Herzogenaurach, germany - April 24, 2018
STRONG SALES AND EBIT GROWTH IN THE FIRST QUARTER

PUMA SLIGHTLY RAISES FULL-YEAR GUIDANCE FOR 2018

2018 First-Quarter Facts

  • Sales increase of 21.5% currency-adjusted to € 1,131 million (+12.5% reported) with double-digit growth in all regions and product segments
    Gross profit margin up by 110 basis points to 48.2%
  • Operating expenses (OPEX) increase only 7.5%, further improving our operating leverage
  • Operating result (EBIT) improves significantly to € 112 million (last year: € 70 million)
  • The highly exclusive Phenom Lux, the first shoe designed by Selena Gomez and released in limited quantities, will benefit the Lupus Research Alliance
  • PUMA will be offical sponsor of AC Milan (season 2018/19) and of Brazilian top club Sao Paulo Palmeiras (season 2019)
  • PUMA signs long-term agreements with World Cup qualifiers Senegalese and Serbian Football Associations

Bjørn Gulden, Chief Executive Officer of PUMA SE:

“We started the year with both first-quarter sales and profitability (EBIT) coming in stronger than we had expected. The double-digit sales growth in all regions and product segments, including an exceptionally high growth in Asia, led to a very strong 21.5% organic sales increase. Operating result even grew by 60% to € 112 million due to higher sales, an improvement in our gross margin of 110 basis points and a tight OPEX management. 

Because of an uncertain business environment caused by volatile currency rates and the difficult economic trade environment, we raised our outlook for the full year only slightly. We now expect our sales to grow 10% to 12% in local currency (previous 10%) and EBIT to come in between € 310 to € 330 million (previous € 305 to € 325 million).”

 

Sales Development:

First Quarter 2018

PUMA's sales growth continued in the first quarter of 2018. Sales increased by 21.5% currency-adjusted to € 1,131.1 million (+12.5% reported) compared to € 1,005.1 million last year. Due to the strength of the Euro against all other major currencies during the first quarter 2018, there is a 9% negative difference between sales growth in Euro and constant-currency terms.

All regions and product segments supported the sales growth with a currency-adjusted double-digit increase. Particularly our Asia/ Pacific region, driven by China, achieved a strong sales growth of 34.8% in the first quarter. Footwear continued to be the main growth driver followed by Apparel and Accessories. Running and Training as well as Sportstyle were the categories with the strongest growth rates.

The gross profit margin improved by 110 basis points from 47.1% to 48.2%. The increase came from a favourable regional sales mix, higher sales of new products with a better margin and further sourcing improvements.

Operating expenses (OPEX) grew by 7.5% to € 437.3 million in the first quarter. The increase was mainly caused by higher marketing and retail investments as well as higher sales-related variable costs.

The operating result (EBIT) increased by 59.9% from € 70.2 million to € 112.2 million in the first quarter 2018 due to a strong sales growth, a higher gross profit margin and an improved operating leverage. This corresponds to an EBIT-margin of 9.9% compared to 7.0% in the first quarter last year.

Net earnings went up by 35.8% to € 67.4 million (last year: € 49.6 million). This translates into earnings per share of € 4.51 compared to € 3.32 in the first quarter 2017.

 

Working Capital

Strong currency effects and our continued focus on working capital management led to a decrease of working capital of 1.3% to € 791.0 million. Omitting these currency impacts, working capital would have grown by approx. 10%, lower than our growth in business. Inventories rose only slightly by 1.3% to € 760.4 million and trade receivables grew by only 5.8% to € 685.0 million. Trade payables decreased by 8.0% to € 471.4 million.

 

Outlook 2018

The first quarter saw a strong increase in sales and profitability, but several uncertainties in our business environment have recently developed. This includes adverse and volatile currency developments, political instabilities as well as the uncertain trade environment between the USA and China. Therefore, we adjusted our guidance for the full year 2018 only slightly. PUMA now expects that currency-adjusted sales will increase between 10% and 12% (previous guidance: currency-adjusted increase by approximately 10%). The operating result (EBIT) is now anticipated to come in between € 310 million and € 330 million (previous guidance: between € 305 million and € 325 million). In line with the previous guidance, the Management still expects that net earnings will improve significantly in 2018.

Rounding differences may be observed in the percentage and numerical values expressed in millions of Euro since the underlying calculations are always based on thousands of Euro.

Rounding differences may be observed in the percentage and numerical values expressed in millions of Euro since the underlying calculations are always based on thousands of Euro.

Financial Calendar FY 2018

February 12, 2018Financial Results FY 2017
April 12, 2018Annual General Meeting
April 24, 2018Quarterly Statement Q1 2018
July 26, 2018Interim Report Q2 2018
October 23, 2018Quarterly Statement Q3 2018


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.

Herzogenaurach, germany - April 25, 2018
PUMA AND FOSSIL GROUP SIGN PARTNERSHIP AGREEMENT FOR WATCHES AND WEARABLES

Sports company PUMA and Fossil Group, Inc. have signed a global license partnership agreement for the design, development and distribution of PUMA watches and wearables until 2028.

PUMA and Fossil Group will collaborate to develop an extensive range of PUMA-branded watches and smartwatches, with products planned to be launched in 2019.

Bjørn Gulden, CEO of PUMA says: “Time makes or breaks athletes, which is why the right partner for watches and wearables is particularly critical to our brand. We are pleased to team up with Fossil Group, whose strong focus on innovation will help us make products that fit the needs of our consumers and the world’s fastest athletes.”

“PUMA is one of the world’s leading sports brands. We are excited to partner with them and bring our world class design and distribution capabilities to the PUMA watch collection,” said Kosta Kartsotis, CEO of Fossil Group.

The new products will be available, amongst others, through select department stores, specialty retailers and e-commerce channels in Fossil Group’s extensive global network.

PUMA's previous collaboration for PUMA watches with MYWA Swiss Watch & Jewelry ltd ended in December 2016.

Photo Credits: Conné/ PUMA
Herzogenaurach, germany - April 26, 2018
PUMA APPOINTS MARTIN BENDA AS GENERAL COUNSEL

Sports company PUMA has appointed Dr. Martin Benda (49) as General Counsel (Global Director Legal Affairs) with immediate effect. In this position, Martin Benda will report directly to PUMA CFO Michael Laemmermann.

After finishing his PhD in industrial law at the Georg-August University in Göttingen, Martin started his professional career as Legal Counsel at Mannesmann Mobilfunk (now Vodafone). In 2001, Martin joined The Coca-Cola Company, where he gathered extensive experience and knowledge in positions as Legal Director GB & Ireland and Senior Legal Counsel Central & Eastern Europe.

The trained lawyer has a comprehensive expertise in competition-, trademark-, marketing-, employment- and property law.

Martin Benda succeeds Jochen Lederhilger, who served in this role since 2006. Lederhilger has decided to leave the company after 20 years to pursue his career as a self-employed lawyer.

Photo Credits: Christoph Maderer/ PUMA
Herzogenaurach, GERMANY - July 26, 2018
Strong Quarter with 15% growth in sales and 33% growth in EBIT

PUMA confirms EBIT target for the full year 2018

2018 SECOND QUARTER FACTS

  • Sales increase by 15% currency-adjusted to € 1,049 million (+8% reported) with double-digit growth in all regions and product segments
  • Gross profit margin improves to 48.6% mainly due to more sales of new products carrying a higher margin and positive currency effects
  • Operating expenses (OPEX) increase 11% due to higher sales related variable costs, higher marketing and retail investments
  • Operating result (EBIT) up by 33% to € 58 million (last year: € 43 million)
  • PUMA share included in MDAX
  • Governance structure of PUMA SE changed from monistic SE to dualistic SE
  • Long-term partnership with Belgian football star Romelu Lukaku announced
  • Antoine Griezmann and Lukaku claim second and third Top Scorer rank at World Cup
  • PUMA announces re-entry into Basketball category

2018 HALF-YEAR FACTS

  • Sales increase by 18% currency adjusted to € 2,180 million; reported growth is only 10.5% due to the negative impact from currency translation
  • Gross profit margin up 160 basis points at 48.4%
  • Operating expenses (OPEX) increase 9% related to intensified marketing activities, higher sales related variable costs and higher retail investments
  • Operating result (EBIT) improves by 50% from € 114 million to € 170 million
  • Net earnings increase from € 71.5 million last year to € 98.5 million and earnings per share increase from € 4.79 last year to € 6.59 respectively
  • Women’s category continues successful “Do You” campaign

BJØRN GULDEN, CHIEF EXECUTIVE OFFICER OF PUMA SE:

“The second quarter developed positively for us with sales growing organically 15% and EBIT increasing 33%. All regions and all product divisions posted double digit organic growth. The continued strength of the Euro gave us headwind in reported sales, but along with other currency effects, this also impacted our gross margin positively. The first six months of the year showed major shifts in product trends and consumer demand, especially for footwear. But we feel that our “fast attitude” and quick reaction time allowed us to continue our growth. We got very positive feedback to our plans of re-entering the Basketball category and both - the announcements of our new NBA players and the revelation of the product - were well received from retailers and basketball fans. The World Cup in Russia was a good event for us with PUMA players Antoine Griezmann and Romelu Lukaku making it almost to the top of the scorer list in second and third place. The launches of the collections for our new top clubs AC Milan, Olympique de Marseille and Borussia Mönchengladbach were further highlights and have shown our commitment to football. Despite the changes in product trends and the uncertain business environment caused by volatile currency rates and difficult global trade environment, we feel confident that we will reach our full-year EBIT target between €310 million and € 330 million which is a growth of around 30%.”

Second Quarter 2018

PUMA's sales growth continued in the second quarter of 2018. Sales rose by 15.0% currency-adjusted to € 1,049.2 million. All regions contributed with double-digit increases. Footwear continued to be the main growth driver and Apparel and Accessories also grew at a double-digit rate. However, currency translation effects due to the strength of the Euro against most other currencies negatively impacted the sales development in reported terms (+8.3%).

The gross profit margin improved to 48.6% in the second quarter (last year: 46.5%). The increase is mainly related to more sales of new products with a higher margin, further sourcing improvements and positive currency effects.

Operating expenses (OPEX) rose by 11.1% to € 456.3 million in the second quarter. The increase of operating expenses is due to further marketing activities and higher sales related variable costs based on increased sales volumes and higher retail investments related to the increase of our store count.

The operating result (EBIT) increased from € 43.4 million last year to € 57.6 million due to a strong sales growth combined with an improved gross profit margin.

Net earnings increased from € 21.9 million to € 31.1 million and earnings per share were up from € 1.46 in the second quarter last year to € 2.08 correspondingly.

First Half-Year 2018

Sales for the first half-year 2018 were up by 18.3% currency adjusted to € 2,180.3 million. All regions showed double-digit growth with Footwear being the main growth driver. The strong Euro against most other currencies significantly impacted our reported sales growth, that amounted to 10.5% in the first half of 2018.

Including eCommerce, PUMA's own and operated retail sales increased by 23.7% currency adjusted to € 490.0 million. This represented a share of 22.5% of total sales for the first half of 2018 (21.8% in the previous year). The reasons for the rise are a like-for-like sales growth in our own retail stores, the extension of our retail store network and a continued strong growth of our eCommerce business.

The gross profit margin improved by 160 basis points from 46.8% to 48.4% in the first half of 2018. The increase came mainly from more sales of new products with a higher margin and further sourcing improvements. In addition, positive currency effects materialized in the second quarter.

Operating expenses (OPEX) increased 9.3% and amounted to € 893.7 million. The increase was driven by higher sales related variable costs, intensified marketing activities and investments in the refurbishment and expansion of our own retail store network.

The operating result (EBIT) grew by 49.6% from € 113.6 million last year to € 169.8 million in the first half of 2018 due to a strong sales growth and a higher gross profit margin. This corresponds to an EBIT-margin of 7.8% compared to 5.8% in the first half last year.

Net earnings improved by 37.8% and came in at € 98.5 million (last year: € 71.5 million). This translates into earnings per share of € 6.59 compared to € 4.79 in the first half of 2017.

Working Capital

Currency effects and our continued focus on working capital management led to a decrease of working capital of 2.1% to € 685.2 million. Without these currency effects, working capital would have increased by approximately 6%, which is lower than the growth in our business. Inventories were up 4.7% at € 890.5 million and trade receivables grew by 12.8% to € 633.6 million. On the liabilities side, trade payables and other current liabilities were up by 16.2% to a total of € 1,026.8 million.

Cashflow

As a result of the increase in earnings before taxes (EBT) and the positive working capital development, the free cash flow improved from € -117.9 million to € -103.3 million in the first half of 2018. Cash and cash equivalents increased, as did our bank liabilities due to the dividend payment (€ 186.8 million) made in the second quarter. As a result, our net cash position declined to € 88.8 million (last year: € 152.4 million).

Outlook 2018

Our full-year guidance for EBIT remains unchanged and we continue to expect the operating result to come in between € 310 million and € 330 million. This is now the combined effect of a currency-adjusted increase of net sales between 12% and 14% (previous guidance: between 10% and 12%), a gross profit margin improvement of approximately 100 basis points, and a high single-digit rate increase in OPEX related to additional investments in sports marketing and higher sales related variable costs. Management still expects that net earnings will improve significantly in 2018.

Change of Governance Structure

Following the distribution of approximately 70% of the PUMA shares by Kering S.A. to its shareholders, PUMA’s free float has increased from approximately 14% to 55%. The distribution took place on May 16th and was accompanied by investor communication, including road shows and a capital markets day, on PUMA’s side. The feedback from the financial community confirms the confidence into PUMA’s strategy and opportunities.

PUMA’s Annual General Meeting resolved on April 12, 2018 to replace the existing monistic management system of the Company with the dualistic management system and to amend the Articles of Association accordingly. The dualistic management system consists of the Management Board (Vorstand) as the management body and the Supervisory Board (Aufsichtsrat) as the supervisory body. The changes to the Articles of Association were entered into the Commercial Register of the Local Court in Fürth on July 9, 2018. Accordingly, the change in the governance structure became effective on that day. The Management Board consists of Bjørn Gulden (CEO), Michael Lämmermann (CFO) and Lars Sørensen (COO). The Supervisory Board consists of Jean-Francois Palus (Chairman), Jean-Marc Duplaix, Béatrice Lazat, Thore Ohlsson elected by the shareholders and Martin Köppel as well as Bernd Illig elected by the employees.

Brand and Strategy Update

Thanks to our partnered athletes and teams as well as our other brand ambassadors, PUMA successfully strengthened both its sports and lifestyle positioning in the first half of 2018.

A major highlight was the announcement of PUMA’s re-entry into the Basketball category. Jay-Z has taken the role of Creative Director for PUMA Basketball. In this capacity, he will be overseeing the creative strategy, creative marketing, and product design for all basketball-related products. Marvin Bagley, Deandre Ayton, Zhaire Smith, Michael Porter Jr. and Rudy Gay are the first NBA players to wear performance PUMA basketball shoes on court in 20 years. In addition to a clear commitment to performance on the court, PUMA will leverage its credibility in the cultural environment around basketball, which is getting increasing attention of American consumers. Our re-entry into the Basektball category is clearly a commitment to the North American market and a building block to strengthening our business also in other performance categories.

In Football, all eyes were on the FIFA World Cup 2018 in Russia. Our four national teams - Uruguay, Switzerland, Serbia and Senegal – along with a variety of outstanding individual players ensured a high visibility of the PUMA brand during the tournament. Half of our partnered teams reached the second stage, while two out of the top three scorers of the tournament, Antoine Griezmann (2nd) and Romelu Lukaku (3rd), are PUMA players. Griezmann, who led the French team to victory with his goal, was named “FIFA Man of the Match” in the World Cup final. Together with Olivier Giroud and Belgian striker Romelu Lukaku, Griezmann ensured a high visibility of our brand in the final matches of the competition. Our players wore PUMA’s latest technologies, the PUMA FUTURE and PUMA ONE, in customized editions.

In club football, the end of the 2017/18 season was marked by excellent performances of our players on the pitch. All goals of the UEFA Europa League final were scored by PUMA players, as Griezmann and Gabi shot the three goals to Atlético Madrid’s victory. In Mexico, PUMA-partnered team Santos Laguna won the Liga MX Clausura, the closing tournament of the top level Mexican football league.

With Olympique de Marseille, A.C. Milan, Borussia Möchengladbach and São Paulo football club Palmeiras joining the roster of the brand’s prestigious football clubs, PUMA will strengthen its position in international football for the upcoming seasons. The 2018/19 jerseys of the newly signed clubs have just been revealed and received positive fan and media feedback.

In Running and Track & Field, our sponsored athletes impressed with world class performances. The 19-year old Cuban Juan Miguel Echevarria took the first place at the Stockholm Diamond League Meeting with his incredible long jump of 8.83m, which was chosen as the “2018 Season Highlight” by the IAAF. At the XXI Commonwealth Games, PUMA athletes won an impressive total of eleven medals. Olympic and World Championship silver medalist Will Claye won the men’s Triple Jump by setting a new world-leading mark with 17.43m at the World Indoor Championships in Birmingham. Earlier this year, we enlarged our portfolio of federations by signing a long-term partnership with the Norwegian Athletic Federation. Furthermore, PUMA is proud to have two new top athletes joining its roster: French sprinter and European record holder in 100m Jimmy Vicaut and Italian high jumper Gianmarco Tamberi.

In Motorsport, our three partnered F1 Teams MERCEDES AMG PETRONAS, Scuderia FERRARI and RED BULL RACING continue to dominate in Formula One, being currently ranked among the top three positions, both in the drivers’ and the constructors’ championships.

Our strategy has continued to focus on our five priorities: Increasing brand heat, offering a competitive product range, proposing a leading offer for women, improving the quality of distribution and strengthening our organizational infrastructure. We feel that PUMA is on the right track as our strategy, marketing and products are starting to show results. This has been once again confirmed by improved financial results, increased sell-through performance and the continued positive feedback from our retail partners.

Working with the right influencers and letting them communicate on behalf of our brand has become an essential part of our strategy: We have contracted new athletes, cultural icons and influencers, who have helped to further fuel PUMA’s brand heat, such as Selena Gomez, the most followed person on Instagram. Selena has been working alongside PUMA's design team to create exciting products for our female consumers.

Our Women’s category continued our successful “Do You” campaign with its powerful ambassadors, including Cara Delevingne and the dancers of the New York City Ballet. Key styles behind our women’s footwear business were the training shoes PHENOM, MUSE and MUSE ECHO, while the newly launched DEFY showed promising first results.

Four-time Formula One World Champion Lewis Hamilton embodies the Men’s training proposition “24/7”. With this product line, PUMA has redefined its performance philosophy, offering products that perform everywhere from the gym to the street – 24/7. As part of this collection, PUMA just launched the training shoe Mantra FUSEFIT.

Another footwear success was the recently launched THUNDER, which won the hearts of the fashion-forward crowd with its disruptive design, and its bulky, unapologetic look. The first two product drops sold out within hours.

Quality of distribution remains a focus for PUMA. We continue to give high priority to the benefit of our retail partners. We work hard every day to ensure that our contribution to their business is positive and further improving. Feedback from our retail patners continues to be good. Retailers in most channels have started to dedicate more shelf space to PUMA, allowing for our business to be based on a broader selection of styles.

We have also continued to improve our organizational structure and infrastructure. One aspect with high visibility is the completion of our extended headquarters building in Herzogenaurach, that now hosts more than 1,000 employees together under one roof in a state of the art facility. This not only allows for faster communication and better alignment, but also adds to our great team spirit.

Herzogenaurach, Germany - October 1, 2018
from runway to gym, adriana lima joins the puma family

Supermodel, super mogul, and boxing badass teams up with global sports brand to be their newest women's training ambassador

Today, global sports brand PUMA is proud to announce a long-term partnership with the International supermodel, Adriana Lima. She will be the new ambassador for their women’s training business and represent the brand in marketing campaigns around the globe.

Adriana Lima is a fantastic mom, a role-model to millions, and a real badass. If you’ve never seen her train, you are missing out. How else would she stay in shape to headline those fashion shows? It’s thanks to her relentless and hardcore training regimen. From runway to gym, from high fashion to sports – she is the real deal.

“Supporting, encouraging, and empowering women is important to me; this is one of the reasons I wanted to partner with PUMA. They’ve worked so hard to encourage women to be themselves and to show them that by working hard, you can accomplish anything,” said Adriana Lima. “People have seen me on runways and magazine covers – with this new partnership with PUMA, I want to share my personal training journey and what it takes for me to achieve a healthy balanced life.”

PUMA recognizes the strength, grace, and confidence of women. One of the brand’s objectives is to empower women by giving them the tools to accomplish their goals. It’s essential that they have tech-infused products with fashion-forward designs to help them work towards being a better version of themselves and the only way to be you is to do you.

“Adriana is such an inspiring, caring and real person. She is the embodiment of our women’s training business, if you follow her on Instagram, you’ll see that she loves sports, fitness, and most of all, boxing,” said Adam Petrick, Global Director for Brand and Marketing for PUMA. “We are very excited to have her be part of the PUMA family. She is a great addition to our roster of successful female leaders that have accomplished so much in their careers. She will help us inspire millions of women around the world to take the reigns of their lives and follow their dreams.”

Atlanta, USA - October 6, 2018
PUMA launches #REFORM to drive Social Change

Athletes and Artists support causes that matter most

Global Sports Brand PUMA has launched #REFORM, a new platform that will give activists from the worlds of sports, music and entertainment support in championing causes and encouraging conversations around issues such as universal equality and criminal justice reform.

 

#REFORM is directly inspired by Olympian Tommie Smith, and his “Silent Gesture” that sparked global debate around the issues of civil rights and universal equality at the 1968 Mexico City Olympics.

PUMA’s belief is that to achieve faster progress, a team is essential. Therefore, PUMA has created Team#REFORM. This is a collective of individuals who believe that progress toward universal equality needs to be achieved faster. To lead Team#REFORM, PUMA has selected Captains, including rapper Meek Mill (who will focus on criminal justice reform), and WNBA All-Star Skylar Diggins-Smith (gender equality), alongside Captain Emeritus, Tommie Smith (universal equality). The brand will also be partnering with entertainment company Roc Nation to spread the message of #REFORM through live and social engagement. Future #REFORM Captains will be named in the coming months.

PUMA’s goal is to go beyond inspiration and turn intentions into actions. #REFORM Captains will work with the brand to identify beneficiaries of #REFORM tactics, including product creation, recognition grants, and #REFORM Summits, where like-minded individuals will gather to promote an agenda for change.

In recognition of Tommie Smith’s lifetime of bravery, PUMA will present him with the first #REFORM AWARD this evening at the Tommie Smith Youth Initiative Gala. The award will be accompanied by a donation to the Tommie Smith Youth Initiative Foundation. This event will mark the kick off of PUMA’s #REFORM campaign.

On October 16th, to commemorate the 50th anniversary of the Silent Gesture at the 1968 Olympics, Team#REFORM Captains will call on PUMA brand ambassadors and all likeminded individuals to join Team#REFORM and celebrate Tommie’s achievements with the #THIRDSALUTE. The #THIRDSALUTE is a social media movement in which individuals challenge others to post an image of themselves with a raised fist, and make a donation to charities pursuing universal equality, including the American Civil Liberties Union (ACLU), an organization which has worked for more than 100 years to defend and promote the liberties enshrined in the United States Constitution. All donations from the #THIRDSALUTE will be matched by PUMA, up to $100,000 through December 31, 2018.

On the 16th, PUMA will also launch the “Power Through Peace” Collection, commemorating Tommie’s Silent Gesture, and featuring graphics designed by Lance Wyman, creator of the logo of the ‘68 Olympics. All profits from the sales of this collection will be donated to charities pursuing universal equality.

Throughout 2018/19 and beyond, PUMA will be working with #Reform Captains to launch other programs that will promote actions to further the goal of universal equality.

boston, masachusetts - October 16, 2018
PUMA launches #THIRDSALUTE

A social media campaign to raise money and awareness for charities promoting universal equality

Today, global sports company PUMA is supporting #THIRDSALUTE, a new social media movement through which it will generate funds for charities promoting universal equality and human rights.

#THIRDSALUTE will be kicked off by Olympic Champion Tommie Smith and is directly inspired by his famous silent gesture at the 1968 Olympic Games, exactly 50 years ago. After he received his gold medal, Smith bowed his head and raised his fist in a silent gesture, which drew attention to human rights abuses and discrimination. Upon leaving the stadium, he faced boos from the crowd, but he stood by his statement and bravely raised his fist a second time. #THIRDSALUTE will bring together celebrities from the worlds of sports and entertainment to post a picture of themselves online, raising their fists just like Tommie Smith did.

On 16 October, 10am EST, Tommie Smith has posted his first image on Instagram, challenging people whom he respects to join him in the salute and to challenge their friends. For each picture or video posted with the hashtag #THIRDSALUTE, PUMA will donate 1 USD, up to 100,000 USD, to the American Civil Liberties Union (ACLU), an organization which has defended the rights enshrined in the US Constitution for almost 100 years. PUMA hopes that through the multiplying effect of #THIRDSALUTE a much greater amount will be raised, while firmly putting universal equality and human rights in the spotlight of public debate. For donating to the ACLU, please go to aclu.org/pumareform.

Several PUMA athletes and ambassadors, such as US Basketball star Skylar Diggins-Smith, and pro footballers Romelu Lukaku, Mario Balotelli and Sergio Aguero joined in and supported the #THIRDSALUTE campaign by raising their fists on Social Media. 
 
#THIRDSALUTE is part of PUMA’s recently launched #REFORM campaign, which creates a platform for celebrities to campaign for the causes they care most about, such as universal equality, criminal justice reform and gender equality.

Herzogenaurach, germany - october 25, 2018
Strong Sales and EBIT growth continues in the third Quarter

PUMA slightly adapts full-year guidance for 2018

2018 THIRD-QUARTER FACTS

  • Sales increase by 14% currency-adjusted to € 1,242 million (+11% reported) with double-digit growth in the Americas and Asia/Pacific regions
  • Gross profit margin improves to 49.6% 
  • Operating expenses (OPEX) increase by 11% due to higher sales related variable costs and higher retail investments
  • Operating result (EBIT) improves by 28% to € 130 million (last year: € 101 million) and EBIT-margin rises to 10.5% (last year: 9.0%) 
  • Successful US pre-launch of Basketball in late September
  • PUMA signs supermodel Adriana Lima as women's training ambassador
  • PUMA adds international star-players to its roster, including Barcelona and Uruguay striker Luis Suárez, Axel Witsel (Belgian national team and Borussia Dortmund) and Dejan Lovren (Croatian national team and FC Liverpool)

2018 NINE-MONTH FACTS

  • Sales increase by 17% currency adjusted to € 3,422 million (+11% reported) with double-digit growth in all regions and product segments
  • Gross profit margin up by 150 basis points to 48.8% 
  • Operating expenses (OPEX) increase 10% related to intensified marketing activities, higher sales related variable costs and higher retail investments 
  • Operating result (EBIT) improves by 40% from € 215 million to € 300 million and EBIT-margin increases from 6.9% to 8.8% 
  • Net earnings rise from € 134 million last year to € 176 million and earnings per share increase from € 8.94 last year to € 11.77 respectively
  • Strong new style platforms Thunder and RS-0 established in the “chunky/ ugly shoe” category

Bjørn Gulden, Chief Executive Officer of PUMA SE: 
"The third quarter ended a little stronger than we had expected with sales growing organically by 14% to €1,242 Million and EBIT increasing by 28% to €130 Million. This growth was achieved by a double-digit increase in both Americas and Asia/Pacific and high-single digit growth in EMEA. This improvement was further strengthened by a very positive development in Apparel, which grew 27% in the quarter.
Although we saw very negative currency impacts in Turkey and Argentina, overall we experienced less headwind from currencies in sales than in previous quarters.
We still see large shifts in product trends and consumer demand, but feel we have reacted fast enough to continue our growth.
The prelaunch of Basketball for North America at the end of the quarter created a lot of 'noise' and although it is very early days, the sell-through of our first shoe model has been very positive. This investment in Performance Basketball and the “Culture” around Basketball is a strong commitment to both the performance and the sportstyle business in the North American market. 
Given the slightly stronger than expected third quarter and despite the uncertain business environment, with volatile currencies and an uncertain global trade environment, we now see our full-year organic sales growth between 14% and 16% and our full-year EBIT between €325 Million and € 335 million, which is a growth of at least 32% compared with last year."

Third Quarter 2018

PUMA's sales growth continued in the third quarter of 2018. Sales increased by 13.9% currency-adjusted to € 1,241.7 million (+10.7% reported). The Americas and Asia/Pacific regions contributed with double-digit increases, while growth in the EMEA region was at a high single-digit rate. The Apparel product segment was the main growth driver in the quarter, supported by new product launches in the Sportstyle, Teamsport and Motorsport categories. Footwear and Accessories grew at a high single-digit rate.

The gross profit margin improved by 150 basis points to 49.6% in the third quarter (last year: 48.1%). The increase is due to more sales of new products with a higher margin and further sourcing improvements as well as positive effects from the product mix related to Apparel.

Operating expenses (OPEX) increased by 10.6% to € 489.7 million in the third quarter. The increase of operating expenses is mainly due to higher sales related variable costs based on increased sales volumes and higher retail investments related to the increase of our retail store count. 

The operating result (EBIT) rose by 28.4% from € 101.2 million last year to € 129.9 million due to a strong sales growth combined with an improved gross profit margin. This corresponds to an improvement of the EBIT-margin from 9.0% last year to 10.5% in the third quarter this year.

The financial result in the third quarter (€ -9.3 million; last year: € -3.4 million) was significantly impacted by currency losses mainly in Argentina and Turkey due to the weakness of those currencies versus the Euro and the US-Dollar. Taxes on income came in at a normalized rate of 27.4% (last year: 28.9%). Due to the improved results of the PUMA companies in which external companies hold minority interests, the net earnings to be distributed to these minority shareholders increased to € -10.1 million (previous year: € -7.4 million) in the third quarter (Net earnings attributable to non-controlling interests).

Net earnings increased from € 62.1 million to € 77.5 million and earnings per share were up from € 4.16 in the third quarter last year to € 5.18 correspondingly. 

Sales for the nine-month period were up by 16.7% currency adjusted to € 3,422.0 million (+10.5% reported). All regions and product segments supported sales growth with a currency-adjusted, double-digit increase.

Including eCommerce, PUMA's own and operated retail sales increased by 22.5% currency adjusted to € 771.2 million. This represented a share of 22.5% of total sales for the first nine months of 2018 (21.7% in the previous year). The reasons for the rise are a like-for-like sales growth in our own retail stores, the extension of our retail store network and a continued strong growth of our eCommerce business.

The gross profit margin improved by 150 basis points from 47.3% to 48.8% in the nine-month period. The increase came mainly from more sales of new products with a higher margin and further sourcing improvements. In addition, positive currency effects materialized in the second quarter.

Operating expenses (OPEX) increased by 9.8% and amounted to € 1,383.4 million. The increase was mainly caused by higher sales related variable costs based on increased sales volumes, intensified marketing activities and investments in our own retail store network. 

Info Graphic about PUMA's 3rd Quarter Results

The operating result (EBIT) improved by 39.6% from € 214.8 million last year to € 299.8 million in the first nine months of 2018 due to a strong sales growth and a higher gross profit margin. This corresponds to an EBIT-margin of 8.8% compared to 6.9% in the nine-month period last year.

The financial result in the nine-month period (€ -22.7 million; last year: € -5.9 million) was strongly impacted by currency losses mainly in Argentina and Turkey. Taxes on income came in at a normalized rate of 27.6% (last year: 28.3%). Due to the improved results of the PUMA companies in which external companies hold minority interests, the net earnings to be distributed to these minority shareholders increased to € -24.5 million in the first nine months (previous year: € -16.2 million) (Net earnings attributable to non-controlling interests).

Net earnings grew by 31.7% and came in at € 176.0 million (last year: € 133.6 million). This translates into earnings per share of € 11.77 compared to € 8.94 in the first nine months of 2017.

 

Balance Sheet and Working Capital

Currency translation effects and our continued focus on working capital management led to a slight decrease of working capital of -0.1% to € 762.2 million. Without these currency effects, working capital would have increased by approximately 6%, which is lower than the growth in our business. Inventories were up by 11.6% to € 888.4 million and trade receivables rose by 3.7% to € 702.7 million. On the liabilities side, trade payables and other current liabilities increased by 15.5% to a total of € 1,012.6 million.

The one-off dividend payment this year and the refinancing of the PUMA group after the reduction of Kering’s shareholding in PUMA have led to major movements in current and non-current liabilities in the balance sheet. 

 

 

Outlook 2018

The third quarter of 2018 saw a continued strong increase of sales and profitability, which was slightly above our expectations. As a consequence and based on the outlook for the remainder of the year, we slightly adapt our guidance for the full year 2018. PUMA now expects that currency-adjusted sales will increase between 14% and 16% (previous guidance: currency-adjusted increase between 12% and 14%). The gross profit margin is still anticipated to improve by approximately 100 basis points, while we now expect that operating expenses (OPEX) will increase at a low double-digit rate related to higher sales related variable costs (previous guidance: increase at a high single-digit rate). The operating result (EBIT) is now expected to come in between € 325 million and € 335 million (previous guidance: between € 310 million and € 330 million). In line with the previous guidance, Management still expects that net earnings will improve significantly in 2018.

 

 

Financial Calendar FY 2018:

 

February 12, 2018 Financial Results FY 2017

April 12, 2018 Annual General Meeting 

April 24, 2018 Quarterly Statement Q1 2018

July 26, 2018 Interim Report Q2 2018

October 25, 2018 Quarterly Statement Q3 2018

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.
     
herzogenaurach, germany - october 29, 2018
puma appoints havas media as new global media agency of record

Global Sports Brand concludes extensive media review process. Relationship to start January 2019

Sports brand PUMA today announced the selection of Havas Media as the global agency partner for media buying and planning starting January 2019. This decision comes at the conclusion of an extensive global media review that was part of the company’s overarching strategy to transform its consumer marketing approach and deepen its legacy as one of the world’s leading sportswear brands.  

"This is an exciting time for PUMA as we continue to evolve our consumer marketing approach and how we reach our consumers.  We were impressed with Havas Media’s strong strategic skills and forward thinking,” said Adam Petrick, Global Director of Brand and Marketing for PUMA.  “They clearly demonstrated their understanding of our business, passion for our brand and ability to deliver unique media opportunities.”

“We’re fascinated with meaningful brands, and PUMA truly is one. Our teams felt close alignment on the role paid media should play for a global sports brand – data and performance marketing are increasingly important but it’s creative, strategic use of media that matters to consumers, and that can help the brand succeed,” said Peter Mears, Global CEO of Havas Media. “I’m extremely proud of our teams around the world who’ve shown PUMA the real power of our strategic skills in Havas Media and can’t wait to see the impact we will have.”

PUMA has been supported in the review process by Media Strategy Consultancy, ID Comms to ensure a fair and transparent process and to find the best fitting agency for the brand.

Cover Picture Credit: Conné/ PUMA

katowice, poland - december 10, 2018
puma takes leading role in industry's pledge to fight climate change

Sports company PUMA plays a leading role in thefashion industry’s comprehensive plan to reduce greenhouse gas emissions and avoid the worsteffects of climate change.

In preparation for the fashion industry’s charter presented at the UN Climate Change Conference in Katowice today, PUMA played an active role in developing the Charter by leading working groups and encouraging industry peers and partner vendors to join the initiative.

The latest reports by the Intergovernmental Panel on Climate Change (IPCC) have highlighted the need for urgent action, as global warming is happening at a faster pace than previously expected. This is why the fashion industry agreed a sector-wide plan of action, which goes well beyond the commitments made by any other industry, targeting net-zero emissions by 2050 and the reduction of greenhouse gas emissions by 30 percent by 2030.

“We are aware that more than 90% of PUMA’s Carbon Footprint is being generated in shared supply chains. If we want to reduce our supply chains’ carbon emissions, we need to work together with our industry peers. The Fashion Industry Charter for Climate Action provides a joint industry effort to support the goals of the Paris agreement. We appreciate that UN Climate has set up a global platform to call upon our industry peers to join the initiative,” said PUMA Chief Executive Officer Bjørn Gulden.

Battling climate change is an essential part of PUMA’s 10FOR20 sustainability strategy, which has already led to several concrete steps. As part of its commitments, PUMA will move to 90% renewable electricity for all of our owned and operated facilities by 2020, either by directly purchasing renewable electricity, or by purchasing renewable energy certificates.

To address the need to also reduce carbon emissions within the supply chain, PUMA will expand its current energy efficiency program, which it established together with the IFC in Vietnam and Bangladesh, to suppliers in other countries. PUMA’s commitment to reduce greenhouse gas emissions is supplemented by a sharp increase from 50% to 90% in the company’s targets for sourcing cotton and polyester from sustainable or
certified sources.

To more accurately assess the impact of such measures, PUMA has rolled out the Higg Index, a standardized tool to measure sustainability performance developed by the Sustainable Apparel Coalition, to all of its core suppliers globally.

 

Cover Picture Credits: sdecoret/ Fotolia

 

herzogenaurach, germany - december 14, 2018
vincent kompany drops leather shoes in favour of puma future

PUMA Football and citizens captain Vincent Kompany have signed a long-term partnership, which will see the Belgian defender hang up his leather shoes and step into the PUMA Future for his next game.

Having 87 caps for Belgium, Kompany has become a role model and unifying figure in his linguistically-divided home country, which came in third during the international tournament in Russia last summer.

Kompany, who helped his club win three league titles with his impressive defending statistics, winning over 1000 duels and making some 1500 clearances in the league alone, is well known for preferring all-leather boots.

For his partnership with PUMA, however, he will sport the PUMA Future, which combines state-of-the-art NETFIT technology with a form-fitting textile base material and knitted ankle sock for infinite lacing options.

“What is crazy is that I was a leather boot only guy till I tried Future. As soon as I laced up in them, I knew it would be an exciting boot to play in. I’m really looking forward to wearing them on the pitch and seeing how they evolve over the next few years,” said Vincent Kompany.

“I have always been an aggressive player, it is a big part of my game, so when a brand like PUMA approached me to work with them, I was incredibly happy, because for me PUMA is a brand that as well as having such a great heritage in football, creates brave and forward-thinking products,” he added.

Vincent Kompany will wear the PUMA Future ‘Stun Pack’ from the 14 of December.

westford, massachusetts, usa - january 18, 2019
PUMA Establishes New North American Headquarters

Move to larger, unified location at Assembly Row in Somerville, Mass. will provide for growth and best-in-class employee experience

As part of its growth, retention and recruitment strategy, sports company PUMA North America, Inc. today announced plans to establish a new North American headquarters in Somerville, Mass. in 2021. The new headquarters will bring together two PUMA offices, currently based in Boston and Westford.

“We’re excited to bring together our talented North American employees in Somerville, a diverse, vibrant city that reflects our values and culture, and will allow us to retain and recruit the best talent across our front and back-end operations,” said Bob Philion, President and CEO of PUMA North America. “This new headquarters will allow us to better collaborate, foster diversity of thought, creativity and innovation, and have fun while doing it.”
 
The new headquarters, located at 455 Grand Union Blvd., in Somerville, provides the company with five floors of office space totaling 150,000 square feet. PUMA intends to have approximately 550 positions at the location once the move is complete, representing a more than 20 percent growth of its workforce. There will also be a 19,000-square-foot roof deck, complete with a recreational area and basketball court. The facility provides employees access to a state-of-the-art fitness center, an on-location kids room, ample bike storage and a 2,300-square-foot balcony. The new space is steps away from the MBTA Orange Line Assembly Square stop and provides employees easy access to Assembly Row’s abundant dining, shopping and health and wellness benefits. PUMA has operated a retail location at Assembly Row since 2014.

“Our brand mantra, ‘Forever Faster,’ spans everything we do—from making to marketing and every discipline in between,” said Adam Petrick, Global Director of Brand and Marketing at PUMA. “We need to be faster than ever in the way we react and adapt. Somerville is a city buzzing with creative, diverse energy that will help us live out our ‘Forever Faster’ mentality.”
 
A long-term lease for the space—a soon-to-be-built 300,000-square-foot building—has been negotiated with developer and landlord Federal Realty Investment Trust. PUMA North America was represented by Michael Joyce at Cushman & Wakefield. Federal Realty was represented by Joe Flaherty at JLL. Assembly Row is easily accessible via Interstate 93 and the MBTA, providing ease of access for the company’s urban and suburban employees.
 
“We are excited and proud to welcome one of the world’s most recognizable brands to Somerville and look forward to introducing PUMA to our talented and diverse workforce,” said Somerville Mayor Joseph A. Curtatone. “An energetic, creative and forward-looking company like PUMA will fit right in with the innovation culture that is thriving here and continuing to grow.” 

To learn more about PUMA North America careers, visit our website.

 

Download the Media Kit below to get the press release and picture.

The picture shows an exterior rendering of PUMA’s new North American headquarters at Assembly Row in Somerville, Mass. The company will relocate there in 2021

Picture Rendering Credit: PUMA/ Federal Realty Investment Trust 

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