The new administrative building, which will be about 123 meters long and 22 meters high and will contain 14.000 square meters of office space, will be erected across from the existing PUMAVision Headquarters in Herzogenrauch, at the road Zum Flughafen. An 85-meter-long bridge made of 173 tons of steel will serve both as a new landmark and connecting element between the existing headquarters and the new building. A pylon, measuring 37 meters in height, will stabilize the bridge at the PUMAVision Headquarters. Nuremberg-based firm Klaus Krex created the architectural design and dealt with the respective building application. Mainly local companies are involved in the construction process.

Bjørn Gulden, CEO PUMA SE, said: “The construction of our new administrative building is a further clear commitment to our roots in Herzogenaurach. With modern office spaces and an extension of our sports offering, we will be able to provide attractive working conditions to our employees, while fostering our dynamic corporate culture as a sports brand and underlining our role as one of the leading employers in the region. By relocating our offices from Würzburger Straße and merging our work force in Herzogenaurach, we are not only ensuring short distances for faster decisions at our German location, but are also providing a true gateway to the city with the bridge.”

Bavarian State Minister Dr. Markus Söder said: “PUMA is a global Sports Brand. The company stands for innovation and passion. Thanks to this, Herzogenaurach has become a center for sporting goods known across the world. PUMA has always underlined its commitment to its Mid-Franconian hometown and is one of the most important employers in the region. By expanding its headquarters and making investments in the region, PUMA once again proves its close links with Herzogenaurach and the region of Middle Franconia.”

Lothar Matthäus, a long-time PUMA partner who holds the record for the most games played as part of the German national team, said at the groundbreaking event in his hometown Herzogenaurach: “It’s a great honour for me to be involved in the groundbreaking ceremony today. My career is closely connected to PUMA and I am happy the company is staying true to my Franconian home of Herzogenaurach. I think that the designs for the offices and the ‘PUMA Bridge’ look good and I’m already excited to see what the wild cat’s new home will look like once construction has been completed.”

The new six-story building complex, which will be built using around 1.400 tons of steel and roughly 9.500 cubic meters of concrete, will include light-flooded open-plan offices with a floor-to-ceiling window front and will be able to be custom arranged for projects and work groups through mobile, noise insulating furnishing elements. Apart from this flexibility, several sports offers will underline PUMA’s guiding principles with the mission of being the fastest sports brand in the world. Not only a gym of roughly 500 square meters will be available for PUMA’s employees, but also a large exterior area with a volleyball and basketball court as well as an additional multifunctional area of 500 square meters.

The new building will meet the same high environmental standards as the adjacent PUMAVision Headquarters. A modern concrete core temperature control will ensure sustainable heating and cooling in conjunction with air-water heat pumps, while the majority of rinsing water will be provided through a cistern containing 300 cubic meters of rainwater. Herzo Werke will manage the supply of district heating. Moreover, PUMA intends to provide charging stations for electric vehicles at the site.

Our analysis of the Swiss Home jersey from Sunday's game shows that there was one batch of material, where yarns had been damaged during the production process, leading to a weakening in the final garment. This can happen, if the combination of heat, pressure and time is not properly controlled in the manufacturing process. The tight fitting ACTV jerseys are made of an elastane and polyester material mix. The defective material was used in only a limited number of Swiss home jerseys.

PUMA has checked the inventory of all jerseys of all PUMA teams and can assure that such an unfortunate incident does not happen again. PUMA's national team jerseys for the EURO 2016 are manufactured in Turkey.

The ACTV Thermo-R technology helps players to maintain an optimum body temperature through a unique phase-change material injected into the shirt’s inner athletic taping, strategically inserted in the front and back of the shirt. It has successfully been used in national and club team jerseys since March 2014 and worn during the World Cup and subsequent club season.

This was a very unfortunate incident and PUMA apologizes to the Swiss federation and their players.

“We are proud that we partner with the best F1 teams in the world and we want to share this with the worldwide F1 Fan community. Fuel For Fans creates a platform where fans can be more connected to their team or pilot – full product ranges are spiced up with Special Editions for the most passionate Motorsport fans,” says Keith Harkess, Managing Director BRANDED.

FUELFORFANS.COM offers a flexible designed platform in which Mercedes AMG Petronas, Ferrari, Red Bull and Williams Martini Racing can showcase their team’s unique branding throughout dedicated Team Areas.

Behind the project is the PUMA-owned merchandising company BRANDED, that designs, develops and distributes licensed merchandise. The company makes use of its expertise in Motorsport team wear and fan wear ranges in its designs, from technical team requirements and the representation of a brand’s image, to how to make fans feel more connected to their team or pilot.

For more information, visit FUELFORFANS.COM

#WEOWNTHEGRID

2016 Second Quarter Facts

• Sales improve by 13% currency adjusted to € 827 million (+7% reported) with growth across all product segments
• Gross profit margin declines to 45.6%, negatively affected by stronger US-Dollar
• Moderate increase in OPEX of 3%
• Operating result (EBIT) improves by 75% to € 12 million
• Great visibility of PUMA in the UEFA Euro 2016 with five national teams wearing PUMA jerseys and PUMA player Antoine Griezmann being the top scorer and Player of the Tournament

2016 Half-Year Facts

• Sales up by 10% currency adjusted to € 1,678 million (+5% reported) with growth in all product segments and regions
• Gross profit margin decreases slightly to 46.2% due to negative currency impacts
• Operational leverage with OPEX increasing by 3% only
• Operating result (EBIT) rises by 20% to € 53 million
• Earnings per share improve by 28% to € 1.84
• PUMA Women's category further strengthened by continued launches of products such as the PUMA Fierce and new partnership with New York City Ballet

Bjørn Gulden, Chief Executive Officer of PUMA SE

“We are happy with the development in the second quarter. Sales developed as expected with double-digit organic growth. Gross profit margin continued to be under pressure due to the strong US-Dollar, but based on good cost discipline, we achieved operational leverage and saw nice improvements in both EBIT and net earnings.

We continue to see better sell-out of our products in the stores, as we feel consumers are getting more interested in our brand and products again. Meanwhile, we continue to work hard with the leading retailers in order to secure more and better space in their stores.

We felt that our teams and players in Euro 2016 in France gave us a lot of good visibility. We now see that our women initiatives with products and marketing around Rihanna and Kylie Jenner are working very well. Finally, we are looking forward to great Olympic days in Rio where fantastic athletes like Usain Bolt will be wearing our innovative and design driven products.”

Second Quarter 2016

Sales

PUMA’s sales growth continued in the second quarter 2016. Sales improved by 12.8% currency adjusted to € 826.5 million (+7.0% reported) with all segments contributing to this positive development.

The EMEA region performed extraordinarily well, posting a double-digit growth rate of 23.5% currency adjusted to € 321.3 million (+18.8% reported). All countries within the region showed strong performances, especially in the Teamsport category which gained extra momentum due to the UEFA Euro 2016.

In the Americas region, sales increased by 5.0% currency adjusted to € 315.6 million with growth in North- and Latin America. In Euro terms, however, sales decreased by 3.9%, as the weakness of currencies in Latin America, notably in Argentina, had a negative impact on reported sales.

The Asia/Pacific (APAC) region performed well with sales increasing by 10.3% currency adjusted to € 189.6 million (+9.1% in Euro terms). China was the main driver of this positive development.

Footwear was able to continue its growth path. Sales came in at € 360.2 million, representing an increase of 7.3% currency adjusted (+0.4% reported). Especially Sportstyle, Fundamentals and Teamsport achieved major gains.

Apparel posted the highest growth rate among the three product segments, improving by 19.5% currency adjusted to € 299.1 million (+13.6% reported). This excellent result derives mainly from the success of the Teamsport category, fuelled by the UEFA Euro 2016 and high growth in other product categories.

Sales in Accessories improved by 14.1% currency adjusted to € 167.1 million (+10.9% in Euro terms), driven by a higher demand for backpacks and headwear amongst others.

Gross Profit Margin and Operating Expenses

The negative currency impact from the stronger US-Dollar continued to put pressure on the gross profit margin, resulting in a decrease of 110 basis points to 45.6%, which is reflected in all product segments: The Footwear gross profit margin softened slightly from 42.3% to 41.9%, the Apparel margin fell from 50.7% to 49.5% and the Accessories margin declined more strongly, mainly due to the difficult golf market, from 50.0% to 46.6%.

Operating expenses (OPEX) increased only by 3.2% to € 368.8 million. The increase is mainly due to investments in PUMA retail stores and additional marketing activities associated with the UEFA Euro 2016. Other operating areas and functions kept the costs stable.

Operating Result and Net Earnings

The operating result (EBIT) improved by 75.1% to € 11.9 million. The main reason for this is the sales growth combined with the only moderate increase in operating expenses.

Net earnings amounted to € 1.6 million compared to a loss of € -3.3 million last year, translating into earnings per share of € 0.11 after a loss of € -0.22 in the second quarter of 2015.

First Half-Year 2016

Sales:

Based on two good quarters, sales for the first half-year 2016 improved by 9.9% currency adjusted to 1,678.4 million (+5.3% reported). The main driver was the strong performance in the EMEA and APAC regions. This sales development supports our full-year guidance of a high single-digit growth of currency adjusted net sales.

Sales in the EMEA region showed the highest increase, rising by 14.0% currency adjusted to € 675.7 million (+10.4% in Euro terms), with France and the DACH area (Germany, Austria, Switzerland) having developed particularly well. From a product perspective, all three product segments recorded double-digit growth.

In the Americas region, sales rose by 5.2% currency adjusted to € 603.6 million (-2.2% reported). North- and Latin America contributed to this positive development. However, negative currency effects in Latin America, notably in Argentina, continued to impact the sales development in Euro terms.

The Asia/Pacific region was also a strong driver of the overall growth of PUMA in the first half of 2016. Sales were up by 10.8% currency adjusted to € 399.0 million (+9.4% reported). China recorded a double-digit growth rate and Japan also showed a solid upturn. This positive development was supported by strong demand for PUMA Footwear in the region.

Sales in PUMA's Footwear segment amounted to € 752.2 million, representing an improvement of 7.9% currency adjusted (+2.1% reported). Especially Sportstyle and Fundamentals achieved major gains.

Apparel grew by 13.0% currency adjusted to € 589.2 million (+8.5% reported), contributing the major part of the overall sales increase. The strong performance is mainly due to the ongoing success of Teamsport as well as Running & Training products.

Accessories sales rose by 9.4% currency adjusted to € 336.9 million (+7.3% in Euro terms), driven by a higher demand for backpacks and headwear amongst others.

Including eCommerce, PUMA's own and operated retail sales increased by 12.2% currency adjusted to € 344.7 million. This represents a share of 20.5% of total sales for the first half of 2016 (20.2% in the previous year). The reasons for this rise are a healthy like-for-like sales growth and the extension of our retail store network, as well as a growing eCommerce business.

Gross Profit Margin and Operating Expenses

At 46.2%, the gross profit margin was 60 basis points below last year's 46.8%, solely due to the negative currency impact on our cost of sales from the stronger US-Dollar. Despite this impact the margin for the Footwear segment improved slightly from 42.6% to 42.7% thanks to a better product mix, whereas margins for the Apparel as well as for the Accessories segments went down from 50.7% to 49.7% and from 49.8% to 47.9% respectively.

Operating expenses (OPEX) amounted to € 730.5 million in the first half of 2016, being up moderately by 3.1%. The slightly higher costs compared to 2015 derive from intensified marketing activities and retail upgrades, while other operating areas and functions were able to keep the costs stable.

Operating Result and Net Earnings

At € 53.2 million, the operating result (EBIT) for the reporting period came in 20.1% higher than in 2015. This is due to the operational leverage as sales increased stronger than operating expenses.

At € 27.4 million, net earnings also improved by 27.6% (prior year: € 21.5 million). As a consequence, earnings per share went up to € 1.84 versus € 1.44 in the last year.

Working Capital and Cashflow

Working Capital

As at the balance sheet date, PUMA’s working capital amounted to 658.2 million, increasing only by 2.9% compared to June 30, 2015, in spite of higher sales and business volumes. This development in working capital is the result of an increase of inventories (+9.0%) combined with a slight reduction of trade receivables (-1.6%) and a moderate increase of trade payables (+2.7%).

Cashflow:

The free cash flow before acquisitions improved significantly by 40.1% amounting to
€ -100.5 million.

Outlook 2016

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

Brand and Product Update

The UEFA Euro 2016 in France proved to be a great stage to showcase PUMA as an innovative and design driven sports brand. With an on-field presence of almost 40% across all matches, PUMA’s five participating teams secured a strong visibility with their kits featuring our apparel technology ACTV Thermo-R. While Switzerland and Slovakia reached the round of sixteen following passionate and decisive appearances, Italy made it to the quarter final beating former European Champion Spain. A clear highlight was France's Antoine Griezmann, who was voted Player of the Tournament by the UEFA after being the top scorer with six goals that he shot in his dual coloured PUMA Tricks boots. PUMA player Olivier Giroud was ranked third in the scoring table of the event, while European Champion Portugal's Rui Patricio emerged as the Goalie of the Tournament. They all sported the yellow-pink boots on the pitch, in addition to players like Cesc Fàbregas, Nolito, Gianluigi Buffon, Giorgio Chiellini, Adam Lallana and Grzegorz Krychowiak. 

In the English Premier League, Leicester City Football Club made the unthinkable happen at the end of the season in May. The "Foxes" became the first PUMA team to take the Premier League title after an extraordinary season, while PUMA-sponsored Arsenal FC secured the second rank. Both teams qualified for the UEFA Champions League.

In the run-up to the Olympic Games in Rio this August, PUMA signed a partnership with the Athletics Association of Barbados (AAB) as the supplier of performance race and training wear along with all the federation apparel needs through the next major championships. With Jamaica, Cuba, Grenada, Dominican Republic and the Bahamas already in PUMA’s Carribbean stable, signing Barbados continues a focus on an area of the world where fast reigns supreme.  The Barbados Track & Field team will first wear PUMA apparel in Rio, with the deal seeing PUMA support the Caribbean nation through the next two IAAF World Championships.

In our Motorsport category, PUMA released the latest edition to its DISC footwear franchise, the futuristic looking metallic silver BMW X-CAT DISC. This striking shoe showcases PUMA’s reinvented DISC technology of internal wires that tighten the upper, which was originally launched in 1991 and provides ultimate comfort and a snug fit. In Formula One, our three partnered teams Mercedes AMG Petronas, Scuderia Ferrari and Red Bull Racing are currently holding the top ranks in both the drivers’ and the constructors’ standings in this year’s supberb season so far. 

In our Running category, we continued to expand our successful IGNITE franchise: the all-new IGNITE Dual for Autumn-Winter 16. It provides ultimate flexibility and cushioning for mid- and long-distance runners, thanks to the special sole with IGNITE FOAM and grooves. It is also available in IGNITE Dual Disc and IGNITE Dual evoKnit iterations. 

 

Strategy Update

In the first half of 2016, PUMA continued to make inroads into becoming the Fastest Sports Brand in the World. The two major football tournaments - Copa America and the UEFA Euro 2016 - on the one side and the further accelerated success of our women’s initiative "The Future is Female" on the other were the dominating factors for us.

With our five sponsored teams as well as our high profile players sporting our new PUMA TRICKS boots and gloves, PUMA achieved great visibility through these events. We have been leveraging this momentum with our key retail partners. Building on the impressive sell-through results of TRICKS during the 2014 world cup, we generated healthy sell-in of TRICKS this year. Many key retailers including Intersport, Dick’s Sporting Goods and Kamo supported them with very visible in-store executions.

The overwhelming reactions to our FENTY PUMA by Rihanna runway show during the New York Fashion Week and especially the social media buzz further strengthened the FENTY footwear launches. The FENTY Trainer and the CREEPER’s new color ways were sold out in days, the Fur Slide in hours or minutes. In a partnership with Kylie Jenner, a key influencer for young women in the US and new PUMA brand ambassador, PUMA has launched another revolutionary silhouette, the FIERCE performance training shoe. All of these products generated great sell-in and sell-out results, which continue to strengthen our relationship with key retailers. This includes Foot Locker’s women-only banner SIX:02, that has decided to dedicate additional space to PUMA shop-in-shops in their stores.

In June, we announced our partnership with New York City Ballet (NYCB), one of the leading dance companies in the world, as their official off-stage active wear partner. Starting in October 2016, a number of dancers from the New York City Ballet will be featured in several PUMA creative and marketing campaigns that will highlight women in sports and culture. In addition, PUMA and New York City Ballet will explore ways for PUMA to support a variety of NYCB initiatives, including the ballet company’s education, audience development and dancer health and wellness efforts.

PUMA strongly believes in the power of sports that improves people's health around the world every day. As we want to make a difference in the lives of people, including the most disadvantaged ones, we have partnered with Right To Play. Right To Play is a global organization, founded by four-time Olympic gold medalist Johann Olav Koss, and uses the transformative power of play to educate and empower children facing adversity. This year PUMA supports Right To Play with a donation and delivery of equipment such as 10,000 footballs to children in need.

Financial Calendar FY 2016

The financial releases and other financial information are available on the Internet at „about.puma.com“.<

Notes to the editors:

• The financial reports are posted on www.about.puma.com.
• PUMA SE stock symbol: 
  Reuters: PUMG.DE, Bloomberg: PUM GY,
  Börse Frankfurt: ISIN: DE0006969603– WKN: 696960

Notes relating to forward-looking statements:

This document contains forward-looking statements about the Company’s future financial status and strategic initiatives. The forward-looking statements are based on the current expectations and assumptions of the management team. These are subject to a certain level of risk and uncertainty including, but not limited to those described above or in other disclosures, in particular in the chapter Risk and Opportunity Management in the Group Management Report. In the event that the expectations and the assumptions do not materialize or unforeseen risks arise, the Company's actual results can differ significantly from expectations. Therefore, we cannot assume responsibility for the correctness of these statements.

2016 Third Quarter Facts

• Sales increase by 11% currency adjusted to € 990 million (+8% reported) with growth across all regions
• Improved sell-­through in own retail and at key retail partners
• Gross profit margin flat at 45.8% despite stronger US-­Dollar
• Moderate increase in OPEX of 4%
• Strong improvement (+47%) in operating result (EBIT) to € 60 million
• Great performance of PUMA athletes at the Rio Olympics with sprint star Usain Bolt dominating the event and winning three gold medals for the third consecutive time

2016 Nine Month Facts

• Sales up 10% currency adjusted to € 2,669 million (+6% reported) based on growth across all regions and product segment
• Slight decrease of gross profit margin to 46.1%, caused by stronger US-­Dollar in 2016 compared to last year
• Improved operating leverage with OPEX increasing by only 3%
• Operating result (EBIT) up 33% to € 114 million
• Earnings per share at € 4.48 compared to € 2.77 last year
• Continued strong visibility of PUMA’s women’s category through FENTY PUMA by Rihanna fashion shows in New York and Paris and launch of the “DO YOU” communication platform with model, actress and activist Cara Delevingne

Bjørn Gulden, Chief Executive Officer of PUMA SE

“We have seen a solid improvement in the sell-­through of our products at retail in the third quarter. New product lines like the Fierce, the Platform, the Ignite Dual and the Fenty lines have shown to be “right” for the consumers and our marketing with personalities like Rihanna, Kylie Jenner, Cara Delevingne and, of course the unbelievable performance of Usain Bolt, have increased our brand heat. More consumers are buying our new products at full price and retailers are therefore more satisfied with us. It is now our job to use this momentum to get more of the right PUMA products on their shelves.

Sales developed a little better than expected, gross margin came in as expected and this combined with a strong discipline on the cost side resulted in a nice improvement in our earnings. With three months to go we feel confident in fulfilling our guidance and do now expect our full-­year EBIT to be in the upper half of the already communicated range of € 115 million to € 125 million.”

Third Quarter 2016

Sales:

PUMA continued on its growth path in the third quarter 2016. Sales increased by 10.7% currency adjusted to € 990.2 million (+8.3% reported). All regions contributed to this growth with EMEA and the Americas being the main drivers. Footwear once again performed particularly well with a currency adjusted increase of 16.4%.

The EMEA region continued its growth, supported by strong demand for footwear products.Sales rose by 11.9% currency adjusted to € 408.6 million (+8.7% reported) with France and Germany being particularly strong.

Sales in the Americas region improved by 12.2% currency adjusted to € 342.9 million (+5.5% reported). Solid growth was delivered by both North and Latin America. However, the weakness of Latin currencies, notably the Argentine Peso, continued to impact the sales development in Euro terms.

The Asia/Pacific (APAC) region achieved sales of € 238.7 million, representing a rise of 6.9% currency adjusted (+11.7% reported). China and India delivered double-­digit growth.

Footwear continued to drive the strongest growth among the three product segments, showing an improvement of sales for the ninth quarter in a row. Sales were up 16.4% currency adjusted (+12.3% reported) and amounted to € 458.8 million, with success coming from the Ignite franchise as well as Fierce and Fenty products within the Running, Training and Sportstyle categories.

Coming in at € 377.4 million, sales in the Apparel segment increased by 10.3% currency adjusted (+8.8% reported). Major gains were achieved in the Sportstyle category supported by our women’s business.

The development of Accessories was impacted by a weaker performance of PUMA’s accessories business in the United States. Sales decreased by 2.4% currency adjusted to € 154.0 million (-­3.2% reported).

Gross Profit Margin and Operating Expenses:

In spite of the ongoing negative currency impact from a stronger US-­Dollar, PUMA managed to maintain the gross profit margin at 45.8%. This was achieved mainly through sourcing improvements, selective price adjustments, and an improved Footwear product mix. The Footwear margin increased by 190 basis points from 41.2% to 43.1%. The Apparel margin decreased from 49.8% to 48.2% and the Accessories margin fell from 49.1% to 48.4%.

Operating Result and Net Earnings:

The operating result (EBIT) went up by 46.7% to € 60.3 million. This is mainly due to the operating leverage as sales grew stronger than operating expenses, while the gross profit margin remained flat.

Net earnings nearly doubled compared to last year´s result coming in at € 39.5 million, representing an increase of 98.0%. This result translates into earnings per share of € 2.64 compared to € 1.34 in the third quarter of 2015.

Nine Months 2016

Sales:

As PUMA was able to keep up the strong momentum seen in the first half-­year 2016, sales for the nine-­month period improved by 10.2% currency adjusted to € 2,668.5 million (+6.4% reported). The main drivers behind this positive development were EMEA and APAC and in segment terms Footwear and Apparel.

The growth dynamic in the EMEA region was particularly high, where sales went up 13.2% currency adjusted to € 1,084.3 million (+9.8% reported). This increase is largely due to the performance of France and the DACH area (Germany, Austria, Switzerland) which achieved a double-­digit growth. Within the EEMEA region, Russia and South Africa performed very well. Apparel achieved major gains, partly driven by the football business.

In the Americas region, both North and Latin America posted a solid upturn in currency adjusted sales, increasing by 7.6% to € 946.6 million. In Euro terms, however, sales grew only by 0.4%, as the weakness of currencies in Latin America, notably in Argentina, continued to have a negative impact on reported sales.

The development of sales in the Asia/Pacific (APAC) region was particularly positively influenced by China, which performed strongly across all distribution channels. The region’s sales improved by 9.3% currency adjusted to € 637.7 million (+10.3% reported).

All product segments performed well in the nine-­month period. Footwear improved by 11.0% currency adjusted to € 1,211.0 million (+5.7% reported). This development was based on strong demand in the Running, Training, Sportstyle and Fundamentals categories.

Apparel delivered the highest growth rate among the three product segments. Sales came in at € 966.6 million, representing an increase of 12.0% currency adjusted or 8.6% in Euro terms. All product categories contributed to this success.

Accessories were up 5.4% currency adjusted to € 491.0 million (+3.8% reported). EMEA and Asia/Pacific showed higher sales in this product segment, while the development was negative in the Americas, caused by the United States.

In the nine-­month period, PUMA generated own and operated retail sales (including eCommerce) of € 551.1 million. This is equivalent to an increase of 11.9% currency adjusted and represents a share of 20.6% of total sales versus last year’s figure of 20.4%. The sales increase is based on a healthy like-­for-­like sales growth, a higher number of retail stores in operation as well as a significant momentum of the eCommerce business.

Gross Profit Margin and Operating Expenses:

The gross profit margin of 46.1% represents a slight decrease of 30 basis points compared to 46.4% in the first nine months of 2015. This is solely due to the negative currency impact on our cost of sales from the stronger US-­Dollar. The negative currency effect was partly offset by sourcing improvements, selective price adjustments and an improved product mix in the Footwear segment. In Footwear, the gross profit margin was up 70 basis points at 42.8% (last year 42.1%), while in the Apparel and Accessories segment, the margins decreased from 50.4% to 49.1% and from 49.6% to 48.1% respectively.

Operating expenses (OPEX) increased only slightly by 3.4% and amounted to € 1,127.9 million. This is the result of intensified marketing activities for the UEFA Euro 2016 and the Olympic Games in Rio, as well as an extended network of own and operated retail stores. All other operating functions managed to keep costs stable.

Operating Result and Net Earnings:

The operating result (EBIT) improved significantly by 32.9% and amounted to € 113.5 million. With sales growing faster than operating expenses, PUMA was able to benefit from operating leverage.

Net earnings improved by 61.5% and came in at € 67.0 million (last year: € 41.5 million).                                                                This result translates into earnings per share of € 4.48 compared to € 2.77 in 2015.

Working Capital

PUMA’s working capital increased by only 2.8% to € 731.2 million despite higher sales and business volumes as well as the extension of the retail store network. Inventories were up 3.7% at € 715.0 million and trade receivables increased by 3.3% to € 584.1 million, underpinning a strong performance of working capital management.

Outlook 2016

With PUMA’s positive performance over the first nine months of 2016, we continue to expect a currency adjusted high single-­digit increase of net sales, a gross profit margin on previous year’s level (45.5%), and an increase of currency adjusted operating expenses in a mid to high single-­digit range for the full-­year. In light of the operating result (EBIT) achieved in the first nine months, we now expect the full-­year EBIT to be within the upper half of the already communicated range of € 115 million to € 125 million.

Brand and Marketing

In July, we unveiled the first PUMA home and away kits for Mexican football club Chivas, officially called Club Deportivo Guadalajara, one of Mexico’s two biggest clubs.

At the Summer Olympics in Rio, PUMA sprint star Usain Bolt accomplished his “Triple Triple” by winning an Olympic Gold medal in each of the three sprinting events. In total, ten Gold, five Silver and nine Bronze medals were the yield of the PUMA equipped Olympic teams of Jamaica, Bahamas, Cuba and Grenada alongside the Track & Field teams of Switzerland, the Dominican Republic and Barbados.

In September, the first and much-­awaited FENTY PUMA by Rihanna collection came into stores worldwide. Later that month, Rihanna presented her Spring/Summer 2017 FENTY PUMA by Rihanna collection at the Paris Fashion Week. This second collection takes inspiration from 18th century France during the time period of Louis XVI and fuses with a street style vibe.

In our Women's category, we launched our campaign “DO YOU”, which aims to inspire confidence in women around the world. The campaign is spearheaded by international model, actress, and activist Cara Delevingne who joined PUMA’s growing list of influential female ambassadors. It features a cross-­category product range from PUMA’s Running and Training and Sportstyle collections.

We also announced a new partnership with Abel Tesfaye also known as The Weeknd as a new Global Brand ambassador and creative collaborator. The Grammy-­winning artist and style icon is the perfect fit to headline PUMA’s latest Sportstyle campaign, ‘Run The Streets’ at the beginning of this month.

In Motorsport, our partnered Formula 1 team MERCEDES AMG PETRONAS won the Constructors’ Championship for the third time in a row. Nico Rosberg is in the pole position to clinch his first world championship crown at the end of the season and is followed by the rest of PUMA-­equipped drivers from Red Bull and Ferrari in the drivers’ standings.

Financial Calendar FY 2017:

February 9, 2017: Financial Results FY 2016
The financial releases and other financial information are available on the Internet at „about.puma.com“.

Notes to the editors:

• The financial reports are posted on www.about.puma.com.
• PUMA SE stock symbol:
  Reuters: PUMG.DE, Bloomberg: PUM GY,
  Börse Frankfurt: ISIN: DE0006969603– WKN: 696960

Notes relating to forward-­looking statements:

This document contains forward-­looking statements about the Company’s future financial status and strategic initiatives. The forward-­looking statements are based on the current expectations and assumptions of the management team. These are subject to a certain level of risk and uncertainty including, but not limited to those described above or in other disclosures, in particular in the chapter Risk and Opportunity Management in the Group Management Report. In the event that the expectations and the assumptions do not materialize or unforeseen risks arise, the Company's actual results can differ significantly from expectations. Therefore, we cannot assume responsibility for the correctness of these statements.

SALES GROWTH ACROSS ALL REGIONS AND PRODUCT SEGMENTS AND IMPROVED OPERATING RESULTS IN FOURTH QUARTER AND  FULL YEAR

2016 Fourth-Quarter Facts

• Sales increase by 10% currency adjusted to € 958 million (+9% reported) with growth across all regions and product segments
• Gross profit margin up 180 basis points at 44.6%
• OPEX increase by 13% caused by higher marketing and retail investments as well as higher sales related variable costs
• Improvement in operating result (EBIT) by 30% to € 14 million
• FENTY PUMA by Rihanna Creeper awarded "Shoe of the Year 2016" by Footwear News in the US

2016 Full-Year Facts

• PUMA’s full-year sales up 10% currency adjusted to € 3,627 million (+7% reported)
• Gross profit margin improved by 20 basis points to 45.7%, despite stronger US Dollar
• Improved operating leverage with OPEX increasing by only 6%
• Operating result (EBIT) up 33% to € 128 million
• Earnings per share increased from € 2.48 last year to € 4.17 in 2016
• Strong improvement in Free Cashflow from € -99 million 2015 to € 50 million 2016
• An increase of the dividend from € 0.50 to € 0.75 per share for the financial year 2016 will be proposed
• Strong performances by PUMA athletes at the UEFA EURO 2016 and Olympic Games in Rio

• Continued strong visibility of PUMA’s women’s category through “FENTY PUMA by Rihanna” - fashion shows and launch of the “DO YOU” communication platform with model, actress and activist Cara Delevingne

Bjørn Gulden, Chief Executive Officer of PUMA SE:

“The fourth quarter developed as expected with solid growth in both sales and EBIT. We have seen a continued increase of interest in our products and brand both from consumers and retailers. The sell-through of our new product launches has been good.

2016 ended as we had hoped with revenue growth in all regions and product segments as well as a significant increase in EBIT and net earnings. The year has confirmed, that our strategy has been right and we will continue to invest in our mission of becoming the Fastest Sports Brand in the World.

We feel confident that we will continue to see revenue growth and a significant increase in earnings again in 2017.”

Fourth Quarter 2016

Sales:

PUMA’s sales growth continued in the fourth quarter 2016, improving by 10.1% currency adjusted to € 958.2 million (+9.0% reported) with positive developments in all regions and product segments.

The EMEA region performed extraordinarily well, reporting a double-digit growth rate of 13.4% currency adjusted to € 298.4 million (+10.4% reported). This was achieved in spite of strong comparable sales last year (Q4 2015 +21% currency adjusted).

In the Americas region, sales increased by 9.9% currency adjusted to € 393.0 million with growth in North- and Latin America. In Euro terms sales grew by 6.7%, as the weakness of currencies in Latin America, notably in Argentina, continued to have a negative impact on reported sales.

The Asia/Pacific (APAC) region performed well with sales increasing by 6.8% currency adjusted to € 266.8 million (+11.1% reported). China was the main driver of this positive development.

Footwear continued to drive the strongest growth among the three product segments, showing an improvement of sales for the tenth quarter in a row. Sales were up 17.6% currency adjusted (+15.3% reported) and amounted to € 416.0 million, with success particularly coming from the Sportstyle and Fundamentals categories.

Apparel showed moderate growth in the quarter with sales increasing by 3.7% currency adjusted to € 366.6 million (+3.3% reported), as sales in Q4 last year were driven by the Euro Cup replica business.

Sales in Accessories improved by 7.5% currency adjusted to € 175.6 million (+7.5% reported), driven by a strong performance of our North American accessory business in the fourth quarter.

Gross Profit Margin and Operating Expenses:

Despite ongoing negative currency impacts from a stronger US Dollar, PUMA managed to improve the gross profit margin in the fourth quarter by 180 basis points to 44.6%. This was achieved mainly by selective price adjustments and lower discounts. In addition, a higher share of own retail sales, which carry a higher margin, had a positive effect on the gross profit margin. The Footwear margin increased by 300 basis points from 38.6% to 41.6%. The Apparel margin was stable at 46.5% and the Accessories margin improved from 43.7% to 47.6%.

Operating expenses (OPEX) increased by 12.6% to € 416.6 million. The increase of operating expenses in the quarter is mainly due to further marketing and retail investments as well as higher sales related variable costs in connection with the growing retail and eCommerce revenues.

Operating Result and Net Earnings:

The operating result (EBIT) grew by 30.2% to € 14.1 million. This development is a result of the increase of sales and the improvement of the gross profit margin in the quarter.

Taxes on income in the fourth quarter showed an income of € 0.4 million (prior year: expense of € -2.8 million) as a consequence of the adjustment of tax provisions, after tax audits for prior years were finalized. The net earnings attributable to non-controlling interests increased from € 11.1 million to € 17.2 million because of the strong business development of our North American joint ventures - distributing accessories in the region -during the fourth quarter.

As a consequence, net earnings came in at € -4.6 million compared to € -4.3 million last year, translating into earnings per share of € -0.31 after € -0.29 in the fourth quarter of 2015.

Full Year 2016

Sales:

In the financial year 2016, PUMA’s sales improved by 10.2% currency adjusted to € 3,626.7 million (+7.1% reported). The currency-adjusted increase was slightly above the sales guidance for the full year 2016, which had anticipated currency adjusted growth to be in the high single-digit range. All regions and product segments contributed to the positive development with Footwear being the main growth driver.

Sales in the EMEA region showed the highest increase, rising by 13.2% currency adjusted to € 1,382.7 million (+9.9% reported), with France and the DACH area (Germany, Austria, Switzerland) having developed particularly well. From a product perspective, all three product segments recorded double-digit growth in the region.

In the Americas region, sales rose by 8.3% currency adjusted to € 1,339.6 million. Both, North- and Latin America contributed to this positive development. In Euro terms sales grew only by 2.2%, as the weakness of currencies in Latin America, notably in Argentina, continued to have a negative impact on reported sales.

The Asia/Pacific region was also a strong driver of the overall growth of PUMA in 2016. Sales were up by 8.5% currency adjusted to € 904.5 million (+10.5% reported). China with a double-digit increase and India with a strong momentum supported the growth in the region.

Sales in PUMA's Footwear segment amounted to € 1,627.0 million, representing an improvement of 12.6% currency adjusted (+8.0% reported). The Running, Sportstyle and Fundamentals categories all achieved major gains.

Apparel sales grew by 9.6% currency adjusted to € 1,333.2 million (+7.1% reported) with a positive development in all product categories except Motorsport.

Accessories sales rose by 5.9% currency adjusted to € 666.5 million (+4.7% reported) thanks to a continued strong socks and bodywear business, in spite of a flattish golf hardware business.

Including eCommerce, PUMA's own and operated retail sales increased by 12.5% currency adjusted to € 794.3 million. This represents a share of 21.9% of total sales in 2016 (21.4% in 2015). The reasons for this rise are a like-for-like sales growth in our retail stores and the extension of our retail store network, as well as a strongly growing eCommerce business.

Gross Profit Margin and Operating Expenses:

The gross profit margin improved 20 basis points from 45.5% last year to 45.7% for the full year 2016. Selective price adjustments and sourcing improvements were the main drivers that more than offset the negative currency impact from the stronger US Dollar in 2016 compared to 2015. This was especially true in the Footwear segment where margins increased from 41.2% to 42.5%. However, Apparel margins eased from 49.3% to 48.4% and the Accessories margins declined slightly from 48.0% to 47.9% in 2016.

Operating expenses (OPEX) increased by 5.7% and amounted to € 1,544.5 million in 2016. The increase is mainly due to additional marketing activities as well as investments in our own retail store network and IT-infrastructure. Other operating functions managed to keep costs stable.

Operating Result and Net Earnings:

The operating result (EBIT) improved by 32.6% from € 96.3 million to € 127.6 million. This result is slightly above our EBIT guidance for the full year 2016 of a range between
€ 115 million and € 125 million. With sales growing faster than operating expenses, PUMA was able to benefit from operating leverage, while in addition the gross profit margin improved slightly.

The financial result improved from € -11,2 million last year to € -8,7 million this year due to lower interest payments and lower expenses from currency conversion.

The tax rate for the full year 2016 came in at 25.7% compared to 27.5% last year. The adjustment of tax provisions, after tax audits for prior years were finalized, contributed to the decrease of the tax rate.

Net earnings improved by 68.0% and came in at € 62.4 million (last year: € 37.1 million). This result translates into earnings per share of € 4.17 compared to € 2.48 in 2015.

Working Capital

Despite higher sales and business volumes as well as a higher number of owned and operated retail stores, PUMA’s working capital increased only slightly by 0.7% to € 536.6 million. This development underpins the strong performance of our working capital management. Inventories were up 9.4% at € 718.9 million in order to ensure product availability and to support further growth as well as to meet the increased need for products due to our additional retail stores. Trade receivables rose moderately by 3.3% to € 499.2 million and trade payables were up 11.7% to € 580.6 million.

Cashflow

The free cash flow before acquisitions improved significantly by € 154.8 million from a cash outflow of € -98.3 million last year to a cash inflow of € 56.5 million in 2016. This achievement is a result of higher earnings before taxes (EBT) combined with an improved working capital development, in spite of the extended business volume. As of December 31, 2016, PUMA’s cash position amounted to € 326.7 million compared to € 338.8 million at the balance sheet date last year.

Dividend proposal of € 0.75

Based on PUMA’s positive business development in 2016 with an improvement of profitability and cashflow, the Administrative Board will propose a € 0.25 increase of the dividend to € 0.75 per share for the financial year 2016 at the Annual General Meeting on April 12, 2017.

Brand and Strategy Update

The results achieved in 2016 show that PUMA is starting to gain momentum: Throughout the year, we focused and invested in events, products, and campaigns that took us yet again a step closer to becoming the Fastest Sports Brand in the World. For us, 2016 was particularly exciting and characterized by the following major highlights: The football tournaments Copa América and UEFA Euro 2016, the Olympic Games in Rio and the fantastic development of our women’s category.In our Teamsport category, PUMA’s five participating teams in the UEFA Euro 2016 in France secured an on-field presence of almost 40% across all matches. A major highlight was France’s Antoine Griezmann, who was voted ‘Player of the Tournament’ by UEFA after being the top scorer. Stars like PUMA player Olivier Giroud, who ranked third in the tournament's scoring table and Portugal’s Rui Patrício, who was voted the Goalkeeper of the Tournament, sported PUMA’s yellow-pink "Tricks" boots on the pitch.

Last week, PUMA player Adam Lallana of Liverpool F.C. was named 2016 England Player of the Year following a vote among members of the England Supporters club.Last Sunday, PUMA-sponsored Cameroon beat Egypt to win their fifth Africa Cup of Nations football title with a fabulous goal in the 89th minute of the final for a 2-1 come-from-behind victory

In our Running category, a memorable event for PUMA were last summer's Olympics in Rio, where PUMA sprint star Usain Bolt again showed a spectacular, world-class performance by winning an Olympic Gold medal in each of the three sprinting events. Ahead of the 16th edition of the IAAF Track and Field World Championships scheduled to be held in London in summer this year, we are excited to see continued amazing performances of the Fastest Man in the world.

In our Motorsport category, Nico Rosberg was crowned F1 champion, while PUMA-partnered teams MERCEDES AMG PETRONAS, Red Bull and Scuderia Ferrari claimed the first three places in the Constructors’ Championship. Another highlight was set by our partner BMW Motorsport and their driver Marco Wittmann, who clinched the 2016 DTM Championship for the second time after 2014.

Our iconic success style, the "FENTY PUMA by Rihanna" Creeper, was repeatedly sold out worldwide within mere hours of hitting the stores as soon as we launched new colourways throughout the year. The Creeper has demonstrated again and again that it is currently the hottest piece of footwear around and has consequently been named “the only choice for the 2016 Shoe of the Year” by Footwear News.

In terms of strategy, we have continued to make progress along our five key priorities: creating brand heat for PUMA as the Fastest Sports Brand in the World, further improving the product engine with a strong pipeline of exciting and commercial products, optimizing PUMA’s distribution quality through stronger sell-through with key retail partners. Furthermore we enhanced our organizational speed and business processes as well as strengthened PUMA’s women’s business. These priorities will be at the center of our strategy going forward. While we still have a lot of work ahead of us, we feel that 2016 took us a big step forward within each of these areas.

We have further strengthened our brand heat by leveraging our brand ambassadors and cultivating the hype in social media. We are proud to have long-standing partnerships with some of the world’s greatest athletes, such as the Olympic legend Usain Bolt, who has been with PUMA for 15 years. Additionally, we have new relationships with up-and-coming stars and talents like the charismatic Olympic Silver-and Bronze-medalist André De Grasse, the one-of-a-kind Cara Delevingne, the R&B star and style icon The Weeknd, and of course, Rihanna who made a major impact in 2016.

On the product side, we introduced a number of key styles. The distinctive PUMA Fierce has been an instant hit in terms of distribution, media coverage and most importantly sales. Other new key footwear styles were the performance shoe IGNITE Dual and the IGNITE Evoknit, a style for Street Running that comes with a form-fitting, mid-height knitted upper. Our FENTY collection, that features apparel and footwear, was very well received by the press, retail partners and our consumers. Independent research has shown that we have gained market shares in most geographies and channels, showing that PUMA products are again resonating well with consumers, which was also echoed by our retail partners.

To improve the quality of distribution, we continued to strengthen our relationships with key strategic accounts and built new partnerships with strong retailers in both established and emerging markets. One of the best examples is our long-standing strong relationship with Foot Locker in North America. For several years, we have now rolled out our jointly developed retail concept “PUMA Lab”. This has helped to lift product sell-through well beyond the “PUMA Lab” doors, especially in Foot Locker's women-only banner Six:02, where PUMA sales more than doubled in 2016. PUMA has also gained traction with other important customers in the US, and also in Europe, where PUMA returned to double-digit growth rates in many markets. In China, our retail partners such as Belle and the YY Group opened around 200 additional PUMA doors in 2016.

PUMA’s owned and operated retail sales developed quite strongly throughout the year based on a like-for-like sales growth, an increased number of own retail stores in operation, as well as significant momentum in our eCommerce business. We also continued our worldwide roll-out of the “Forever Faster” store layout, which contributed to this positive development. We will further use this momentum with our most important accounts, own retail stores and eCommerce across all geographies in 2017 to drive our sales growth.

The improvements in systems, processes and organizational speed over the last two years, led to even more flexibility in our supply chain in 2016. A standardized global IT foundation allows for faster and better communication. We have relocated employees closer to our suppliers' production sites, increased local-for-local production in countries such as India and Mexico and moved into a new highly-automated warehouse in the United States. This all will ensure faster lead times for key markets in line with our strategy of being Forever Faster.

Our Women's business received a lot of attention in 2016. Building on PUMA’s fashion credibility and sports authenticity, as well as profound understanding of the modern female athletic consumer, we have positioned PUMA to address the segment “where the gym meets the runway”. Women worldwide are more and more participating in sports, while taking inspiration from athletic wear for their everyday wardrobe. In 2016, PUMA successfully introduced cross-category collections by merging sports and fashion. With our “DO YOU” campaign, which aims to inspire confidence in women around the world, we are changing the way we address the female consumer. In addition, we are collaborating with a number of famous female brand ambassadors such as Rihanna, Kylie Jenner, Cara Delevingne and the New York City Ballet to tell a powerful story. The reactions to our "FENTY PUMA by Rihanna" runway shows during the New York and Paris Fashion Weeks have been overwhelmingly positive and have created major social media buzz. Our women-specific collections are among the best performers in terms of both sell-in and sell-through. Many major retailers provided additional space for our female collections. In many accounts, the success of our women’s line was actually a door opener to expand our shelf space with men’s and kids styles.

Outlook 2017

Based on the development in 2016, where we saw ongoing sales growth and an improvement of profitability, we are confident that PUMA can continue the momentum that it has gained as a brand. In 2017, we will further invest in marketing and continue our Forever Faster brand communication to increase our brand heat by leveraging our ambassadors and to position PUMA as the fastest sports brand in the world. Our global marketing activities will again be centered around athletes, including the World’s Fastest Man and sports icon Usain Bolt, star strikers like Sergio Agüero and Antoine Griezmann, Golfstar Rickie Fowler, Arsenal Football Club, Borussia Dortmund as well as global entertainment assets like multi-platinum recording artist, designer and entrepreneur Rihanna, Kylie Jenner, Cara Delevingne and the R&B star and style icon The Weeknd.

We will continue to work very closely with our retail partners. With our improved product offering including recently launched styles such as the Fierce, Basket Heart, IGNITE Dual and IGNITE Evoknit as well as our FENTY collection we will continue to work hard to get more of the right PUMA products on the shelves of our retail partners. In combination with further investments in our own retail and eCommerce business we will support our direct to consumer business. This should enable us to attract new customers and to increase our market share in most geographies as well as to improve our sell-through across all product categories.

For the full year 2017 we expect that currency-adjusted net sales will increase at a high single-digit rate. The gross profit margin is forecasted to improve to approximately 46.0% (2016: 45.7%). Operating expenses (OPEX) are expected to increase at a mid to high single-digit rate, as PUMA will continue to invest in marketing, in the modernization and expansion of the owned and operated retail store network and in IT-infrastructure. At the same time, management will continue to place a strong emphasis on strict control of other operating costs.

At the current exchange rate levels, PUMA’s management expects that the operating result (EBIT) will improve significantly in 2017, thanks to operating leverage, as sales will increase stronger than OPEX, combined with a slightly improved gross profit margin. EBIT for the full year 2017 is therefore expected to come in between € 170 million and € 190 million. Net earnings will also continue to improve significantly in 2017.

PUMA’s management is optimistic that 2017 is another important year with great opportunities and that PUMA is well positioned to carry the brand’s positive momentum into 2017 and beyond.

Financial Calendar FY 2017

The financial releases and other financial information are available on the Internet at „about.puma.com“.

Notes to the editors:

• The financial reports are posted on about.puma.com.
• PUMA SE stock symbol: 

Reuters: PUMG.DE, Bloomberg: PUM GY,
Börse Frankfurt: ISIN: DE0006969603– WKN: 696960

NOTES RELATING TO FORWARD-LOOKING STATEMENTS: 

This document contains forward-looking statements about the Company’s future financial status and strategic initiatives. The forward-looking statements are based on the current expectations and assumptions of the management team. These are subject to a certain level of risk and uncertainty including, but not limited to those described above or in other disclosures, in particular in the chapter Risk and Opportunity Management in the Group Management Report. In the event that the expectations and the assumptions do not materialize or unforeseen risks arise, the Company's actual results can differ significantly from expectations. Therefore, we cannot assume responsibility for the correctness of these statements.

“With Bob we have found a leader within the PUMA family who understands not just the North American market but also PUMA globally,” said Bjoern Gulden, CEO of PUMA.   “I am convinced that Bob is the right person to continue the current momentum for the brand.”

In 2010, Philion led the acquisition and integration of Cobra Golf, and under his leadership the combined COBRA PUMA GOLF brand has seen immense growth, continuing to deliver a full 360 portfolio of game-changing products that help golfers of all levels enjoy the game.

Philion replaces Jay Piccola who is retiring from PUMA North America after a remarkable career of nearly 20 years of continuous service to PUMA.  He became President of the region in 2000 and through his leadership, he and his team built PUMA North America into what it is today.  Piccola will remain within the PUMA Family as a Non-Executive Director of the board for PUMA North America.

The new partnership was announced at a joint press conference in Mönchengladbach by the club’s manager Stephan Schippers, Borussia Mönchengladbach sports director Max Eberl and General Manager PUMA DACH Matthias Bäumer. Referring to the historical success story from 1976 to 1992 and the new common goals, the partnership runs under the slogan “What belongs together comes together".

Borussia Mönchengladbach Manager Stephan A.C. Schippers: “The contract with PUMA is not only of strong emotional significance for us, but is also a landmark step into the future. As a world-renowned and popular sports brand, PUMA has a great level of expertise in the development of functional team sport collections and in the distribution of licensed products. We look forward to great joint campaigns, starting in the 2018/19 season.”

Max Eberl, Sports Director Borussia Monchengladbach: “Borussia’s greatest sports successes in the 1970s are strongly associated with PUMA. We are therefore very pleased to be working with PUMA once again from the 2018/19 season on and to hopefully build upon our past successes.” 

Bjørn Gulden, PUMA CEO: “We are proud to be the new partner of Borussia Monchengladbach. We have a great and successful history with the club. Gladbach plays a fast and dynamic football, which is fun to watch. Its impressive academy, great fans and the image of this traditional club make Monchengladbach the perfect match for PUMA. We look forward to this new partnership!“

Matthias Bäumer, Area General Manager PUMA DACH adds: “We are pleased that we were able to bolster our portfolio by adding one of the most traditional and successful clubs in the German Bundesliga. Our partnership with Borussia Mönchengladbach will not only strengthen our position as one of the leading football brands in Germany. It will also help us to expand our teamsport business with our trade partners. PUMA and Borussia Mönchengladbach: this partnership stands for years of success and is a story that we will continue in a creative and passionate way.“

PUMA was Gladbach’s official jersey supplier from 1976 to 1992. Already in 1967, the sports brand started to supply the team with shoes, and later with the legendary track jackets and trousers. PUMA supported Borussia during its most successful time. Together, they celebrated five German championship titles as well as one German Cup and two UEFA Cup victories during that period.

Borussia Monchengladbach is PUMA´s second German top club in addition to Borussia Dortmund. PUMA’s football portfolio is comprised of top international and long-established football clubs such as Arsenal FC, Girondins Bordeaux, Leicester City, Rangers FC, Newcastle United, VfB Stuttgart as well as several national teams. From July 1 2018, PUMA will also be the official technical supplier of Olympique de Marseille. PUMA´s football portfolio also includes some of the world´s best players, such as Antoine Griezmann, Olivier Giroud, Sergio „Kun“ Agüero, Marco Reus, Julian Weigl, Cesc Fàbregas, Mario Balotelli, Héctor Bellerín und Yaya Touré.

In the first quarter 2017, consolidated sales increased currency adjusted by approx. 15% (approx. 18% in reported terms) to € 1,005 million compared to € 852 million in the first quarter last year. The operating result (EBIT) in the first quarter 2017 increased by approx. 70% to approx. € 70 million (Q1 2016: € 41.3 million).

In light of the strong first-quarter increase in sales and profitability as well as the positive business outlook for the current year 2017, PUMA raises the full-year guidance for its consolidated sales and operating result (EBIT). The Management now expects that sales will increase currency adjusted at a low double-digit percentage rate (previous guidance: currency adjusted increase at a high single-digit percentage rate). The operating result (EBIT) is now anticipated to come in between € 185 million and € 200 million (previous guidance: between € 170 million and € 190 million). In line with the previous guidance, the Management still expects that net earnings will improve significantly in 2017.

A complete overview of PUMA’s business development for the first quarter 2017 will be published on April 25, 2017.

UPGRADE OF THE FULL-YEAR GUIDANCE FOR 2017

• Sales increase by 15% currency-adjusted to € 1,005 million (+18% reported), with all regions showing double-digit growth and Footwear being the main growth driver
• Gross profit margin improves slightly to 47.1%
• EBIT rises by 70% to € 70 million mainly due to strong sales development
• Net earnings and earnings per share increase by 92% to € 50 million and € 3.32, respectively
• Borussia Monchengladbach and Olympique de Marseille signed as of season 2018/19

Bjørn Gulden, Chief Executive Officer of PUMA SE

“Thanks to good sell-through to the end consumer, both in our owned and operated retail and with our key retail partners, our sales in Q1 developed above our expectation. For the first time in the PUMA history, we achieved sales exceeding € 1 billion in a quarter. Our EBIT also developed very positively with a growth of 70% to € 70 million. This stronger than expected start of the year further shows that PUMA is on the right path. Therefore we have raised our outlook for the full year to low double digit growth in revenue and the full-year EBIT to be between € 185 million and € 200 million.”

Sales Development

PUMA's sales growth continued in the first quarter of 2017. Sales increased by 15.4% currency-adjusted to € 1,005.1 million (+18.0% reported), compared to € 851.9 million in the previous year. All regions supported the sales growth showing a double-digit increase. Footwear remained the main growth driver.

The gross profit margin improved slightly by 30 basis points from 46.8% in the first quarter 2016 to 47.1%. The increase was due to selective price adjustments and further improvements in sourcing.

Operating expenses rose by 12.5% and amounted to € 406.8 million in the first quarter 2017. That increase was driven by intensified marketing activities, investments in own retail stores and higher sales-related variable costs. Other operating functions kept the costs stable.

The operating result (EBIT) increased by 70.1% to € 70.2 million, as sales grew stronger than operating expenses, supported by a slightly higher gross profit margin.

Net earnings improved by 92.2% to € 49.6 million (prior year: € 25.8 million) and earnings per share were up correspondingly at € 3.32 compared to € 1.73 in the first quarter 2016.

Working Capital

PUMA’s working capital rose by only 4.3% from € 768.4 million to € 801.8 million, despite the significant increase of sales and business volume.

Outlook 2017

In light of the strong first-quarter increase in sales and profitability as well as the positive business outlook for the current year 2017, PUMA raises the full-year guidance for its consolidated sales and operating result (EBIT).The management now expects that sales will increase currency-adjusted at a low double-digit percentage rate (previous guidance: currency-adjusted increase at a high single-digit percentage rate). The guidance for the gross profit margin remains unchanged (improvement to approximately 46.0%; previous year: 45.7%). Operating expenses for the full-year 2017 are now expected to increase at a high single-digit percentage rate (previous guidance: mid to high single-digit percentage rate).As a consequence the operating result (EBIT) is now anticipated to come in between € 185 million and € 200 million (previous guidance: between € 170 million and € 190 million). In line with the previous guidance, the management still expects that net earnings will improve significantly in 2017.

Financial Calendar FY 2017:

The financial releases and other financial information are available on the Internet at „about.puma.com“.

Notes to the editors:

• The financial reports are posted on about.puma.com.
• PUMA SE stock symbol:

Reuters: PUMG.DE, Bloomberg: PUM GY,
Börse Frankfurt: ISIN: DE0006969603– WKN: 696960

Notes relating to forward-looking statements:

This document contains forward-looking statements about the Company’s future financial status and strategic initiatives. The forward-looking statements are based on the current expectations and assumptions of the management team. These are subject to a certain level of risk and uncertainty including, but not limited to those described above or in other disclosures, in particular in the chapter Risk and Opportunity Management in the Group Management Report. In the event that the expectations and the assumptions do not materialize or unforeseen risks arise, the Company's actual results can differ significantly from expectations. Therefore, we cannot assume responsibility for the correctness of these statements.

“With Right To Play, we have found a highly credible partner to drive social change worldwide and in Germany”, says Bjørn Gulden, CEO of PUMA. “Right To Play shares our values in sports and we are proud to support Right To Play in transforming the lives of children and young people through the unique power of sports and play.”

Community Engagement is part of PUMA’s 10FOR20 sustainability targets to create positive impact. As part of this cooperation, PUMA has donated 9,000 footballs for Right To Play programs in nine countries including Ghana, Pakistan and Thailand . On April 27, PUMA hosted the first internal Community Engagement day at the company’s headquarters in Herzogenaurach, Germany. Employees from various departments had the opportunity to experience the power of sports for learning and development. In order to demonstrate how individuals can make a positive impact, Right To Play shared their expertise of play-based learning approaches.

"We are very excited about this partnership and grateful to PUMA for their support.", says Right To Play Founder and four-time Olympic speed skating champion Johann Olav Koss. "Beyond the financial support and in-kind donations, we value the expertise and engagement of PUMA’s employees to increase quality of education for children and youth through play and sports."

PUMA will continue to promote employee volunteering and fundraising initiatives with Right To Play. “This partnership is not only about what we do, but also how we do it. Every PUMA employee is invited to get involved and contribute to empower children and youth worldwide.” says Dietmar Knoess, Global Director HR at PUMA.

Right To Play

Right To Play is a global organization committed to improve the lives of children and youth affected by conflict, disease and poverty. Right To Play was founded in 2000 by four-time Olympic gold medalist and social entrepreneur Johann Olav Koss. The organization pioneered a unique play-based approach to learning and development which focuses on quality education, life skills, health, gender equality, child protection and building peaceful communities. Right To Play operates in 20 countries, advocating for children’s rights and transforming the lives of more than one million children each week using play and sports. Right To Play Germany is supported by a number of leading athlete ambassadors, such as Nico Hulkenberg, Anna Schaffelhuber, Severin Freund and Uschi Disl (www.righttoplay.de).