Herzogenaurach, Germany - April 4, 2019
PUMA to become Formula 1®’s exclusive retail partner at race weekends

Sports company PUMA has announced a long-term partnership with Formula 1® to become the exclusive merchandise retail partner from the start of the 2019 season. This year, PUMA stands and superstores will be present in 17 out of the 21 Grands Prix in the calendar.

Adding to the company’s impressive motorsport credentials, PUMA has gained the rights to design, produce and sell Formula 1-branded products trackside. Visitors to Formula 1 races across the globe will be able to purchase F1 and Grands Prix related products as well as all 10 teams’ merchandise from on-site PUMA stands and superstores during race weekends.  PUMA and its fully-owned subsidiary Branded will also retail official merchandise and accessories from Formula 1’s growing portfolio of consumer products licensees, such as Codemasters and BAPE. 

“PUMA has a long and proud history in motorsport, and we are very happy to take this a step further today. Our agreement with Formula 1 will allow us to connect with the fans directly at the races by offering them the best motorsport merchandise experience possible,” said PUMA CEO Bjørn Gulden. 

“We are always looking to enhance fans race day experience and to have such an experienced and creative partner such as PUMA on board to bring the latest items to our fans is something we are really excited about,” said Sean Bratches, Managing Director Commercial Operations, Formula 1®.

Branded, which already distributes PUMA replica merchandise and designs for leading F1 teams such as Scuderia Ferrari, Mercedes-AMG Petronas Motorsport, Aston Martin Red Bull Racing and Rich Energy Haas F1 Team, PUMA will now add F1 trackside retail to its offering. 

Since entering Formula 1 in 1999, PUMA has established itself as a leading motorsport supplier, providing team wear and race wear to the most successful Formula 1 teams as well as the motorsport divisions of BMW and Porsche in other racing series. 

Download the Press Release below.

Picture Credits: PUMA/ Conné
Herzogenaurach, Germany - April 10, 2019
PUMA BioEvolution shoe uniquely adapts to the body

Sports company PUMA today presented an experimental sports shoe as part of its BioEvolution project, which uses biologically active materials to uniquely adapt to the wearer’s foot.

The shoe, which is the first result of a collaboration with research organisation Fraunhofer Institute, will be presented at the “Materials Village” exhibition held by Material ConneXion Italia at Milano Design Week 2019. 

It features a biologically active layer of the shoe-upper that acts like a dense nanosensor net and at a microscopic level maps the areas of the foot which produce heat and sweat. This mapping then creates a matching ventilation pattern, or in other words, living micro-organisms selectively remove material to create a unique fit.

“The shoe is not unique by itself - it comes as a blank canvas. It evolves with you, when you start to wear it, and it becomes more and more an expression of your body,” said Charles Johnson, PUMA’s Global Director of Innovation. 

As PUMA’s BioEvolution technology is still at an experimental stage, no commercial version of the shoe is planned at present. PUMA has explored such materials and pioneered the use of biodesign in sportswear, following a research project with the MIT Design Lab which started in June 2017. The experimental outcomes of this collaboration were revealed for the first time at Milano Design Week last year.

The project has been conducted under the creative curation of Innovation by Design - a global, multidisciplinary design & strategy studio founded in 2014, as a MIT Design Lab spin-off.

For images and the Press Release download the Media Kit below.

All Picture Credits: Innovation by Design/ PUMA

 
herzogenaurach, germany - april 15, 2019
Puma becomes official partner of spanish football league "LaLiga"

Sports company PUMA has entered into a long-term agreement with the Spanish football league, LaLiga, to become the league’s Official Technical Partner. Starting from the 2019/20 season, PUMA will produce the official match ball for all games in Spain’s top-flight leagues; LaLiga Santander and La Liga 1|2|3.

With a total audience of 2.7 billion viewers in 183 countries annually and more than 80 million followers on social media, LaLiga is one of the world’s leading sport leagues. This sponsorship will significantly expand PUMA’s on pitch visibility and strengthen its position as a leading global football brand. 

Both companies share a long history but also a young spirit and a vision for growth that will be boosted by this alliance.

PUMA is adding LaLiga to a strong roster of PUMA football players, including some of the best players in LaLiga: Luis Suárez, Antoine Griezmann, Jan Oblak, Samuel Umtiti, Santi Cazorla, Marc Bartra, and Giovani Lo Celso. The start of the 2019/20 La Liga season will also see the addition of two new clubs: Girona FC and Valencia CF.

PUMA's values of being brave, confident, determined and joyful, fit perfectly with those of LaLiga: Teamwork, Overcoming, Equality, Respect and Tolerance, Fair Play and Authenticity. The two companies share an international vision, passion for having the best product and transforming society through the universal values of sport.

“We are extremely proud to have partnered with one of, if not, the best football league in the world,” said Johan Adamsson, PUMA’s Director of Sports Marketing. “The ball is the most essential element in football, this sponsorship is the epitome of performance. La Liga has some of the world’s best teams and players and this is another step in our efforts to achieve ‘No Football without PUMA and it ensures an even stronger global reach for our brand.”

Juan Carlos Díaz, LaLiga’s Marketing and Commercial Director added: "It is an honor for an historical sports brand like PUMA, that dresses great teams, important sportsmen and recognized artists, to want to associate with LaLiga, the best football national league in the World, and contribute all its technical quality to our ball, which is such an important element of our competition. We are convinced that this agreement will be very fruitful for both companies and will allow us to continue facing our future challenges."

For pictures and the Press Release download the Media Kit below.

herzogenaurach, germany - april 23, 2019
PUMA aims for 90% share of more sustainable materials by 2020
Company’s sustainability strategy is to focus on creating a substantial positive impact

“We are proud that we have reached our targets for more sustainable materials two years earlier than planned. We still have room for improvement, which is why, we have taken steps with our suppliers to sharply increase the amount of more sustainable materials in our products going forward,” said Stefan Seidel, Head of Corporate Sustainability at PUMA.

Following a previous target of 50%, PUMA now aims for 90% of all cotton and polyester used in its products to come from more sustainable sources by 2020, part of the company’s strategy not to focus on individual collections, but to create a substantial positive environmental impact throughout its product range.

“By focusing on PUMA’s entire range, we can make a much larger positive impact and save a considerable amount of natural resources,” Seidel added.

At the end of 2018, 50 % of all cotton and 66 % of all polyester used in PUMA apparel came from more sustainable sources. Such sources include bluesign certified polyester, a production standard which eliminates harmful chemicals from the production process and promotes resource efficiency, and cotton from the Better Cotton Initiative, an organisation seeking to improve the environmental, social and economic impact of cotton production.

In 2018, PUMA also reached its target of sourcing 90 % of its leather and paper/cardboard from more sustainable sources two years ahead of schedule, using FSC certified paper and cardboard as well as leather from tanneries with a medal rating of the Leather Working Group.

Through its 10FOR20 targets set in 2015, PUMA aims to improve its sustainability performance in ten areas including the environment and the wellbeing of workers in the factories of its suppliers. At the end of 2018, PUMA was on track with eight of the ten targets it had set.

For more information on PUMA’s sustainability performance, you may consult the company’s latest annual report, which is available on https://annual-report-2018.puma.com

 

The Press Release can be downloaded below.

herzogenaurach, germany - april 26, 2019
strong sales and ebit growth in the first quarter

Quarterly Statement Q1 2019

The Quarterly Statement can be downloaded (PDF) below.

2019 First-Quarter Facts

  • Sales increase by 15.3% currency-adjusted to € 1,319 million (+16.6% reported), driven by continued growth in all regions and product divisions
  • Gross profit margin improves by 80 basis points to 49.0% 
  • Operating expenses (OPEX) increase to € 511 million (last year: € 437 million) due to higher sales related variable costs, including logistics costs as well as higher marketing and retail investments 
  • Operating result (EBIT) improves by 27.0% to € 143 million (last year: € 112 million) 
  • PUMA signs the football clubs Manchester City and Valencia CF
  • PUMA will be official matchball partner of Spanish Football League “LaLiga” starting season 2019/20
  • PUMA becomes the exclusive merchandise and trackside retail partner of Formula 1
  • PUMA’s shareholders approve share split 1:10 at the Annual General Meeting on April 18 
  • Héloïse Temple-Boyer and Fiona May elected as new members of the supervisory board

Bjørn Gulden, Chief Executive Officer of PUMA SE: 

“The first quarter of 2019 was the best quarter PUMA has ever seen. Revenues of € 1,319 million (+15.3% currency adjusted) is the highest PUMA has ever achieved in a quarter and the EBIT of € 143 million (EBIT-margin 10.8%) was also the highest absolute EBIT PUMA has ever achieved. So, it has been a very good start into the year. The growth in all regions and all product divisions shows that we continue to make progress. Even if we have nine more months to go and despite a lot of uncertainty in the market, we feel comfortable that we will achieve our guidance for the full year.”

FIRST QUARTER 2019

PUMA's sales growth continued in the first quarter of 2019. Sales rose by 15.3% currency-adjusted to € 1,319.3 million (+16.6% reported) compared to € 1,131.1 million last year. The regions Asia/Pacific, driven by China, and the Americas contributed with double-digit sales growth, while sales in EMEA increased solidly. In terms of divisions, Apparel was the main growth driver in the quarter, followed by Accessories and Footwear. The categories Running and Training, Teamsport, Motorsport and Golf on the performance side as well as Sportstyle all recorded strong growth. The double-digit increase in both wholesale and direct-to-consumer sales underlines a well-balanced growth of our business.

The gross profit margin improved by 80 basis points from 48.2% to 49.0%. The increase resulted from a favorable product mix with higher growth in Apparel and a favorable regional sales mix with higher sales growth in the Asia/Pacific region. Currency effects also had a slight positive impact on the gross profit margin development in the first quarter. 
 

Q1 Results

Operating expenses (OPEX) rose by 16.8% to € 510.7 million in the first quarter. The increase was mainly caused by higher sales-related variable costs, including logistics costs as well as higher marketing and retail investments. 
 
The operating result (EBIT) improved by 27.0% from € 112.2 million to € 142.5 million in the first quarter 2019 due to a strong sales growth combined with a higher gross profit margin. This corresponds to an EBIT-margin of 10.8% compared to 9.9% in the first quarter last year.

Net earnings went up by 40.1% from € 67.4 million last year to € 94.4 million in the first quarter of 2019, supported by an improved financial result. As a consequence, earnings per share improved from € 4.51 to € 6.31.

 

Working Capital

Despite the significant sales growth, working capital rose by only 7.1% from € 791.0 million to € 846.9 million. Inventories were up by 19.3% to € 907.5 million due to management of supplier capacities and to support the growing demand in the upcoming quarters. Trade receivables rose by 12.3% from € 685.0 to € 769.2 million. On the liabilities side, trade payables and other current liabilities increased by 17.1% to a total of € 1,004.8 million (last year: total of € 858.2 million).

 

Effects from first-time application of IFRS 16 Leases and related extension of the balance sheet

  • The new lease standard (IFRS 16) has to be applied since the beginning of this year. This led to a significant extension of the balance sheet total as of March 31, 2019. The capitalization of the ‘rights of use’ from former operating-lease contracts at the amount of 
    € 635.6 million and the recognition of a corresponding lease liability on the balance sheet were the reasons for the increase of non-current assets and liabilities. A lease liability of 
    € 116.9 million is included in other current liabilities and € 535.1 million are included in other non-current liabilities. This extension of the balance sheet resulted in a negative impact on the equity ratio, which therefore decreased from 57.9% at year-end 2018 to 44.5% at the end of the first quarter 2019.
     
    The effects from the first-time application of IFRS 16 on the profit and loss statement of the first quarter 2019, however, were not material. IFRS 16 has had a slight positive effect on the operating result (EBIT) of € 3.8 million. Including the additional interest expense of € 6.6 million due to IFRS 16 and further deferred tax effects (+ € 0.8 million), the impact on net earnings in the first quarter 2019 in total was a negative amount of € 2.0 million.
    Please refer to the Notes to the Consolidated Financial Statements as of December 31, 2018, chapter 1 General, for a detailed description of the new lease accounting standard and the effects of the first-time application of IFRS 16.


     

    Outlook 2019

     

    After a strong start into 2019 both in terms of sales and profitability, we confirm our guidance for the full-year 2019, which was provided on February 14, 2019:

  • Sales: currency-adjusted growth of around 10%
  • Gross profit margin: slight improvement compared to last year (2018: 48.4%)
  • OPEX: increase at a slightly lower rate than sales
  • EBIT: in a range between € 395 million and € 415 million 
  • Net earnings: significant improvement

Cover Picture Credits: Getty Images

Herzogenaurach, Germany - June 6, 2019
PUMA sets date for 1:10 share split

Sports company PUMA has set June 10 as the date for its 1:10 share split, following approval by the company’s shareholders and regulatory clearance.

Starting June 10, each existing shareholder will therefore receive nine additional shares for each share they already own. It is expected that the price per share will adjust accordingly.

PUMA’s management has decided to initiate the stock split to make the shares more accessible to retail investors in order to further diversify its shareholder base.

The relevant changes to the articles of association were registered with the local court (Amtsgericht) in Fürth on May 23, 2019.

herzogenaurach, germany - june 11, 2019
puma signs rising pole vault star armand "mondo" Duplantis
Global sports company PUMA has signed rising Pole Vault star Armand "Mondo" Duplantis, the young athlete competing for Sweden, who will further boost the company's impressive roster of track and field athletes.

At only 19 years of age, U.S. born Mondo has already won several medals and broken a fair share of records. In 2018, he stunned the track and field world at the European Championships by setting a U20 record for a 6.05m jump and taking the gold medal.

“I don’t want to sound like a cliché, but being part of the PUMA family is a dream come true,” said Mondo about his new relationship with the sports brand. “It’s a perfect fit because Usain Bolt is the greatest ever to live, and I’m not saying that I’m him, but following in his steps is an amazing opportunity. I’m honored that PUMA trusted me to represent the brand, I’ll do everything it takes to make them proud.”

Mondo’s success is the result of a lifelong dedication to the sport and being born into an athletic family. Coached by his mother and father, he grew up pole vaulting in his own backyard.

In addition to his exceptional athletic abilities, Mondo is a charismatic, inspiring, hard-working, and a highly motivated person. He has what it takes to shine in anything he strives for, especially on the road to 2020.

“We are humbled that Mondo has decided to join the PUMA family; he represents everything we are as a brand. PUMA has a long history in sports, and throughout the years we’ve partnered with some of the world’s greatest athletes, like legends Tommie Smith, Maradona, Pelé, and most recently, Usain Bolt,” said Pascal Rolling, Global Head of Running Sports Marketing. “We are confident that Mondo will leave a huge and memorable mark in the sport of Track and Field, as have many of our athletes.”

 

 

For pictures and the Press Release download the Media Kit below.

herzogenaurach, germany - june 25, 2019
puma commits to 35% reduction in carbon emissions by 2030
Sports company PUMA aims for a 35% reduction of its greenhouse gas emissions by 2030, a target which was approved by the Science Based Target initiative (SBTi).

With a science-based target, a company ensures that it reduces greenhouse gas emissions sufficiently to meet the goals of the Paris Agreement, which aims to limit global warming to well-below 2°C above pre-industrial levels.

PUMA has committed to reduce emissions from owned and operated facilities, as well as its energy needs (Scope 1 and 2 emissions) by 35% by 2030 compared to 2017. The company also aims to reduce Scope 3 emissions, coming from purchased goods and services, by 60% per Million € in sales between 2017 and 2030.

“Recent scientific reports have highlighted the need for urgent action, as global warming is happening at a faster pace than previously anticipated,” said Stefan Seidel, PUMA’s Head of Corporate Sustainability. “That is why PUMA wants to be a part of the solution by setting a bold path towards reducing greenhouse gas emissions.”

As part of its commitment to reduce greenhouse gas emissions, PUMA plays a leading role in the “Fashion Industry Charter for Climate Action”, which was introduced at the UN Climate Conference in Poland last year.

“We know that the fashion industry has a significant impact on the environment, but rapid growth in global apparel and footwear production shows no signs of slowing,” said Cynthia Cummis, Director of Private Sector Climate Mitigation at World Resources Institute (WRI), one of the SBTi partners. “We need more companies in the industry to follow PUMA’s lead and pursue comprehensive strategies to decarbonize and do their part to prevent catastrophic climate change.”

Today, the SBTi released new guidance that provides clarity on measuring and reducing value chain emissions in the apparel and footwear sector.  The SBTi defines and promotes best practice in science-based target setting, offers cutting-edge resources and expert guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets. It is a collaboration between CDP, the United Nations Global Compact (UNGC), World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). 

 

 

The Press Release can be downloaded below.

`s-hertogenbosch, the netherlands - july 1, 2019
more than a socks company: stichd sets bold new course

Product licensing company stichd has today begun a new chapter, combining three companies into one to build on decades of experience in designing and creating the highest quality bodywear, legwear, swimwear and fanwear for some of the world’s leading brands.

stichd, fully owned by sports company PUMA, aims to use its new corporate identity to become a globally recognised player which builds long-term relationships with brands to expand into new business areas.

stichd has more than 500 employees and has posted double-digit growth rates every year since being taken over by PUMA.

“Over the past decade we have connected brands, retailers and consumers to create experiences that matter,” said Nina Nix, Chief Executive Officer of stichd. "It is now time for stichd to step out of the shadows and confidently present itself as a brand in its own right.”

Nix moved to the Netherlands seven years ago when PUMA took over Dobotex, its Dutch licensee, which had been making socks for the sports company since 1997. Since then, the company built up a large portfolio of brands and expanded into new business categories, most recently swimwear. 

Sports merchandising specialist Branded, founded in 2014, will also be a part of the new company stichd. Most recently, Branded signed a deal to become the exclusive trackside retailer at most Formula 1 races. Dobologic, the group’s logistics arm, is the third company to be integrated into stichd.

 

For more information about stichd, please visit http://stichd.com/

 

osly, norway - july 23, 2019
puma signs long-term partnership with World champion hurdler karsten warholm

Sports company PUMA has signed a long-term agreement with Norwegian hurdler Karsten Warholm, 23, the reigning World Champion over 400 metres hurdles.

A naturally talented athlete, Warholm started out his career in octathlon and decathlon, winning gold at the World Youth Championships in 2013 and silver at the European Junior Championships of 2015.

After focusing on 400 metres hurdles, Warholm stunned the competition by taking the gold at the World Championships in London at only 21 years old. On Saturday, he rewrote history once again at the London Anniversary Games by smashing the European 400m hurdles record for the second time this summer, clocking 47.12 seconds. Already in June this year - cheered on by his home crowd in Oslo - Warholm beat the European record, which had been set before he was born, with a time of 47.33 seconds.

“Karsten is a fantastic athlete with a great personality”, said Bjørn Gulden, CEO of PUMA. “He is mentally very strong and he works extremely hard to be the best. We look forward to working with him and to being part of his journey.”

Known for his explosive style and his determination to lead races from start to finish, Warholm won gold medals at the European Championships and the European Indoor Championships in 2018 and 2019, continuously chipping away at his personal best and the Norwegian record.

“It is great to be a part of the PUMA family, a company that has worked with the fastest man alive,” said Karsten Warholm. “I have a strong believe in this cooperation and I can`t wait to get started”.

 

The Media Kit below contains the Press Release (PDF) and images (4).

Herzogenaurach, Germany - July 31, 2019
Strong sales and EBIT growth continues in the second Quarter

PUMA slightly adapts full-year guidance for 2019

2019 Second Quarter Facts

  • Sales increase by 15.7% currency-adjusted to € 1,227 million (+16.9% reported) driven by continued growth in all regions and product divisions 
  • Gross profit margin improves to 49.3% 
  • Operating expenses (OPEX) increase 16.5% due to higher sales related costs as well as higher marketing and retail investments
  • Operating result (EBIT) up by 39% to € 80 million (last year: € 58 million)
  • PUMA excercises 1:10 share split 
  • PUMA athlete Danny Green wins the NBA Championship with the Toronto Raptors
  • PUMA is well represented at the FIFA Women’s World Cup in France by sponsoring 78 individual players and quarter finalist Italy
  • PUMA team Senegal reaches the final of the 2019 Africa Cup of Nations in Egypt
  • PUMA launches very successfully the kits of Manchester City and also announces the signing of Pep Guardiola as a brand ambassador

 

2019 half-year facts

  • Sales increase by 15.5% currency-adjusted to € 2,546 million (+16.8% reported) 
  • Gross profit margin up 80 basis points at 49.2%
  • Operating expenses (OPEX) increase by 16.6% and grow at a slightly lower rate than reported sales 
  • Operating result (EBIT) improves by 31% from € 170 million to € 223 million 
  • Net earnings increase from € 99 million last year to € 144 million and earnings per share increase from € 0.66 last year to € 0.96 respectively
  • Héloïse Temple-Boyer and Fiona May elected as new members of the supervisory board
  • PUMA announces the signing of the football clubs Manchester City as well as Valencia CF and will be official matchball partner of Spanish Football League “LaLiga” 

Bjørn Gulden, Chief Executive Officer of PUMA SE: 

“The second quarter of 2019 developed very positively for us, with sales growing 15.7% currency-adjusted and EBIT increasing 39%. All divisions and all regions saw healthy improvement. New styles of footwear sold well, apparel continued to be strong, replenishment orders for both apparel and footwear developed well and our direct-to-consumer business also performed well.
With this development in the first half-year and the current expectations for the second half, we have slightly adapted our outlook for the full year, expecting revenues to now improve around 13% in constant currency and the full-year EBIT to come in between € 410 million and € 430 million.
We would also like to mention that we are extremely happy with the cooperation with our new partner Manchester City and the entire City Football Group. The launch of their kits has been very successful and the initial sales have been higher than we both expected."

Second Quarter 2019

PUMA's strong sales growth continued in the second quarter of 2019. Sales increased by 15.7% currency-adjusted to € 1,226.8 million (+16.9% reported). The Asia/Pacific and Americas regions continued to contribute with double-digit increases, while growth in the EMEA region was at a high single-digit rate. Both Apparel and Footwear showed strong growth in the second quarter, improving by 22.7% and 14.5% respectively, while Accessories grew moderately by 6.3%. PUMA experienced growth across the categories with Sportstyle, Motorsport and Golf showing the highest growth rates.

The gross profit margin improved to 49.3% in the second quarter (last year: 48.6%). Positive impacts from channel and product mix, lower discounts and positive currency impacts led to margin improvements. 

Operating expenses (OPEX) rose by 16.5% to € 531.6 million in the second quarter. The increase was mainly caused by higher sales-related variable costs, including logistics costs as well as higher marketing and retail investments.

The operating result (EBIT) increased by 39.4% from € 57.6 million last year to € 80.3 million due to a strong sales growth combined with an improved gross profit margin and a slight operating leverage.

Net earnings increased from € 31.1 million to € 49.7 million and earnings per share were up from € 0.21 in the second quarter last year to € 0.33 correspondingly. 

Info Graphic Second Quarter 2019

First Half-Year 2019

Sales for the first half-year 2019 rose by 15.5% currency-adjusted to € 2,546.0 million (+16.8% reported). The strong sales development was largely driven by double-digit currency-adjusted growth rates in Asia/Pacific, where China continued to be the main growth driver, and the Americas. EMEA was at a more moderate level with a mid single-digit growth rate. From a product division perspective, the sales growth was driven by double-digit growth in Apparel with an increase of 24.8% as well as in Footwear, which grew by 11.7%. 

Wholesale continued to drive growth with an increase of 13.8% currency-adjusted, supported by a strong performance of our key accounts. PUMA's own and operated retail sales increased by 21.5% currency-adjusted to € 599.6 million including eCommerce. This represented a share of 23.6% of total sales for the first half of 2019 (22.5% in the previous year). The reasons for the rise are a like-for-like sales growth in our own retail stores, the expansion of our retail store network and a continued strong growth of our eCommerce business.

The gross profit margin improved by 80 basis points from 48.4% to 49.2% in the first half of 2019. Positive impacts from channel and product mix, lower discounts and positive currency impacts led to margin improvements.

Operating expenses (OPEX) increased by 16.6% and amounted to € 1,042.3 million. The increase was driven by higher sales related variable costs as well as continued investments in IT-infrastructure, marketing and our own retail business. 

The operating result (EBIT) grew by 31.2% from € 169.8 million last year to € 222.8 million in the first half of 2019 due to a strong sales growth combined with an increased gross profit margin and a slight operating leverage. This led to an improved EBIT-margin of 8.8% compared to 7.8% in the first half last year.

Net earnings rose by 46.3% to € 144.1 million (last year: € 98.5 million). This translates into earnings per share of € 0.96 compared to € 0.66 in the first half of 2018.

 

 

Working capital

Inventories were up by 19.4% at € 1,063.3 million due to the general sales growth, more retail stores as well as earlier receipts of products in order to balance supplier capacities and thereby avoid delivery issues. Trade receivables rose by only 11.2% to € 704.7 million. On the liabilities side, trade payables were up by 15.9% to € 740.1 million. This resulted in an increase of working capital by 15.7% to € 792.9 million.

 

Cashflow

The free cashflow in the first half of 2019 decreased slightly to € -104.4 million (1-6/2018:
€ -97.9 million). This development was a result of higher capital expenditures and an increase of working capital, while earnings before taxes (EBT) improved significantly. In addition, the first-time application of IFRS 16 Leases had a positive effect on the free cashflow. Please refer to the Notes to the Interim Report for a detailed description of the effects of the first-time application of IFRS 16 Leases.

 

Outlook 2019

The second quarter of 2019 saw a continued strong increase of sales and profitability. As a consequence and based on our expectations for the remainder of the year, we slightly adapt our guidance for the full year 2019. PUMA now expects that currency-adjusted sales will increase around 13% (previous guidance: currency-adjusted increase of around 10%). The gross profit margin is still anticipated to improve slightly (2018: 48.4%) and we continue to expect that operating expenses (OPEX) will increase at a slightly lower rate than sales. The operating result (EBIT) is now expected to come in between € 410 million and € 430 million (previous guidance: between € 395 million and € 415 million). In line with the previous guidance, management expects that net earnings will improve significantly in 2019.

 

brand and strategy update

With the announcement of several new partnerships, PUMA had an exciting first half of the year 2019.

In Football, PUMA signed its largest deal ever - both in terms of scope and ambition - teaming up with City Football Group, which includes reigning English Premier League champions Manchester City and a total of five teams on four continents. The new 2019/20 kits were successfully launched in July and exceeded any first day sales in the club’s history. In addition to the club, PUMA signed Manchester City’s iconic manager Pep Guardiola as a brand ambassador.
We also announced that in Spain, starting in the 2019/20 season, we will supply the official ball used in all professional matches of LaLiga Santander and LaLiga 1|2|3. To expand our presence in Spanish club football, we entered a long-term agreement with Valencia CF, one of Spain’s most successful teams.
Together with its existing partnerships, these new deals ensure that PUMA has a title contending presence in each of the key European football leagues.
At the FIFA Women’s World Cup in France, we sponsored quarter finalist Italy and 78 individual players. To celebrate women’s football, PUMA launched the latest evolution of the PUMA ONE football boot as the PUMA ONE Trailblazer, exclusively worn by our leading female players. 

In other Teamsport events, PUMA team Denmark took the title at the Handball World Championships and PUMA athletes Rasmus Lauge from Denmark and Bjarte Myrhol from Norway were named part of the event’s All-Star team. Beyond that, PUMA team New Zealand won the Women’s Netball World Championships in Liverpool.

In Track & Field, PUMA is already getting ready for the Olympic Games in Tokyo in 2020 and added several new athletes to its roster: world champion 400m hurdler Karsten Warholm, rising pole vault star Armand Duplantis, 2019 NCAA 100m and 200m champion Divine Oduduru, 2019 NCAA 100 meter hurdles champion Janeek Brown, long-jumper and sprinter Blessing Okagbare, high jumper Naoto Tobe and the Portuguese Athletics Federation.

In Motorsport, PUMA entered into a long-term contract with Porsche to become the exclusive technical partner for racing gear as well as shoes, caps and luggage. As part of our vision to bring the track to the street, PUMA launched a separate collaboration with Porsche Design, for co-branded footwear, apparel, and accessories, aimed at the higher end of the market.
We also partnered with W Series, the first racing competition for women, supplying high-performance racewear for all drivers.
Our athletes continued to perform well at the pinnacle of Motorport, as PUMA teams won two of the most prestigious races on the calendar: Lewis Hamilton in the Mercedes AMG Petronas won the Formula 1 Monaco Grand Prix and Simon Pagenaud of Team Penske claimed victory at the Indianapolis 500.
Adding to its leading offering in Motorsport, PUMA became the official trackside retail partner for Formula 1.

PUMA’s first full NBA Basketball season after the company’s return to the sport last year saw the Toronto Raptors shooting guard Danny Green become the first PUMA athlete to win the NBA Championship since Isiah Thomas in 1990.
PUMA launched its debut basketball shoe, the Clyde Court, in several new colorways as well as its second performance basketball shoe, the Uproar. Both products were highly visible throughout the NBA Season, the All-Star Game, the Playoffs, and the NBA Finals. In addition, we brought back a key heritage basketball style: the Ralph Sampson. The Ralph Sampson is a shoe with street style appeal and the initial response was very encouraging.

In Golf, PUMA’s latest signing Gary Woodland won the US Open as his first major title and created a lot of media echo with his “star-spangled” IGNITE PWRADAPT golf shoes.

In Sportstyle, the RS-X franchise continues to be a bestseller within the “chunky shoe category”, supported by the launch of the RS-X Trophy at the beginning of the year as well as by collaborations with MTV and Motorola. The Cali and Cali Bold, presented by PUMA’s ambassador Selena Gomez, were also among PUMA’s best-selling franchises in the first half of the year.

On the operational side, we continued to invest in our distribution and logistical network as well as in organizational processes. In the first six months of 2019, PUMA added 33 (net) owned and operated retail stores while in China, our partners opened around 200 new PUMA retail locations. In August, we will open our New York flagship store on Fifth Avenue, which will be another milestone for our company. At the beginning of the year, we started working on our new multichannel distribution center in Geiselwind, Germany. Construction is on track and the center is expected to be operational in early 2021. In addition, PUMA North America announced the opening of a new distribution hub just outside of Indianapolis for 2020.

Download the Media Kit below to get the Press Release (PDF) and image.

 

Have a look at our Financial Calendar for the Full Year 2019

herzogenaurach, germany - August 20, 2019
puma and playseat revolutionize seating to make gaming active

Sports company PUMA and gaming gear company PLAYSEAT have developed revolutionary seating for active gamers, building on PLAYSEAT’s innovation and PUMA’s extensive ergonomic and material research to turn gaming into an active experience.

 

The PLAYSEAT | PUMA game seat, which was presented at Europe’s leading digital gaming trade fair Gamescom in Cologne, will allow gamers to maintain an active, correct sitting position with total freedom of movement and complete control.

Charles Johnson

We have to start seeing gamers as athletes, with requirements particular to their sport. As a sports company, we want to offer these athletes the products they need to perform at the very top.

 

CHARLES JOHNSON, GLOBAL DIRECTOR OF INNOVATION
PUMA and PLAYSEAT

Using high-tech, breathable materials developed by PUMA, the game seat adapts to players’ positions as they get immersed in the on-screen action, while remaining comfortable even after many hours of play. It does not matter whether you are a top-level esports athlete, a console gamer, a mobile gamer or just watching your favorite show. With ultimate control at the core of its development, the game seat ensures that players and users of all levels, ages, shapes and sizes can find their ideal sitting position.
 

“Gaming is greater with full sitting control,” said Fernando Smit, President and Founder of PLAYSEAT. “That’s why we felt the need to change sitting of gamers from the traditional couch or even on the floor in front of their screens, so we created something truly unique.”

 

The PLAYSEAT | PUMA game seat will be available in November 2019 and a community will be created for those who want to be among the first to try out this revolutionary seat. Find out more on the product and details on how to sign up at: playseat.com/puma

 

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