INFINITI RED BULL RACING is a key global partner for PUMA and as a top tier asset will feature alongside PUMA’s other high profile partners in PUMA’s brand and marketing campaigns in 2016 and beyond, with Forever Faster being the perfect platform to communicate INFINITI RED BULL RACING through a PUMA lens. PUMA branding will feature prominently on the INFINITI RED BULL RACING car, teamwear and racewear, bringing more brand presence to PUMA in the fastest of sports.

Bjørn Gulden, Chief Executive Officer for PUMA commented; “PUMA and Red Bull have a great brand synergy, and this new partnership with INFINITI RED BULL RACING is another big statement for PUMA. There is huge potential within the wider Red Bull organisation to build upon this partnership and explore new territory, and there is an enthusiasm amongst both companies to do so. INFINITI RED BULL RACING is a great team with massive appeal, and this is another positive step in our desire to become the Fastest Sport Brand in the World.”

Christian Horner, Team Principal of the INFINITI RED BULL RACING team said; ‘‘PUMA is a great fit with the INFINITI RED BULL RACING team and we are looking forward to working with them once again. RED BULL RACING and PUMA enjoyed a successful relationship between 2007 and 2010, during which time we won our first Drivers’ and Constructors’ Championships (in 2010). The licensed collection that will launch in 2016 is looking fantastic; I’m sure the fans are going to love it.”

PUMA has a long heritage in the Motorsport category and since 1999 has worked with a number of high profile Formula One teams as an Official Partner and supplied these teams with innovative fireproof performance racewear. The addition of INFINITI RED BULL RACING to PUMA’s portfolio of Formula One partners will complement the brand’s existing licensees, infusing PUMA’s Motorsport category with bold INFINITI RED BULL RACING product designs that will broaden the appeal of the Global Sport Brand’s motorsport offering.

The previous guidance for 2015 (increase in the medium single-digit range for full-year currency-adjusted net sales, slight increase of the gross profit margin, slight increase of the operating result (EBIT) and of the net earnings compared to 2014) is therefore amended.

From today’s perspective, we continue to expect an increase in the medium single-digit range for full-year currency-adjusted net sales. However, due to the negative currency effects we 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%). The operating result (EBIT) for the full year is expected in a range between 80 million and 100 million EUR. The net earnings guidance is amended according to the adjustment of the guidance for the operating result (EBIT).

CURRENCY EFFECTS WEIGH ON REPORTED MARGINS

2015 First Quarter Facts

• Sales up by 4.4% currency-adjusted (+13.2% reported) to € 821 million, growth across all regions and mainly driven by Footwear
• Gross profit margin down, solely due to foreign currency impacts  OPEX increase because of marketing expenses, investments in IT, opening of new retail stores, also strongly impacted by unfavorable currency rates
• EBIT stands at € 38 million
• PUMA IGNITE running shoe technology successfully launched in February
• Outlook adjusted to reflect currency impact

Bjørn Gulden, Chief Executive Officer of PUMA SE: “PUMA´s first quarter sales grew slightly stronger than expected. This was mainly caused by a very positive development in footwear. We are working very hard to improve our product offer, and although we know we have some ways to go, we feel that this growth in footwear confirms that we are on the right path.

The negative development in currencies, had a significant negative impact on our gross profit margin and operational expenses and therefore also on our EBIT and net earnings. We do work hard to „counter“ these negative currency effects, but do currently not have enough leverage to fully neutralize the impact and have therefore adjusted our outlook for the full year EBIT and net earnings.

We will continue our strategy to become the Fastest Sports Brand in the World and will continue to invest in Product, Marketing, Retail and IT to lay the foundation for solid profitable growth in the future.”

Sales growth in the first quarter

PUMA’s first quarter sales performance in 2015 was slightly ahead of our expectations. Currency-adjusted sales increased by 4.4% to € 821 million. In reported terms, this corresponds to a growth of 13.2%.

Positive sales development in all regions

Sales in the EMEA region rose by 0.2% currency-adjusted to € 342 million. Southern European countries developed positively in the first quarter, while the United Kingdom saw a decline due to a softer Lifestyle business. The Middle East and Africa regions continued to show a solid performance in most of the countries and across all categories.

In the Americas region, sales grew by 5.6% currency-adjusted to € 289 million, with both North America and Latin America developing positively.

Asia/Pacific sales increased by 10.9% currency-adjusted to € 191 million with strong performance in China and India supported by the improved Footwear business.

Footwear leads segment performance in the first quarter

Footwear sales increased by 7.8% currency-adjusted to € 378 million. This was driven by a higher demand for PUMA’s Running, Training & Fitness products, which was partly triggered by the successful launch of the PUMA IGNITE running shoe in mid-February.

Apparel sales increased by 5.7% currency-adjusted to € 280 million. A strong demand for PUMA’s Fundamentals, Running, Training & Fitness and Golf products underpinned this good performance.

Accessories sales decreased by 4.6% currency-adjusted to € 163 million. This is related to lower sales of socks and bodywear in the North American market.

Satisfying retail performance

PUMA’s first quarter Retail sales increased by 7.3% on a currency-adjusted basis to € 144 million, with comparable sales in full-price stores and outlets slightly up. PUMA also operated a higher number of stores. Retail sales represented 17.5% of total sales compared to 17.1% last year.

Negative currency impacts affect gross profit margin

PUMA’s gross profit margin declined from 48.5% to 46.9% in the first quarter, solely due to negative currency impacts. The strength of the US Dollar compared to major “unhedged” and not fully hedged currencies including Russian Ruble, Mexican Peso, Brazilian Real, Turkish Lira and Argentinian Peso led to this decrease. The Footwear gross profit margin declined from 44.1% to 42.9%.  Apparel decreased from 53.6% to 50.7%, and Accessories remained at previous year’s level of 49.6% (Q1 2014: 49.7%). In absolute figures, gross profit increased by 9.3% in reported terms from € 352 million to € 385 million.

Higher OPEX in line with expectations

As communicated previously, PUMA continued to invest in the “Forever Faster” marketing campaign in the first quarter 2015. There was no major campaign in the first quarter in 2014. In addition, we have started to invest in our IT infrastructure and we continued with our retail strategy to open additional retail stores, mainly in emerging markets. As with the gross profit margin, OPEX was heavily impacted by the unfavorable currency developments. As a consequence, PUMA’s OPEX increased by 17.7% to € 351 million. PUMA’s management continues to put a strong emphasis on strict control of other operating costs. In constant currencies, the increase in OPEX amounts to 9.5%.

Operating result (EBIT) declines

Despite the sales growth in the first quarter 2015, the lower gross profit margin and increased operating expenditures both impacted by negative currency developments led to a decrease of PUMA’s operating result (EBIT) from € 59 million to € 38 million. The EBIT ratio decreased from 8.1% to 4.6%.

Financial result improves

The financial result improved from € -3.2 million to € 0.9 million in the first quarter. The result turned positive due to currency conversion impacts.

Net earnings decrease

PUMA’s consolidated net earnings declined by 30.3% from € 36 million to € 25 million. As a result, earnings per share decreased from € 2.38 to € 1.66 in the first quarter of the year.

Net Assets and Financial Position

Working capital rose in line with sales

Inventories increased by 23.7% (11.9% currency adjusted) to € 648 million due to earlier deliveries in order to better service our key strategic accounts. Trade receivables increased by 17.9% (6.2% currency adjusted) to € 596 million compared to 31 March 2014, which was driven by higher sales. Trade payables were similarly affected by currency exchange rates and increased by 36.7% to € 467 million. As a result, PUMA’s working capital rose by 10.6% from € 674 million to € 745 million at the end of March 2015.

Cashflow / Capex

The free cashflow before acquisitions declined to € -233 million mainly due to lower cashflows from operating activities as a result of the increased working capital.

Capex increased from € 12 million to € 16 million, which was mainly invested in the opening of selected retail stores as well as IT equipment.

Stable cash position

PUMA’s cash and cash equivalents position at € 295 million as of 31 March 2015 remained broadly stable at last year’s level of € 301 million.

Brand and Product Update

Following the launch of our latest running innovation PUMA IGNITE by the World’s Fastest Man Usain Bolt on New York City’s Times Square, the sell-through of this innovative footwear technology has been off to a good start both in retail and wholesale. The innovative IGNITE foam technology offers the highest energy return in the industry and strongly represents our new “Forever Faster” positioning.

In order to further strengthen our dominant position in Motorsport, we recently announced a new long-term Formula 1 partnership with INFINITI RED BULL RACING. Effective 1 January 2016, we will be the official, licensed supplier of team and race wear. In addition, we will exclusively produce and distribute INFINITI RED BULL RACING licensed replica, fanwear and lifestyle collections for global distribution. We will also prominently feature INFINITI RED BULL RACING in our brand and motorsport marketing campaigns in 2016 and beyond.

Our partnership with Red Bull will span beyond Formula 1 racing. We have also signed a new multi-year partnership with the “Wings for Life World Run”, which was co-founded by Red Bull founder Dietrich Mateschitz to fund scientific research for spinal cord injuries. This will serve as a platform to promote our IGNITE running and CELL apparel technology. As the exclusive official sportswear partner, event staff and athletes participating in the Wings for Life World Run sported PUMA footwear, apparel and accessories. 100% of all starting fees and donations will go directly to spinal cord research.

Our Teamsport category saw the extension of one of PUMA’s longest-standing and most successful partnerships in Football: through our new long-term contract with the Italian Football Federation (FIGC), PUMA has increased its marketing rights as well as retained the exclusive Master License to actively manage the entire global licensing portfolio of the Federation. PUMA, who first became partner of “Gli Azzurri” in 2003, will also continue as the official technical supplier to all associated FIGC teams.

In March, PUMA won the “2014 Marketing Leader Award” from Foot Locker Europe. The award has recognized PUMA’s “Forever Faster” marketing campaign, which was launched in Autumn/Winter 2014 and the growth of brand awareness through the effective use of advertising, public relations and event marketing. This underlines the impact of our “Forever Faster” campaign and the close collaboration with our retail partners.

Strategy Update

We have made further progress towards becoming the Fastest Sports Brand in the World. We have launched successful products for this year’s Spring Summer season, including our new IGNITE running technology. Over the coming seasons we will continue to develop the IGNITE platform with innovations, material updates and product launches supported by dedicated media activities.

We have said that we would enhance our product communication, telling better and simpler stories to the consumers and utilize our assets. This promise is reflected in our ongoing marketing campaign “Forever Faster”. The current theme is more product-focused and features Usain Bolt running in the IGNITE as well as star-footballers including Mario Balotelli and Cesc Fàbregas in action with our latest football boot innovation evoPOWER.

Our new multi-year partnership with Rihanna has already generated a lot of positive PR and social media buzz. Rihanna is an ideal brand ambassador, thanks to both her personality and iconic style. She is currently featured in an in-store marketing campaign promoting PUMA’s key training styles of the season. In August, Rihanna will also play a key role in the brand campaign Forever Faster, featured along PUMA’s world-class athletes such as Usain Bolt and Sergio Aguero. Later she will be the Creative Director for her own line of training & lifestyle products.

In terms of improving the quality of our distribution, our sales organizations are working hard to intensify our relationships with key strategic accounts as well as building new partnerships with strong retailers in both established and emerging markets. Amongst others we have continued our collaboration with Foot Locker and opened the first European PUMA Lab at the Foot Locker store in Milan in February. We have also added new locations to their US portfolio in Philadelphia and Atlanta.

As for PUMA’s own retail, we have developed a new instore concept which will ensure that our PUMA stores better tell our product stories, reveal the technologies behind them and strengthen PUMA’s positioning as a sports brand. Last month, we started the global roll-out with our PUMA store in Herzogenaurach. It will continue to be implemented in our stores world-wide, with the shops in Hong Kong and Mexico City being next in line. Continuing our efforts to improve and expand our online presence, we have expanded the selection of our eCommerce website to include our more exclusive PUMA Select products as of May.

We continue to work on simplifying our organizational structure and setup. In Indonesia we have transitioned from a distributor to a new subsidiary which will improve our presence in this important market. In terms of our IT enhancement, we continue to work on our focus areas including standardized ERP systems, overall IT infrastructure and also tools to enable more efficient design and planning processes. These investments are essential in order to achieve our vision of becoming the Fastest Sports Brand in the World. We will continue to drive our growth strategy forward with better, and faster collections, continued investments into our brand, our organization, our distribution and our IT infrastructure.

Outlook for the Financial Year 2015

In 2015, PUMA will continue its strong marketing investments to further enhance and reinforce our brand positioning, making a further step in getting PUMA back on a path of more profitable and sustainable growth.

After the positive sales development in the first quarter 2015, we continue to expect an increase in the medium single-digit range for full-year currency-adjusted net sales.

However, as already indicated in the outlook for 2015 at the beginning of this year, the continued adverse developments of foreign exchange rates during the recent months, 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. As a consequence, we now foresee 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%).

As announced at the beginning of this year, we will continue to invest strongly in marketing, in the upgrade of PUMA’s current IT infrastructure and the extension of our own retail store network. This will result in an increase in OPEX, that will be further exacerbated by negative currency impacts. At the same time, PUMA’s management will continue to put a strong emphasis on strict control of other operating costs.

As a consequence of the now expected drop in gross profit margin and adverse currency effects on OPEX, we now expect EBIT for the full year to come in at a range between € 80 million and € 100 million. Net earnings will be 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 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.