NEW STRATEGIC DIRECTION “FOREVER FASTER” SUCCESSFULLY LAUNCHED

2014 Fourth Quarter Facts

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

2014 Full Year Facts

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

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

FOURTH QUARTER 2014

Strong fourth quarter performance

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

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

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

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

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

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

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

FULL YEAR 2014

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

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

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

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

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

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

Sales growth continued in PUMA’s Retail Business

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

Slightly improved Gross Profit Margin

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

Marketing efforts drive OPEX

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

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

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

No Special Items in 2014

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

Operating Result (EBIT) after special items increased

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

Financial Result improved

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

Net Earnings / Earnings per share increase

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

NET ASSETS AND FINANCIAL POSITION

Working Capital position continues to improve

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

Cashflow / Capex

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

Cash Position improved

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

Dividend

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

STRATEGY UPDATE

To be the Fastest Sports Brand in the world

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

Strategic priorities

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

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

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

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

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

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

BRAND AND MARKETING UPDATE

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

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

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

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

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

OUTLOOK FOR THE FINANCIAL YEAR 2015

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

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

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

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

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

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

NOTES

Media Relations:

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

Investor Relations

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

Notes to the editors

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

Notes relating to forward-looking statements

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

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

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

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

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

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

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

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

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