa regions continued their solid performance.

In the Americas, sales grew by 8.7% currency adjusted to € 617.4 million. Argentina and Mexico stood out within the Latin American region, driving double-digit growth, while North America was growing at a mid-single-digit pace with acceleration in the second quarter.

Asia/Pacific also developed well, with an increase of 8.6% currency adjusted to € 364.5 million. Performances in China and India were strong, while sales in Japan were stagnant and Korea declined in a difficult economic environment.

Footwear supported by IGNITE

In terms of product segments, Footwear was positively impacted by the successful launch of the PUMA IGNITE product platform, leading to an overall increase of 11.7% currency adjusted to € 736.9 million. The Running, Training, and Football categories were the main growth drivers. Apparel also grew with sales amounting to € 543.1 million (+2.7%), while Accessories decreased slightly to € 314.1 million (-0.9%).

PUMA’s retail sales grew

Supported by the increased number of stores operating (44 more stores compared to one year ago; 4 less than at the end of 2014), retail sales increased by 9.3% currency adjusted to € 322.2 million in the first half of 2015. This represented 20.2% of total sales compared to 19.6% last year.

Gross profit margin impacted by adverse currency effects

PUMA has already taken and will continue to take countermeasures to offset the negative currency impact on the gross profit margin. The effect of these measures helped us to limit the impact on the gross profit margin to 90 basis points for the first half-year, as the second quarter gross profit margin was stable. However, PUMA cannot currently fully neutralize the impact of volatile currencies, as prices can only be adjusted very carefully in order not to impact consumer demand. Furthermore, in some countries, the costs of hedging outweigh its financial benefits, or in some instances, currency hedging is not possible at all. In addition, we are considering to source products more in local markets in order to reduce the exposure to foreign currencies in these markets. PUMA’s gross profit margin for the first half-year went down by 90 basis points to 46.8%. The footwear gross profit margin decreased from 43.4% to 42.6%, apparel margin was largely stable at 50.7% and the margin for accessories decreased from 50.9% to 49.8%.

Continued higher OPEX due to heavy marketing activities

PUMA’s operating expenses (OPEX) increased by 19.1% to € 708.5 million, as negative currency effects continued to have an impact and the company continued its marketing activities. Opening up new stores and investing into IT-infrastructure also contributed to the rise in OPEX. At the same time, PUMAs management continued to put a strong emphasis on strict control of other operating costs. In constant currencies, the increase in OPEX amounts to 9.7% versus last year.

Operating result (EBIT)

Operating income was down by 37.7% to € 44.3 million in the first half 2015, impacted by the negative currency effects already described.

Financial result

The financial result was almost stable at € -4.8 million compared to € -4.5 million in the first half year of 2014.

Net earnings / earnings per share

Half-year consolidated net earnings came in at € 21.5 million, representing earnings per share of € 1.44 compared to € 2.66 in the prior year.

Net Assets and Financial Position

Increase in inventory and trade receivables broadly aligned with sales growth

To ensure product availability and support sales growth as well as a higher demand from new stores, inventories increased by 20.6% to € 704.5 million. This represents a currency adjusted increase of 13.4%. Trade receivables went up by 13.1% to € 523.8 million, broadly in line with reported sales growth. Trade payables were at € 557.9 million, rising 27.6% compared to last year´s figure. In total, working capital rose 7.3% to € 640.0 million.

Cashflow / Capex

As a consequence of the higher working capital requirement, the free cash flow before acquisitions was at € -167.8 million compared with € -69.7 million for the same period last year.

Cash and cash equivalents

PUMA´s cash and cash equivalents went up from € 300.0 million to € 337.9 million, while borrowings increased due to the higher working capital requirements as part of PUMA’s short term financing activities.

Tretorn

PUMA sold trademark rights of Tretorn

Continuing our focus on our core categories under the PUMA and COBRA brands, we have divested of our industrial property rights of the Tretorn subgroup, which include trademark rights, patents and designs. In addition, the related operating business was sold and the respective entities were excluded from the scope of consolidation accordingly. Due to the very small size of the Tretorn business with respect to sales, profit and net assets, these transactions had no material impact on the results and financial position of the PUMA group.

Brand and Product Update

Underlining our strong position in Teamsport, PUMA achieved a great visibility at both the Copa América in Chile and the FIFA Women’s World Cup in Canada. At the Copa América, PUMA partnered host nation Chile crowned their stellar performance throughout the tournament with their first continental trophy. The PUMA team secured their triumph with a penalty shootout over archrival Argentina and its PUMA star Sergio Agüero, who was amongst the tournament’s best goal scorers with three goals. Agüero’s run of success follows an outstanding English Premier League 2014/15 season, finishing as the top scorer with 26 goals. In Germany, Bundesliga’s top scorer list was led by PUMA player Alexander Meier of Eintracht Frankfurt with 19 goals. At the FIFA Women’s World Cup, PUMA star Marta made the headlines by becoming the all-time leading scorer of Women’s World Cup history, while Germany’s Célia Šašić finished the tournament as the top goal scorer with six goals. Together with the three participating PUMA teams Cameroon, Ivory Coast and Switzerland, more than 50 PUMA players contributed to a strong on-pitch presence for PUMA.

Both the Copa América and the FIFA Women’s World Cup in Canada served as a great stage for the introduction of PUMA’s innovative football boot evoSPEED SL. The newly revealed boot is PUMA’s lightest match boot to date thanks to a super light and almost translucent textile upper material. Whilst maintaining the necessary stability, the low weight PUMA SPEEDFRAME adds to the overall lightweight theme of the evoSPEED SL. Designed to give footballers a new game advantage enhancing speed and agility, the evoSPEED SL is worn on pitch by some of the world’s best players including Sergio Agüero, Marco Reus, Radamel Falcao, Marco Verratti, and Antoine Griezmann.

At the end of May, our top football club Arsenal FC became the most successful club in the history of the English FA Cup with a record of 12 wins by outplaying Aston Villa to win 4:0 in the Final. Two weeks later, we launched the much anticipated 2015/16 Arsenal home kit for the second year of our partnership. The kit combines a modern approach to materials with a traditional silhouette and was launched through a live show at the Emirates Stadium by club legend and PUMA ambassador Thierry Henry.

In our Running and Training category, we built on the successful introduction of our revolutionary running technology IGNITE and continued to develop the IGNITE platform with the launch of IGNITE PWRCOOL. PWRCOOL is PUMA’s innovative cooling technology designed to keep the body at an optimal temperature to preserve energy and is incorporated into a complete collection of thermo-regulated apparel and Footwear designed with CoolCELL: highly functional materials that draw sweat away from the skin while anatomically placed air flow features offer superior temperature regulation. PUMA’s long history of working with Jamaican athletes such as the Fastest Man in the World, Usain Bolt, and Olympic medalist Hansle Parchment, provided the perfect conditions to test PWRCOOL as part of the development process.

In early May, COBRA PUMA GOLF athlete Rickie Fowler powered his way to a stunning victory at The Players Championship in Ponte Vedra Beach, Florida, with the greatest finish in the 34-year history of the event. Fowler was decked out in PUMA Golf apparel and equipped with his COBRA Golf clubs. With this signature style and world class performance, Rickie Fowler continues to reinforce COBRA PUMA GOLF’s message of game enjoyment coupled with excellence.

Strategy Update

The first half of this year has shown that PUMA is well under way in improving its product engine. Our stronger sales performance, especially in Footwear underlines the increased attractiveness of our products. With our successful product initiatives in the Spring/Summer season we have underlined PUMA’s mission of becoming the Fastest Sports Brand in the World.

One of the important initiatives was the launch of our new running technology IGNITE in Q1. IGNITE has delivered very solid sell-in and sell-through performance in both Wholesale and own Retail. In the second quarter, we have further nurtured this product platform with the introduction of IGNITE PWR COOL.

In Teamsport, we are claiming back territory with our two footwear platforms evoSPEED and evoPOWER, which we continue to support with new designs, materials and innovations such as the newly launched EvoSPEED SL, which only weighs 103 grams. Both platforms have been prominently featured in our marketing campaign this year and delivered high sell-through across geographies.

PUMA and Kering Eyewear signed an eyewear partnership agreement for optical frames and sunglasses to be launched in Spring/Summer 2016. These will be divided into three main segments: Performance, Active and Sportstyle. In line with PUMA’s focus on sports performance, the range will also include eyewear items specifically designed for Running and Golf.

We have continued to strengthen the PUMA brand with ongoing marketing investments and enhanced marketing communication. Our campaign in the first half of this year has focused on showing our athletes and products in action.

In the second quarter, we have started featuring our newest brand ambassador Rihanna prominently through an in-store marketing campaign focusing on the season’s female training styles. With this campaign we have affirmed our strong commitment to women athlete consumers. Rihanna is an ideal brand ambassador admired by women across the world, thanks to both her personality and iconic style. While she is already generating positive PR buzz for PUMA, Rihanna will be at the center of our ongoing marketing campaign over the upcoming months. In a television commercial as well as online and other offline media she will feature our IGNITE XT training shoe and other commercial products. Rihanna is currently working closely with our design teams. While the first Rihanna-inspired styles are already being launched in the second half of 2015, her own collection will be in stores in 2016.

The new in-store concept for PUMA’s own retail was first revealed in our full price store in Herzogenaurach earlier this year. Since then further stores have been opened, including Hong Kong, Turkey and Mexico. In the new PUMA stores we can better tell our product stories, reveal the technologies behind them and strengthen PUMA’s positioning as a sports brand. All new and refurbished stores are showing above average performance and an increased share of footwear sales.

Outlook for the Financial Year 2015

The positive sales development registered in the first half-year 2015 came in above our expectations. Nonetheless, we still continue to expect an increase in the medium single-digit range for full-year currency-adjusted net sales. For the second half of 2015, we anticipate higher sales growth in Q4 than in Q3.

However, as already expressed in the release of the first quarter results, the adverse developments of foreign exchange rates since the beginning of the year, particularly the strengthening of the US Dollar versus nearly all other currencies, had a significant negative impact on PUMA’s reported gross profit margin. PUMA has already taken and will continue to take countermeasures, but the impact will not fully offset the negative currency impact on the gross profit margin. Therefore, we still expect a drop in the gross profit margin for the full year in a range of 100 to 150 basis points versus last year (2014: 46.6%).

In 2015, PUMA will continue to invest strongly in marketing to further enhance and reinforce its new brand positioning. The investments in the upgrade of PUMA’s current IT-infrastructure and the extension of our own retail store network will also continue. This will result in an increase in OPEX that will be further impacted by negative currency effects. At the same time, PUMA’s management will continue to put a strong emphasis on strict control of other operating costs.

Based on the business development in the first half-year 2015, we reiterate our expectation that adverse currency effects will continue to impact our gross profit margin, OPEX and EBIT. At the current exchange rate levels and thanks to the countermeasures, that we have already implemented, we reiterate our expectation for a full-year EBIT in a range between € 80 million and
€ 100 million, with net earnings impacted accordingly. 

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.

The new away shirt features an Italian flag inspired sublimation print stripe that reaches all the way from the collar to the hem, with a 3D framed FIGC badge being bedded into the stripe to complete the look. The tailored blue collar adds a nice contrast to the white base colour of the shirt. Further details include the blue mesh form stripe inserts on the shoulders, and the blue PUMA logo on the chest. The official PUMA font, which is exclusively designed for the FIGC offers a finishing touch to this new shirt.

As with the official FIGC home shirt, the new away shirt features PUMA’s performance enhancing ACTV technology. The ACTV tape is placed in strategic positions on the shirt to fulfil different functions, supporting the body’s physiological performance by cooling it in hot conditions and heating it in cool weather.  PUMA’s dryCELL technology further improves the comfort as it wicks moisture away from the skin’s surface to keep the wearer dry.

Torsten Hochstetter, Global Creative Director at PUMA said, “The new Italy away kit was created with a lot of attention to detail. Strong Italian cultural influences inspire the design, there is such richness in the heritage of Italian football and we had a lot to work with.  We are proud of the end result and look forward to a big event in France next summer.  We wish the Italian team well for the remainder of their qualification.”

Carlo Tavecchio, President of the FIGC commented, “We would like to thank PUMA that will tomorrow make its debut with our National Team, and then be provided to all our youth, women’s futsal and beach soccer teams.  The national team is the sporting symbol of our country's best known and appreciated players that are celebrated across the world, and the flag in the centre of the jersey will be another means to promote the image of Italian football and the Italian system. PUMA remains a partner of great value for the FIGC."

The new Italy away shirt (with and without the ATCV technology) and a new collection of matching fan wear is now available to buy on puma.com/Italy

International Media Contacts:

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

FIGC
Paolo Corbi, Capo Ufficio Stampa FIGC
+39 335 7636050
p.corbi@figc.it

Daniela Molin, who has more than 20 years of product management experience in the sports industry, started her career at PUMA in 1996. Since then, she has held several positions within the company’s Accessories business. As Senior Head of Product Management Accessories, she has contributed significantly to the positive development of the Business Unit over the recent years and will continue to further expand PUMA’s market position in this important segment. She will be based in Herzogenaurach, reporting to CEO Bjørn Gulden.

With Philippe Le-Bretton, PUMA further strengthens its management team in the Asian Pacific market. Le-Bretton has been with PUMA since 2007 and looks back on almost 20 years of experience within the sports and fashion industry with brands such as Lacoste Accessories (Licence of Samsonite) and Longchamp. Before his role as General Manager Accessories and Licensing, he held leading positions at PUMA such as Head of Sales for PUMA’s APAC region. Le-Bretton will be based in Singapore, reporting to CEO Bjørn Gulden.

Asafa Powell will become an important ambassador for the PUMA brand in an Olympic year and beyond.  He will feature in both global marketing activations promoting Running Training product lines and brand campaigns in the lead up to the 2016 Olympics.  This partnership will also see PUMA working with Powell to design a ‘Sub-10 King’ line of sportswear and spikes.

Speaking about the new partnership with PUMA, Asafa Powell said, “PUMA has played a huge role in Jamaican Track & Field throughout my career - supporting the high school programme that fosters young athletes, partnering with the JAAA and JOA and elite athletes such as Usain.  It’s a brand I’ve been very familiar with throughout my career and their longstanding commitment to Jamaican athletics is key as we continue to build and work to maintain our recent successes.  They understand Jamaican culture, history, people and also the sport that this country loves, and I am very happy to be working with them.”

Pascal Rolling, PUMA’s Head of Sports Marketing for Running commented, “Having Asafa as part of our team here at PUMA is great news for us.  He has played such an important role in Jamaican track and field for more than a decade, demonstrating a consistently high level of performance throughout his sprinting career which is a great testament to a great man. He inspires those around him, is an excellent role model and will bring great value to PUMA in the years ahead.”  

Asafa Powell has run the most sub 10 second 100M sprints in the history of track and field. The Commonwealth, World Championship and Olympic medalist has dipped below the 10-second mark 93 times and was the first Jamaican to win the IAAF Sportsman of the Year.  Powell, who clocked the first sub 10 second time of the 2015 track season, was the first Jamaican to ever hold the world record for the 100m dash, with times of 9.77 and 9.74.

To present the outfit specifically designed for the COP21, PUMA brought on board an ambassador: Luc Abalo, right winger of the French national squad and of PSG Handball, double handball world champion. “It is with great pride that I wear these clothes designed by PUMA for the UN Climate Change Conference. Protecting the environment is essential for the future of our planet, and I am delighted to be the PUMA ambassador for this important cause,” the French handball player underlined.

Bjørn Gulden, Chief Executive Officer of PUMA SE said: “Becoming an official partner of COP21 was a logical step for PUMA given our on-going commitment to environmental protection. For us, it is essential to contribute to the search for effective solutions to limit global warming to 2°C”.

GROWTH IN ALL PRODUCT CATEGORIES / POSITIVE TREND IN FOOTWEAR CONTINUES

2015 Third Quarter Facts

• Reported sales up by 8.4% to € 914 million (+3.1% currency adjusted)
• Growth in Footwear driven by Running and Training category
• Gross profit margin down 50 basis points to 45.8% due to adverse currency effects
• OPEX increase due to marketing/retail activity, IT investments, and currency impacts
• Operating result (EBIT) comes in at € 41 million
• First appearance of Rihanna in PUMA TV ads and first Rihanna inspired footwear launch
• Second wave of Forever Faster marketing campaign focuses on Training featuring IGNITE XT and PUMA brand ambassadors
• PUMA athlete Usain Bolt wins three gold medals in Beijing, underlining PUMA being the Fastest Sports Brand in the World

2015 Nine Month Facts

• Reported sales grow by 12.9% (+4.9% currency adjusted) to € 2,509 million, in line with expectations
• Gross profit margin falls by 80 basis points to 46.4% due to currency effects
• OPEX amount to € 1,090 million due to higher marketing activities, retail expansion, and IT investments as well as adverse currency impacts
• Operating result (EBIT) amounts to € 85 million
• Earnings per share come in at € 2.77
• Performance products especially in Running and Training have continued to show good sell-through

Bjørn Gulden, Chief Executive Officer of PUMA SE:

“PUMA’s sales in the third quarter developed as expected with growth in all product categories. I am happy to see that our footwear category has increased for the fifth quarter in a row. I am especially pleased to see that also the sell-out at retail to the end consumer is continuously improving in all categories. The launch of the first PUMA BY RIHANNA shoe, the "Creeper”, has been extremely successful and most retailers have sold out within hours or days. We have generally seen a very positive development in our Women's business and we will put even more focus on the female consumer going forward. The continued volatile currency trends in some markets and the weakness of the Euro, especially towards the US Dollar, continues to put pressure on gross profit margin, OPEX, and net earnings.  We have taken and will continue to take countermeasures but, as already indicated in the last two quarters, we cannot fully offset these negative impacts on our earnings. Good feedback from retailers, better sell-out and a solid order book validate our outlook for the fourth quarter and allow us to confirm our full-year guidance.“

Third Quarter 2015

Currency adjusted sales in line with expectations

In the third quarter of 2015, sales developed as anticipated: PUMA generated consolidated sales of € 914.4 million, representing an increase of 3.1% currency adjusted. In reported terms, the growth versus last year was 8.4%.

Americas outperform EMEA and Asia/Pacific region

In the third quarter, sales in the EMEA region (Europe, Middle East, and Africa) declined slightly by 3.6% currency adjusted to € 375.7 million. This result compares against high prior year figures, when last year´s performance was positively impacted by the Arsenal launch in the third quarter and included sales of Tretorn (the trademark rights were sold in the second quarter 2015). Without these effects, sales in the EMEA region would have been flat in the third quarter.

Growth in the Americas continued, with North and Latin America both showing strong performances, with sales up 10.8% currency adjusted to € 325.1 million. The United States were one of the key growth drivers with sales increasing double-digit.

In Asia/Pacific (APAC), sales were up 5.0% currency adjusted to € 213.6 million. While China and India showed substantial growth within the region, sales in Korea declined.

Performance products drive sales growth in all product segments

Footwear continued to grow as in the last quarters and is the main driver of PUMA’s total increase in net sales: Sales of € 408.4 million represent a rise of 3.5% currency adjusted. This development is mainly due to the growth of our Running and Training category with the IGNITE and Descendant product platforms.

In the Apparel segment, the sales growth of 2.5% currency adjusted to € 346.9 million was mainly attributable to the success of the Training products.

Sales with Accessories went up 3.7% currency adjusted to € 159.1 million, supported by strong sales in Europe and North America.

Gross profit margin impacted by currency effects

At 45.8%, gross profit margin fell short of last year´s figure by 50 basis points, due to negative currency effects impacting cost of goods sold. The footwear gross profit margin decreased from 41.9% to 41.2%, the apparel margin rose from 49.6% to 49.8% and the margin for accessories fell from 50.3% to 49.1%.

OPEX in line with expectations

Operating expenditures (OPEX) amounted to € 381.9 million in the third quarter. This represents an increase of 9.3% in reported terms versus the third quarter in 2014. As in previous quarters, OPEX was again impacted by negative currency effects, while PUMA continued to invest in marketing activities to further strengthen the brand´s positioning as the Fastest Sports Brand in the World. Ongoing campaigns as well as an increased number of own retail stores in operation also contributed to the higher OPEX. At constant currencies, the increase in OPEX is limited to 4.3% versus last year, reflecting tight underlying cost control.

Operating result (EBIT)

At € 41.1 million, the operating result was 11.2% below the last year´s figure.

Financial result

Unfavorable differences from currency conversions continued to weigh on the financial result, which came in at € -5.1 million.

Net earnings

Net earnings of the third quarter amounted to € 20.0 million (compared to € 28.9 million in the third quarter last year), resulting in earnings per share of € 1.34 (compared to € 1.93 last year).

Nine Months 2015

In the period from January to September 2015, consolidated sales developed in line with our expectations, rising by 4.9% currency adjusted to € 2,508.5 million. In reported terms, the increase is significantly higher at 12.9% as major currencies, in particular the US Dollar and the Chinese Renminbi, strengthened against the Euro.

Americas particularly strong

In the EMEA region, sales were flat at € 987.9 million, as stronger sales in Germany and Poland could not compensate for declines in other markets such as Switzerland and Benelux.

The Americas showed the highest growth among the regions, with both North and Latin America contributing to the increase of 9.4% currency adjusted to € 942.4 million. Within Latin America, Argentina as well as Mexico stood out with a solid double-digit growth.

Sales in Asia/Pacific were also strong, rising 7.2% currency adjusted to € 578.2 million. This increase was supported by the positive development in China and India, while sales in Japan were more muted.

All product segments contribute to growth

Footwear was the best performing segment in the first nine months, showing an increase of 8.6% currency adjusted to € 1,145.3 million. The Running and Training and the Teamsport categories supported this good result, reflecting the relevance of PUMA´s strategy to focus on performance.

Apparel rose 2.6% currency adjusted to € 890.0 million, positively impacted by the development of Training products. Accessories increased slightly by 0.6% currency adjusted to € 473.1 million.

PUMA’s retail sales increase in absolute terms and on a comparable store basis

PUMA increased the share of retail sales in total net sales from 19.5% to 20.4%. In absolute terms, retail sales rose to € 510.9 million (+9.5% currency adjusted). This result was supported by improved sales on a comparable store basis as well as an increased number of retail stores operating (33 more stores compared to one year ago).

Gross profit margin impacted by adverse currency effects

Again, PUMA’s gross profit margin for the period was strongly impacted by negative currency effects. At 46.4%, it fell short of last year´s result by 80 basis points. The footwear gross profit margin decreased from 42.9% to 42.1%, apparel margin was stable at 50.4% and the margin for accessories decreased from 50.7% to 49.6%. PUMA will continue to take countermeasures such as selective price increases to secure profitability, but such adjustments are to be done carefully in order not to impact consumer demand. Furthermore, in some countries, the costs of hedging outweigh its financial benefits, or in some cases, currency hedging is not possible at all. In addition, we are aiming to reduce such exposure to volatile currencies by increasing the share of locally sourced products in some of the most impacted markets.

OPEX increase as a result of strong marketing and retail activities

In the first nine months of 2015, operating expenses (OPEX) amounted to € 1,090.4 million, a 15.5% increase in reported terms. This rise stems from unfavorable currency effects as well as strong marketing activities including media investments and sponsorships of brand ambassadors. Opening up new stores and investing into IT infrastructure also contributed to the development. At constant currencies, the increase in OPEX is limited to 7.8% versus last year, as PUMA continued to put a strong emphasis on strict control of other operating costs.

Operating income came in at € 85.4 million compared to € 117.4 million in the previous year.

Unfavorable differences from currency conversions weighed on the financial result, which fell to
€ -9.9 million. These effects were in particular related to Latin American countries and Turkey.

Net earnings for the first nine months came in at € 41.5 million compared to € 68.6 million in the previous year, representing earnings per share of € 2.77 (1-9/2014: € 4.59).

Net Assets and Financial Position

Increase in working capital to serve higher demand

To support sales growth and serving the higher demand from new retail stores as well as ensuring product availability, inventories increased by 20.2% to € 689.5 million. Trade receivables went up by 3.3% to € 565.6 million. Trade payables were at € 509.0 million, rising 10.9% compared to last year´s figure. In total, working capital rose 11.8% to € 711.4 million.

As a result of the higher working capital requirements, the free cashflow went down to € -248.0 million for the nine-month-period 2015 compared to € -114.4 million as of September 30, 2014. The free cashflow was also impacted by higher CAPEX, which grew from € 47.8 million last year to
€ 54.6 million. This reflects our increased investment in IT and retail stores.

Cash and cash equivalents

Cash and cash equivalents were also impacted by the higher working capital requirements and decreased by 12.1% to 269.6 million, while borrowing increased as part of PUMA’s short term financing activities.

Brand and Product Update

In our Running and Training category, we benefitted from excellent athlete and team performances at the 2015 IAAF World Championships in Beijing with 18 podium positions for PUMA sponsored athletes and teams. The World’s Fastest Man Usain Bolt once again proved his status as the greatest athlete of all time with triumphs in the 100m, 200m and 4x100m relays, extending his record-breaking personal haul of IAAF World Championships gold medals to 11. The stellar performances of the Jamaican Team, which finished second in the medals table after Kenya, as well as the performances of the other PUMA teams including the Bahamas, Cuba, Grenada, Cayman Islands, Switzerland and the Dominican Republic, secured a strong brand visibility of PUMA throughout the competition.

The great achievements of our athletes in Beijing’s National Stadium came only shortly after the launch of our second major Forever Faster brand campaign, which had a dedicated focus on Training. Asking the question “What are you training for?” the campaign was brought to life through the unique training stories of PUMA’s most elite ambassadors such as Usain Bolt, Rihanna, Sergio Agüero, Arsenal Football Club, and the Cuban National Boxing team. The films intimately capture our athletes’ motivations and tactics to constantly improve through training. Underpinning this campaign was PUMA’s latest innovative footwear offering within the IGNITE franchise: the IGNITE XT. This high intensity training shoe’s responsive design maximizes energy and movement throughout high intensity workouts.

In our Teamsport category, we recently launched the latest iteration of our eye-catching Duality football boots, continuing the theme of two distinct coloured boots in one pair. This was applied to PUMA’s two football boot families, evoPOWER and evoSPEED, and worn by PUMA stars such as Cesc Fàbregas, Sergio Agüero, Marco Reus, and Antoine Griezmann. Furthermore, PUMA introduced the new bright blue colourway of its lightest football boot to date, the evoSPEED SL. It is worn on pitch by PUMA stars including midfielder Marco Verratti, who helped to secure the qualification of the PUMA partnered Italian national team for the 2016 UEFA European Championship next year in France. PUMA teams Czech Republic, Slovakia, Austria and Switzerland have also qualified.

In our successful Motorsports category, PUMA continues to be a leading supplier with its outstanding Mercedes AMG Petronas and Scuderia Ferrari F1 teams. Mercedes' Lewis Hamilton won his third Formula 1 Drivers’ World Championship with his 10th victory of 2015 at a thrilling United States Grand Prix two weeks ago. Having already grasped the Constructors' Championship title for the second consecutive year prior to this, the “Silver Arrows” are enjoying their most dominant season in more than 60 years.

In September, COBRA PUMA GOLF golfer Rickie Fowler enjoyed another victory at The Deutsche Bank Championship at TPC Boston. Wearing his signature orange apparel and equipped with his COBRA Fly-Z+ Driver, Fowler powered his way to a victory. His looks consisted of PUMA apparel and footwear from our 2015 Autumn/Winter collection, for example the Titantour, the coolest shoe in golf. COBRA PUMA GOLF athlete Lexi Thompson recently won the LPGA KEG Hana Bank Championship in South Korea, proving her outstanding talent once again with her second victory of the year and sixth overall.

Strategy Update

Our sales for the first nine months of this year and the very positive feedback from retailers around the world regarding our new products as well as a strong order book confirm that we are on the right track. Our stronger sales performance in Footwear underlines our progress in becoming the Fastest Sports Brand in the World.

We have continued to improve our product offering for women and our communication approach to them. Building on a strong heritage and credibility with women, we have emphasized female consumers as a key growth segment for PUMA. A key element of this strategy is our collaboration with world-famous artist Rihanna as brand ambassador and Creative Director, which we have taken to a new level. She plays a prominent role in our second Forever Faster brand campaign, a multi-million euro media investment with a dedicated focus on Training. Within the campaign, Rihanna is featuring the training shoe IGNITE XT. Her first TV commercial for PUMA initially aired in September.

Beyond a mere endorsement, PUMA has just launched the first in a series of Rihanna-inspired footwear and apparel styles. The “Creeper” is the first sneaker from PUMA by Rihanna under her FENTY Label. It remixes the iconic PUMA Suede with a creeper sole inspired by the NYC punk rock scene with high-end details and Rihanna's signature branding. The first limited edition black and white colorway of the Creeper was available only on our PUMA.com website and a PUMA-hosted pop-up store in New York’s SoHo neighborhood. The shoe generated unprecedented social media and PR coverage for PUMA and sold out within hours. More colorways are currently being sold via PUMA.com and key retail partners worldwide.

We will further optimize our product offering for women across our performance and lifestyle categories in the coming seasons. This is not limited to, but includes additional Rihanna-associated styles, such as the boxing-inspired Eskiva shoe available in November 2015 and a complete collection of footwear and apparel styles to be launched in 2016.

Our efforts to further improve our close collaboration with key retailers are critical in our go-to-market strategy. The Creeper launch would not have been possible without the close alignment of our product and marketing teams with key retailers. Additionally in North America we have improved our presence with shop-in-shops, special wall units and permanent in-store communication at major sports accounts including Finish Line and Champs. As for PUMA’s owned and operated stores, we have continued to roll out our new Forever Faster store layout to currently eleven locations worldwide.

Social, economic and environmental sustainability is a core value for all of us at PUMA. We believe that keeping these dimensions in balance is crucial to achieving sustainable business development. Therefore we welcomed the opportunity of becoming an official partner of COP21. As an official partner of the UN Climate Change Conference in Paris, we will equip 180 students in charge of welcoming visitors from all over the world. These trainee hosts and hostesses will wear specifically designed PUMA outfits that are entirely made of organic cotton.

Outlook for the Financial Year 2015

The business development in the first nine months of 2015 was in line with our expectations and our full-year guidance for 2015 remains unchanged.

We reiterate our expectation that adverse currency effects, particularly the strengthening of the US Dollar versus nearly all other currencies, will continue to impact PUMA’s reported gross profit margin, OPEX and EBIT. PUMA has already taken and will continue to take countermeasures, but the impact will not fully offset the negative currency effects.

In the remainder of 2015, PUMA will continue to invest strongly in marketing to further enhance and reinforce its new brand positioning. The investments in the upgrade of PUMA’s current IT-infrastructure and the extension of our own retail store network will also continue. This will result in an increase in OPEX that will be further impacted by negative currency effects. At the same time, PUMA’s management will continue to put a strong emphasis on strict control of other operating costs.

Thanks to the countermeasures implemented and at the current exchange rate levels, we expect a slightly softer drop in the gross profit margin for the full-year at the lower end of the range of minus 100 to 150 basis points versus last year. The improvement in gross profit margin due to these countermeasures, however, comes at a slight negative effect on net sales. Nonetheless, we continue to expect an increase in the medium single-digit range for full-year currency-adjusted net sales and we reiterate our expectation for a full-year EBIT in a range between € 80 million and € 100 million, with net earnings impacted accordingly.

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.

Michael has 25 years of hands-on experience in sourcing, product development and sales, having worked in various senior management functions for companies such as Decathlon, Tesco and COACH Leatherware. He is based in Hong Kong and reports directly to PUMA's Chief Operating Officer Lars Sørensen. 

Dr. Reiner Hengstmann, former Global Director Sustainability and Compliance, led the Safe Department since 1999. He has left PUMA to pursue career opportunities outside the company.

"The exact movements that make an athlete hot are converted and used to cool them down," said Charles Johnson, Global Director Innovation. "That functional dynamic informed the visual language of the jacket. That's what makes it special."

When sport activity increases, so does the body temperature. Sweat buildup and heat create a humid climate inside apparel that make it uncomfortable. Traditional performance apparel deals with this condition by using performance textiles and zippers and vents that are all static. The evoTRG Vent Jacket, on the other hand, provides temperature control with technical stretch mesh that assists in ventilation and allows for freedom of movement. In addition, windCell ensures protection against wind to minimize the loss of body temperature. The vent Thermo-R jacket demonstrated a better cooling technology in terms of skin temperature compared to the closed vent and vented control jackets. Skin temperature decreases appeared higher after 10 minutes compared to 20 minutes, and were on average 0.4°C cooler.

SALES GROWTH ACROSS ALL REGIONS AND PRODUCT SEGMENTS IN FOURTH QUARTER AND FULL-YEAR

2015 Fourth Quarter Facts

• Sales grow by 17.1% to € 879 million (+11.5% currency adjusted)
• Gross profit margin decreases to 42.7% due to adverse currency effects
• EBIT improves only slightly to € 11 million, because of continued heavy investments in OPEX, especially marketing, retail, and IT
• Strong sell-through of first Rihanna-inspired Footwear ignites PUMA’s women’s business

2015 Full Year Facts

• PUMA’s full-year sales increase by 14.0% to € 3.4 billion (+6.5% currency adjusted)
• Sales growth mainly driven by Footwear and Running and Training category
• Gross profit margin decreases to 45.5% due to adverse currency effects
• OPEX increase due to higher marketing activities, retail upgrades, and IT investments as well as adverse currency effects
• EBIT at € 96.3 million in line with guidance
• Net earnings amount to € 37.1 million (2014: € 64.1 million) and EPS come in at € 2.48 (2014: € 4.29)
• New product launches perform strongly, both in sports performance and lifestyle categories

Bjørn Gulden, Chief Executive Officer of PUMA SE

The year ended with a strong fourth quarter showing double digit reported growth across all regions and all product categories. We saw improved sell-through both in our owned and operated retail and with our retail partners. We know that we still have a lot to improve but feel that during this year we have strengthened the PUMA brand, presented better products and further improved the co-operation with our retail partners.

We have seen progress in our performance categories, led by Running and Training, as well as our lifestyle business where especially our classic styles developed strongly in the second half of the year. I am especially proud to see our positive development in the women’s business where our co-operation with Rihanna and a strong product offering have increased the interest from both retailers and consumers.

Unfortunately the strengthening of the US-dollar versus nearly all other currencies has had a significant impact on both our gross profit margin and our operating expenses and therefore also on our EBIT and net earnings.

But we feel that we as a company have made progress in 2015 and that we have laid the groundwork for high single digit sales growth as well as improved EBIT and net earnings in 2016.  We look forward to a great sports year with the Olympic Games in Rio, Copa America in the USA and the UEFA Euro 2016 in France. We feel we are well prepared with better products, more and better marketing and an even closer co-operation with our retailers.

Fourth Quarter 2015

Double-Digit Sales Growth thanks to strong Performance across all Regions and Product Segments

PUMA's growth trend in revenues continued in the fourth quarter 2015. Sales increased by 17.1% to € 878.9 million (+11.5% currency adjusted), compared to € 750.8 million in the previous year.

In the EMEA region, revenues were particularly high, rising 20.3% to € 270.3 million (+21.0% currency adjusted). This development was supported by a strong Footwear performance in nearly all countries of the region.

The Americas region outperformed last year’s sales by 15.4% to € 368.4 million (+7.2% currency adjusted). Both North- and Latin America grew. All product segments were positive, with Apparel delivering the strongest growth.

Sales in the Asia/Pacific region came in at € 240.2 million, representing an increase of 16.2% (+8.6% currency adjusted) against the fourth quarter 2014. China and Oceania were the strongest performers in the quarter. While Footwear and Apparel grew, Accessories sales were broadly flat due to the weaker Golf business.

PUMA's Footwear segment achieved growth for the sixth quarter in a row. Sales improved by 16.1% (+11.0% currency adjusted) to € 360.8 million with strong gains in the Running and Training category as well as the successful launch of the first Footwear models designed by Rihanna.

With an increase of 21.1% (+15.3% currency adjusted) to € 354.8 million, the performance in Apparel was even stronger, as our Training and Fundamental products continued to resonate well.

Accessories saw a rise of 11.0% (+5.1% currency adjusted) to € 163.3 million despite a continued weak Golf environment.

Gross Profit Margin impacted by Currency Effects in the fourth Quarter

Due to adverse currency effects, PUMA’s gross profit margin decreased from 45.0% to 42.7% in the fourth quarter of 2015. This decrease applies to all categories. Footwear gross profit margins fell from 41.6% to 38.6%, Apparel margins declined from 47.1% to 46.5% and the margin for Accessories went down from 47.8% to 43.7%.

OPEX Growth in Line with Plan

Operating expenses rose by 11.3% and amounted to € 370.1 million in the fourth quarter 2015. That increase stemmed mainly from intensified marketing and retail activities. At constant currencies, the increase in OPEX was limited to 5.7%.

Operating Result / Financial Result / Net Earnings and Earnings per Share

Operating result (EBIT) was ahead of 2014 by 2.6% to € 10.9 million with the impact of sales growth more than compensating for lower gross profit margins and higher OPEX. The financial result amounted to € -1.3 million compared to € -1.0 million last year, while taxes on income decreased from € -4.7 million to € -2.8 million in the fourth quarter. Net earnings came in slightly improved at € -4.3 million (Prior year: € -4.6 million) and earnings per share were at € -0.29 compared to € -0.30 in the fourth quarter 2014.

Full-Year 2015

Full-Year Sales increase by 14.0%

In the financial year 2015, PUMA sales improved by 14.0% to around € 3.4 billion. The currency adjusted increase amounted to 6.5% and was in line with the guidance for 2015, which had anticipated currency adjusted growth to be in the medium single-digit range. All regions and product segments contributed to the positive development, posting a currency adjusted growth.

In the EMEA region, sales increased by 4.3% (+3.6% currency adjusted) to € 1.3 billion. Growth was in particular driven by the United Kingdom, France, and Germany with Eastern European countries, the Middle East, and Africa also reporting positive performances.

Sales developed particularly well in the Americas region, rising 22.5% (+8.8% currency adjusted) to € 1.3 billion. Both North- and Latin America contributed to the increase.

The Asia/Pacific region generated revenues of € 818.4 million, representing an increase of 17.5% (+7.6% currency adjusted). This was mainly attributable to higher demand from China and India, while growth in Japan stagnated, affected by the challenging overall economic situation.

The most important product segment for PUMA, Footwear, showed sustained growth through the year and had a very good overall performance in 2015, driven by the Running and Training as well as Teamsport categories. Reported sales increased by 17.4% (+9.2% currency adjusted) to € 1.5 billion.

Sales in the Apparel segment also improved significantly, thanks to strong demand for our Running and Training products. At € 1.2 billion, sales were up 12.9% (+6.0% currency adjusted) compared to 2014.

Sales in Accessories improved by 8.5% (+1.7% currency adjusted) to € 636.4 million.

Strong Increase in PUMA’s Retail Business

PUMA's retail sales increased by 9.3% currency adjusted to € 726.2 million, equivalent to 21.4% of total sales for the year. Growth was achieved on a like-for-like comparable store basis as well as by an expansion of the retail store portfolio and upgrades in consumer experience with the continued roll-out of the new “Forever Faster” store design at selected locations.

CURRENCY EFFECTS PUT PRESSURE ON GROSS PROFIT MARGIN

In line with expectations, PUMA's gross profit margin decreased in the financial year 2015, down 110 basis points to 45.5% compared to 46.6% in the previous year. The Footwear margin for the full-year was 41.2% after 42.6% in the previous year. The Apparel margin decreased slightly from 49.5% to 49.3%. The Accessories margin also declined from 50.0% to 48.0%. Those developments were principally caused by adverse currency effects, which significantly increased our input costs. Without the adverse currency effects the margin development would have been slightly positive.

Marketing efforts continue to drive OPEX

PUMA continued to place a strong emphasis on strict cost management during 2015 and prioritized marketing investments, aimed at cementing PUMA’s brand positioning as the Fastest Sports Brand in the World. 2015 saw the next successful iteration of the “Forever Faster” marketing campaign as well as investments into PUMA’s retail store portfolio and IT-infrastructure. Consequently, OPEX rose by 14.4% from € 1.3 billion to € 1.5 billion. At constant currencies, the increase in OPEX was limited to 7.3%.´

Operating Result (EBIT)

As projected, EBIT was significantly impacted by negative currency effects on the gross profit margin and by enhanced marketing. EBIT was € 96.3 million, down by 24.8% compared to 2014.

Financial Result

For the full-year 2015, PUMA’s financial result was at € -11.2 million as against € -6.2 million in 2014.

Net Earnings and Earnings per Share

Net earnings amounted to € 37.1 million (2014: € 64.1 million), representing earnings per share of € 2.48 (2014: € 4.29).

Net Assets and Financial Position

Business Expansion results in higher Working Capital Requirements

The Group's working capital increased to € 532.9 million as a consequence of sales growth and expanded product availability. Inventories were up 15.0% to € 657.0 million (previous year: 571.5 million), which is not only necessary in order to accommodate our planned sales growth in 2016, but also driven by higher unit cost and our extended retail store portfolio. Trade receivables rose by 7.6% to € 483.1 million (€ 449.2 million), while trade payables reported only a slight increase of 0.9% from € 515.2 million to € 519.7 million.

Free Cashflow

PUMA’s free cashflow came in at € -98.9 million as against € 39.3 million at year-end 2014. This development stemmed mainly from higher working capital requirements related to inventories.

Cash Position

As of December 31, 2015, PUMA's cash position amounted to € 338.8 million compared to € 401.5 million at the balance sheet date last year.

Dividend Proposal of € 0.50

The Administrative Board will propose an unchanged dividend of € 0.50 per share for the financial year 2015 at the Annual General Meeting on May 4, 2016.

Strategy Update

In 2015, we made further progress towards our mission of becoming the World’s Fastest Sports Brand. Our strategy encompasses five strategic priorities: Increasing PUMA’s brand heat, improving our product engine, optimizing our distribution quality, increasing the speed within our organization and infrastructure, and upgrading our IT infrastructure.

The repositioning of our brand began in 2014 with the largest brand campaign in our company history. It was clearly the focus of our activities again in 2015. The second "Forever Faster" advertising campaign in 2015 focused on our brand ambassadors and showed how they were training with PUMA products to get into shape for the major events in 2016. Rihanna joined Usain Bolt, Arsenal London and other athletes for the campaign. That included her first TV spot for our new training shoe IGNITE XT. Leading up to this highlight, she created a high level of buzz and positive attention in the media and on social networks.

In 2015, we made good progress in further improving our product engine. The collections stood out for their clearer design, more innovative technologies, and greater commerciality of the products. Not only was the feedback from our retail partners more positive, but also the increase in sell-in and sell-through shows that the product improvements have started to resonate well with our customers. The product highlights in 2015 include our new running shoe technology IGNITE, which we have built into a cornerstone of our Running and Training category with continuous new product launches – such as the IGNITE PWRCOOL, the IGNITE PROKNIT and the IGNITE XT. In Football, we continued to strengthen our product platforms evoSPEED and evoPOWER. The new products include evoSPEED SL, which is the lightest football shoe in the market at 103 grams. In Lifestyle, we introduced the first shoe models designed by Rihanna. The Creeper model received great attention in social media and in the press and the first color ways were sold out within hours. In addition, we also introduced the boxing-inspired Eskiva footwear collection. We will introduce a complete women's collection of shoes and textiles under the FENTY by Rihanna label during 2016. Our PUMA mainline products for women will also continue to be inspired by Rihanna’s creative direction.

In order to improve the quality of our sales and distribution, we established further joint product and marketing programs with our key retailers to showcase our brand in the right retail environment and drive sell-through. In 2015, we continued the roll-out of the retail concept "PUMA Lab", initially launched with Foot Locker in 2014, both in the U.S. and in the first locations in Europe and Australia. During the year we intensified our collaboration with other well-known retailers with the aim of improving the presence of the PUMA brand in stores, better communicating our product promise on site, and thereby achieving a sustained sales increase. For example, we continued to expand our presence in major sports retailers such as Finish Line and Champs by adding new shop-in-shop systems, special shelving units and permanent in-store communication. Amongst our marketing partnerships with key retailers was the evoCHALLENGE football campaign with Intersport. The hard work we did to improve the service level to our retail partners has started to show results: PUMA DACH was crowned No. 1 in the SAZ customer satisfaction survey amongst 300 sports retailers in the category Fitness and was ranked third in Teamsport.

In 2015, we developed a completely new "Forever Faster" store concept for PUMA’s own retail stores. This concept was first introduced at the group headquarters in Herzogenaurach and then in 14 additional locations during the year. The new store concept optimizes the presentation of our products and the related technologies and strengthens our position as a sports brand. To further improve and expand our online presence, we have rolled out and further enhanced our integrated web shop in 2015. The continuous optimization of the e-com website and our online product offering is a high priority for PUMA.

One of the key projects in terms of organizational structure was standardizing and optimizing the processes between PUMA and its suppliers by establishing a new platform to manage global order and invoice flows. One of the prerequisites was the implementation of an improved ERP-system supporting these standardized processes with our sourcing partners. Beyond that, PUMA has also made further progress in the modernization of our IT setup. That included the optimization of our basic IT-infrastructure and improved internal workflows. In 2016, we will initiate the implementation of an improved standard ERP-system for our local sales companies and continue the optimization of our internal platforms. We are very confident that our investments in these areas will lay the foundation for a fast, lean and efficient company in the future.

We also simplified our organization in other areas and made processes faster. For example, our two non-performance product areas Sportstyle and Fundamentals have been merged under joint leadership. PUMA is now also more efficiently organized in terms of regional setup. We have combined the two regions Europe and EEMEA under joint management and fostered the collaboration between both teams creating a simplified, more effective structure. PUMA is now also serving the heterogeneous Asian markets more effectively. The regional team in APAC has been integrated into the global organization, eliminating the additional reporting layer and giving local management direct access to our global resources.


We believe that "The future is female". For years, women have become more and more interested in sports, both in terms of sports viewership as well as participating in professional and leisure sports. Clearly the female market segment has been growing and outpacing the overall sports market. In addition, women have a much more profound impact on the entire sports industry. Athletic wear is turning into fashion as women have increasingly combined sportswear and sports-inspired pieces into their daily outfits. PUMA as the most fashion-forward global sports company has both the sports authenticity and the fashion credibility to be successful in the women’s athletic wear market. PUMA has a long history with outstanding female athletes and renowned creative partners and a diverse portfolio of current female brand ambassadors. We have been increasing our strategic focus on the female target group. A key element of this strategy is the partnership with Rihanna as our brand ambassador and creative director. Rihanna will directly influence our Performance and Sportstyle women’s collections with her intuitive, highly individual style.

Brand and Marketing Update

Following the launch of the home kits for our Football teams Italy, Switzerland, Austria, Czech Republic and Slovakia last November, all of whom qualified for the European Championships in France this summer, we recently introduced the away shirts. They also feature PUMA’s new apparel technology ACTV Thermo-R, strategically inserted in both the front and the back of the shirt to help players maintain an optimum body temperature. The taping in the shirts provides an extra snug fit, micro-massaging the skin in specific areas to enable a faster, more effective energy supply to the active muscles.

We only recently underlined again our strong innovation power for sports products when our evoTRG Football jacket was chosen as Winner in the ISPO AWARD 2016 category Apparel Performance Products Outer Layer. The jacket comes with dynamic thermoregulation control and has ergonomically-placed inserts that adapt during football moves: they open when in motion to keep players cool and close when the movement stops to keep them warm.

In December 2015, we extended our roster of world-class athletes in our Running and Training category through a new endorsement partnership with Canadian sprint sensation Andre De Grasse, which followed a number of other signings including Asafa Powell and Jenna Prandini. De Grasse shot to stardom, when he claimed a 100m bronze medal at the 2015 IAAF World Championships at only 20 years of age. He will become an increasingly important athlete within the PUMA family and feature in our Running campaigns across all regions in the lead up to the Olympic Games in Rio later this year.

Underlining our ambition to improve our product offering for women, which represents a key growth segment for PUMA, we have just launched our Spring Summer 2016 Training collection, which clearly recognizes the demands faced by today’s women with an active lifestyle. It includes both our Pulse XT Training shoe, which returns with great new colourways and offers maximum flexibility as well as a whole selection of sports bras to suit every women’s needs. The collection is presented by our newly signed Running and Training ambassadors Jenna Prandini, Enzinne Okparaebo and Jamie Granger.

A key partner in strengthening our women’s business is our brand ambassador and Women’s Creative Director Rihanna, who stole the show at New York Fashion Week earlier in February, when she launched a complete collection of footwear and apparel styles of her PUMA by Rihanna Collection and FENTY label. Her first product introduction as PUMA Women's Creative Director included the PUMA Creeper shoe released in September 2015 – which was a huge success.

In our Motorsport category, 2015 was another very successful season for PUMA, with Championship titles for MERCEDES AMG PETRONAS and Lewis Hamilton winning both the Drivers’ and Constructors’ standings in Formula One. Underlining our leading position as a supplier in Motorsport, our new long-term partnership with RED BULL RACING kicked-off yesterday during a spectacular event in London, when we introduced this season’s performance racewear, teamwear, and PUMA’s Red Bull Racing lifestyle and replica merchandising collections.

Outlook for the Financial Year 2016

Since autumn 2014, PUMA has invested heavily into its Forever Faster Campaign to position PUMA as the Fastest Sports Brand in the World. The partnerships with PUMA’s most elite ambassadors – the World’s Fastest Man Usain Bolt, star striker Sergio Agüero, Golfstar Rickie Fowler, Arsenal Football Club, Borussia Dortmund, the Jamaican and Cuban Olympic Federations, multi-platinum recording artist, designer and entrepreneur Rihanna, and more – have played a major role in increasing the brand heat and sell-through for PUMA in 2015.

With major improvements in the product offering, improved sourcing and higher investments in marketing, PUMA is confident that 2016 will be a year of solid sales growth with an initial improvement of profitability. As a consequence, currency-adjusted net sales are expected to increase at a high single-digit rate for the full-year 2016. The gross profit margin is forecasted to be on previous year’s level (45.5%), as countermeasures are planned to compensate the negative impact of further foreign currency developments for 2016 compared to 2015.

PUMA’s OPEX are forecasted to increase in a mid to high single-digit range. From a marketing perspective, the two major sporting events in 2016 (UEFA Euro 2016 and Rio 2016 Olympic Games) will require additional funding as does investment to modernize our retail store portfolio. Ongoing investments into the upgrade of PUMA’s IT-infrastructure will contribute to an increase in OPEX, but at all times management will continue to place a strong emphasis on strict control of other operating costs. At the current exchange rate levels, PUMA’s management expects that the operating result will improve in 2016 compared to last year. EBIT for the full-year 2016 is expected to come in between € 115 million and € 125 million with net earnings forecasted to improve correspondingly.

Notes to the editors:

• This press release and financial reports are posted on www.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.

IFC will adopt a financing structure with tiered pricing of short-term working capital, offering lower costs for those suppliers that achieve a high score in PUMA's supplier rating, that is applied after PUMA has monitored a supplier's adherence to the company's social and environmental standards through an auditing process.

“This financing program enables our suppliers to leverage their relationship with us and benefit from PUMA's strong reputation and financial position," said Lars Soerensen, PUMA’s Chief Operating Officer. "This is the first program in our company that rewards a supplier’s rating within PUMA’s environmental and sustainability program through related fees."

"IFC is the perfect partner for us to implement this program”, stated Frank Wächter, Senior Head of Treasury & Insurance at PUMA. "They have a proven track record in designing such programs and implementing them in countries in Asia, where many banks are not as active.”

Sergio Pimenta, IFC Director of Manufacturing, Agribusiness and Services said: “This agreement with PUMA advances IFC’s efforts to encourage small and medium companies such as PUMA’s suppliers to improve environmental and social sustainability while achieving strong financial results”. 

Ball Planet, a Chinese supplier of soccer balls with production facilities in China, is the first supplier to join the program. “We are keen to start using this financing facility, since access to affordable financing is always a challenge," Ken Hong, General Manager of Ball Planet Industrial Ltd., said: "This innovative program will not only help us improve our cash flow, but will also provide us with a financial incentive to improve our environmental, health and safety and social standards, which will ultimately reduce our operating costs and enhance our performance.” Ball Planet has been a business partner of PUMA since 2010.  

PUMA and IFC launched this initiative in partnership with GT Nexus, a cloud-based business network and platform for global trade and supply chain management. The platform enables participants to operate against a core, real-time set of information across multiple supply chain functions. This optimizes the flow of goods, funds and trade information.

IFC provides financing to ready-made garment and footwear suppliers through its Global Trade Supplier Finance (GTSF) program, which provides working capital to suppliers backed by receivables from international buyers. Supplier finance is a scalable way for suppliers in emerging markets to access affordable financing for their receivables over a period defined by the terms of credit. Established in 2010, IFC’s GTSF program is a $500 million multicurrency investment and advisory program that provides short-term finance to emerging-market suppliers and small and midsized exporters.

QUARTERLY STATEMENT Q1 2016

• Sales increase by 3.7% to € 852 million (+7.3% currency adjusted), with Footwear being the main growth driver
• Gross profit margin remains flat at 46.8%, as price adjustments, combined with an improved product offering, compensate negative impacts from a stronger US-Dollar
• EBIT improves by 10.1% to € 41.3 million, despite increased marketing investments to support key initiatives
• Strong momentum in women's business continues, underpinned by the successful launches of new products and marketing concepts

Bjørn Gulden, Chief Executive Officer of PUMA SE:

“The first quarter of 2016 developed as we expected. We saw organic growth in all segments and all regions. The development in certain currencies slowed down the reported growth in both top and bottom line.We are especially happy to see that our sell through to consumers is improving. Both in our own retail and with our retail partners we see a continuous improvement. This is especially strong in our women’s business, where the launches of new products and new marketing concepts have started to show excellent results.We do now look forward to this year´s great sport events. The Copa América, the UEFA Euro 2016, and the Olympics in Rio are all events that will have a positive impact on our industry and where we look forward to showcase PUMA as an innovative and design driven sports brand.Despite the negative impact of currencies we confirm our outlook for the full year.”

Sales Development:

PUMA's sales growth continued in the first quarter of 2016. Sales increased by 3.7% to
€ 851.9 million (+7.3% currency adjusted), compared to € 821.4 million in the previous year.

In the EMEA region, sales grew by 3.8% to € 354.4 million (+6.6% currency adjusted), with stronger growth in Germany, Austria, and France. This development was supported by a good performance of the Teamsport category prior to the UEFA Euro 2016. We anticipate further growth in Teamsport for the second quarter leading up to the event. Our teams Italy, Switzerland, Austria, Slovakia, and Czech Republic will all be wearing PUMA jerseys featuring PUMA’s new ACTV Thermo-R technology, which helps to maintain the best body temperature.

Sales in the Americas region remained flat at € 288.1 million in reported terms, but grew 5.4% on a currency adjusted basis. All major countries in the region continued to improve, while the Latin American region was strongly impacted by the weakness of its currencies, notably the Argentinian Peso. This impacted the sales development in Euro terms severely.

Sales in the Asia/Pacific region recorded the highest growth rate, improving 9.8% (+11.2% currency adjusted) to € 209.4 million. China was the strongest performer in the quarter, followed by India.

PUMA's Footwear segment grew for the seventh quarter in a row. Sales rose by 3.7% (+8.5% currency adjusted) to € 392.0 million, with strong gains in the Sportstyle as well as the Running and Training categories, supported especially by the successful launches of women’s silhouettes.
With an increase of 3.7% (+7.0% currency adjusted) to € 290.1 million, the performance in Apparel was also positive, as our Training and Teamsport products continued to resonate well with our customers. Accessories saw a rise of 4.0% (+5.1% currency adjusted) to € 169.8 million despite a continued weak Golf environment. PUMA's own and operated retail sales, including e-commerce, increased 15.1% currency adjusted to € 158.7 million representing 18.6% of total sales in the first quarter of 2016. This was achieved by strong like for like sales growth, caused by better product offer and improved consumer experience in the stores, and the expansion of new stores built with the new “Forever Faster” store design.

Gross Profit Margin and Operating Expenses:

The gross profit margin remained broadly unchanged at 46.8%, despite the negative currency impact from the stronger US-Dollar in 2016 compared to last year. PUMA was able to successfully implement selective price adjustments and our improved product mix helped to mitigate the negative impact from a stronger US-Dollar. Footwear gross profit margins improved from 42.9% to 43.5%, while Apparel margins declined from 50.7% to 49.9% and Accessories softened from 49.6% to 49.2%.

Operating expenses rose only 3.0% and amounted to € 361.7 million in the first quarter 2016. That increase stemmed mainly from intensified marketing activities and retail upgrades, while other operating areas and functions were able to keep the cost stable.

Operating Result and Net Earnings:

Operating result (EBIT) was ahead of the first quarter 2015 by 10.1% at € 41.3 million, as sales grew stronger than operating expenses, supported by a stable gross profit margin.

Net earnings improved by 4.0% to € 25.8 million (prior year: € 24.8 million) and earnings per share were up correspondingly at € 1.73 compared to € 1.66 in the first quarter 2015.

Working Capital

PUMA’s working capital increased by 3.2% from € 744.7 million to € 768.4 million in line with the higher sales and business volumes.

Outlook 2016

We continue to expect a currency adjusted high single digit increase of net sales, a gross profit margin on previous year’s level (45.5%), an increase of currency-adjusted operating expenses in a mid to high single-digit range, and an operating result (EBIT) between € 115 million and € 125 million.

BRAND AND MARKETING

One highlight for PUMA in the first quarter was the FENTY PUMA by Rihanna fashion show at New York Fashion Week in February. A series of styles for the female consumer have been launched successfully, both in collaboration with Rihanna as well as in our inline collection. Key footwear styles such as Creeper and FENTY Trainer sold out within weeks or days. We also reintroduced our iconic DISC system into running by launching the IGNITE DISC. In Motorsport we introduced the first products under our new partnership with Red Bull Formula One Racing.

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.