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

 

herzogenaurach, germany - august 23, 2019
puma joins global fashion pact to protect climate, biodiversity and oceans

 

The Fashion Pact commits to developing an action plan to make the industry carbon neutral by 2050 in order to avoid the most disastrous consequences of a changing climate. The pact also aims to set science-based targets to restore natural ecosystems and protect wildlife. 
 
In addition, the Fashion Pact targets the issue of marine pollution by committing to phase out single-use plastics and reduce the fashion industry’s negative impact on the world’s oceans.

 
“As we work in shared supply chains across the world, PUMA believes that it is essential to bring the industry together to achieve meaningful change and improve our environmental impact,” said PUMA CEO Bjørn Gulden. “We strongly believe in this initiative and look forward to working together with our partners on the priorities we have set out in the Fashion Pact.”


 
Last year, PUMA played an important part in the creation of the Fashion Industry Charter for Climate Action, which was presented at the UN Climate Conference in Katowice, Poland, to reduce the carbon emissions of the industry and reach climate neutrality, across the industry, up and down supply chains, by mid-century.
 
As a company, PUMA has already committed to a target to reduce its own greenhouse gas emissions by what scientists say is necessary to be in line with the Paris Agreement.

westford, massachusetts - august 29, 2019
PUMA’S NEW NYC FLAGSHIP STORE SEAMLESSLY INTEGRATES TECHNOLOGY, ART, AND MUSIC FOR A ONE-OF-A-KIND RETAIL EXPERIENCE

Customized Studio and tech-driven engagement zones provide consumers a shopping experience unlike anything they've seen before

“PUMA continues to see solid growth within North America and this new store reaffirms our commitment to this important market,” said Bob Philion, President of PUMA North America. “From visitors that come to experience this iconic city, to lifelong New Yorkers, we’re excited to open our doors in a vibrant and diverse community that aligns with our ‘Forever Faster’ mentality.”   

Throughout the year, the New York flagship will also feature exclusive collections designed by select brand ambassadors and athletes, and host unique events and experiences authentic to New York City. The flagship store will carry the full range of PUMA products including lifestyle, basketball, motorsport, golf, performance, soccer and kids.

Consumers can experience the store’s unique offerings during the grand opening weekend, August 29 through September 2, with events which include in-store performances, fitness activations and exclusive opening weekend merchandise. 

The PUMA Fifth Avenue store will be open Monday – Sunday 10 a.m. – 8 p.m. For more information please visit puma.com.  

Herzogenaurach, germany - october 9, 2019
PUMA signs partnership with Fédération Royale Marocaine de Football
PUMA has signed a new multi-year partnership with the Fédération Royale Marocaine de Football, adding the country to its increasing portfolio of national team federations. PUMA will once again team up with the ‘Atlas Lions’, having already adorned the country’s jerseys on two previous occasions.

"We are very pleased to welcome Morocco back to the fold. Morocco has a rich football history and passionate fanbase for whom we are very excited to supply with our products,” said Johan Adamsson, Director of Sports Marketing & Sports Licensing at PUMA. “PUMA has always had a strong presence in African football, and we are glad we can expand our reach with this partnership."

"Last year, the Atlas Lions returned to the world stage, playing their first global tournament in 20 years,” said Adil Barii, Marketing Director of the Fédération Royale Marocaine de Football. “With our new partner PUMA, we look forward to building on this success at both continental and global stages."

 

herzogenaurach, germany - october 24, 2019
Strong sales and EBIT growth continues in the third Quarter

PUMA slightly adapts guidance for the full year 2019.

2019 Third-Quarter Facts

  • Sales increase by 17.0% currency adjusted to € 1,478 million (+19.0% reported) with continued growth in all regions and product divisions 
  • Gross profit margin improves to 49.7% 
  • Operating expenses (OPEX) increase 18% (reported) due to higher sales related costs as well as higher marketing and retail investments
  • Operating result (EBIT) up by 25% to € 162 million 
  • PUMA opens its first ever North American flagship store on Fifth Avenue in New York
  • At the World Athletics Championships in Doha (Qatar), PUMA athlete Karsten Warholm defends his title over 400m hurdles; overall, the 12 PUMA-sponsored federations and 115 athletes competing in Doha ensured a high level of visibility for the brand 
  • PUMA signs the Morocco national football federation
  • PUMA adds RJ Barrett from the New York Knicks and Kyle Kuzma from the Los Angeles Lakers to its growing roster of NBA players

2019 nine-months facts

  • Sales increase by 16.0% currency adjusted to € 4,024 million (+17.6% reported) 
  • Gross profit margin up by 60 basis points at 49.4%
  • Operating expenses (OPEX) increase by 17% (reported) at a slightly lower rate than reported sales 
  • Operating result (EBIT) improves by 28% from € 300 million to € 385 million and EBIT-margin increases from 8.8% to 9.6%
  • Net earnings increase by 39% from € 176 million last year to € 245 million and earnings per share increase from € 1.18 last year to € 1.64 correspondingly
 
 

Bjørn Gulden, Chief Executive Officer of PUMA SE:

“The third quarter developed very positively for us and ended as the best quarter that PUMA has ever achieved - both in terms of revenue and EBIT. Double-digit sales growth in all divisions and almost in all regions (EMEA “only” 9.7%) underlines the favorable development of our brand. Especially positive for me was the 17% growth in Footwear, which shows the strong performance of the new styles, and EMEA’s growth of almost 10%, proving a good recovery in Europe. The fourth quarter will be the first quarter where the US tariffs on China will have an impact. Currently, without price increases, this is putting pressure on EBIT, at least in the short-term. Nevertheless, the good development in the third quarter and the outlook for the fourth quarter allows us to look at a sales growth of around 15% currency adjusted and an EBIT between € 420 million and € 430 million for the full year 2019.”

Third Quarter 2019

PUMA's strong sales growth continued in the third quarter of 2019. Sales increased by 17.0% currency adjusted to € 1,477.6 million (+19.0% 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. Footwear, Apparel and Accessories all showed strong growth in the third quarter, improving by 16.9%, 18.7% and 13.4% respectively. Sportstyle, Motorsport, Golf and Running and Training were the categories with the highest growth rates.

The gross profit margin improved to 49.7% in the third quarter (last year: 49.6%). Small positive mix effects as well as slightly beneficial hedging led to margin improvements. 

Operating expenses (OPEX) rose by 18.1% to € 578.5 million in the third quarter. The increase was mainly caused by higher sales-related variable costs, including logistics costs as well as higher marketing and retail investments, while the remaining OPEX only rose moderately.

The operating result (EBIT) increased by 24.8% from € 129.9 million last year to € 162.2 million due to a strong sales growth combined with an improved gross profit margin and operating leverage. This corresponds to an improvement of the EBIT-margin from 10.5% last year to 11.0% in the third quarter 2019.

Net earnings increased by 29.7% from € 77.5 million to € 100.5 million and earnings per share were up from € 0.52 in the third quarter last year to € 0.67 correspondingly. 

Info Graphics Q3 Results PUMA

Nine Months 2019

Sales in the first nine months of 2019 rose by 16.0% currency adjusted to € 4,023.6 million (+17.6% reported). The strong sales development was largely driven by double-digit growth rates in Asia/Pacific, where China continued to be the main growth driver, and the Americas. EMEA grew at a high single-digit rate. The growth was driven by double-digit growth in all divisions: Footwear grew 13.5%, Apparel expanded by 22.4%, and Accessories increased by 10.3%. 

Wholesale continued to drive growth with an increase of 14.5% currency adjusted, supported by a strong performance of our key accounts. PUMA's direct-to-consumer sales (owned and operated retail stores and eCommerce) increased by 21.3% currency adjusted to € 947.3 million. This was driven by like-for-like sales growth in our own stores, the expansion of our retail store network and a continued strong growth of our eCommerce business. Direct-to-consumer sales represented a share of 23.5% of total sales for the first nine months of 2019 (22.5% in the previous year). 

The gross profit margin improved by 60 basis points from 48.8% to 49.4% in the first nine months of 2019. Positive impacts from regional, channel and product mix, lower discounts as well as slightly positive currency impacts led to margin improvements. 

Operating expenses (OPEX) increased by 17.2% and amounted to € 1,620.7 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 28.4% from € 299.8 million last year to € 385.0 million in the first nine months 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 9.6% compared to 8.8% in the first nine months last year.

Net earnings rose by 39.0% to € 244.6 million (last year: € 176.0 million). This translates into earnings per share of € 1.64 compared to € 1.18 in the first nine months of 2018.

 

Working Capital

Inventories were up by 28.4% at € 1,140.8 million. Earlier purchase of products to balance supplier capacities and secure product availability, more retail stores in operation and the general sales growth led to the increase. In the third quarter, the latest currency developments as well as an increased front-loading of product for the United States prior to tariff increases further added to the development. Trade receivables rose by 13.1% to € 794.8 million. On the liabilities side, trade payables were up by 23.0% to € 722.1 million. This resulted in an increase of working capital by 20.1% to € 915.7 million. 

 

outlook 2019

The third quarter saw a continued strong increase in sales and profitability. Based on this and our expectations for the fourth quarter, we slightly adapt our guidance for the full year 2019. PUMA now expects that currency adjusted sales will increase around 15% (previous guidance: currency adjusted increase of around 13%). 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. As a consequence, we expect the operating result (EBIT) to come in between € 420 million and € 430 million, despite the negative impact from new tariffs in the fourth quarter in the United States (previous guidance: between € 410 million and € 430 million). In line with the previous guidance, management expects that net earnings will improve significantly in 2019.

herzogenaurach, germany - november 21, 2019
PUMA and Borussia Dortmund extend partnership

Sports company PUMA and German football club Borussia Dortmund have signed a long-term partnership extension, which will see PUMA continue to develop products to match BVB’s energetic and fast-paced football and cater to the needs of the club’s fans around the world.

PUMA and BVB first joined forces during the 2012/2013 Bundesliga season. Since then, the club has won the German cup, the German Supercup, reached the Champions League Final and has become increasingly relevant as a global football brand. Known for its passionate fans and formidable atmosphere, BVB is one of the world’s best supported teams. It has recorded the highest average home attendance in world football over the past five years.

“Borussia Dortmund is one of our most important partners,” said PUMA CEO Bjørn Gulden. “We love the fans of this club and the atmosphere they create at the Signal Iduna Park. It is quite possibly the best stadium atmosphere in the world.”

BVB chief executive officer Hans-Joachim Watzke said: “For many years, PUMA has been more than a supplier and a sponsor for BVB. It has been a heavyweight in the shareholder structure of our club, too. This shows the enormous identification of PUMA and its staff across the world. Our partnership has grown and extends far beyond the boundaries of a normal business relationship. We would like to add another chapter to our joint success story in the coming years.

Borussia Dortmund’s managing director Carsten Cramer added: “Borussia Dortmund and PUMA share the same philosophy of intensive football and an emotional fan experience. PUMA is one of the most creative and dynamic sports brands on the planet and yet it has retained a family feel. We’re proud that two companies with such a positive energy will continue to bounce off each other going forward.”

Under the terms of the deal, PUMA will continue to supply kits to all BVB teams and create replica and fanwear products. The company also has separate agreements with BVB players such as Marco Reus, Julian Weigl, Axel Witsel, Lukasz Piszczek and Marwin Hitz.

 

herzogenaurach, germany, december 11, 2019
PUMA’s General Counsel of Intellectual Property voted president of FESI

Sports company PUMA’s General Counsel of Intellectual Property Neil Narriman (47) has been elected President of the Federation of the European Sporting Goods Industry (FESI). He will use this mandate to increase the visibility of the European sporting industry, steer the digital transformation and push for tougher action by regulators and governments on counterfeit products.

Narriman, who joined PUMA in 2006 and has headed the company’s intellectual property department since 2012, aims to further the sporting industry’s standing with European lawmakers and regulators, to show how the sector, with 1,800 companies and annual revenues of 81.5 billion euros, is an important pillar of the European economy.

“My goal is to make the sporting goods industry more visible on the political stage, not only in Europe but worldwide, in order to get the necessary support for the future challenges and opportunities,” Neil Narriman said.

The digital transformation will be crucial in developing a successful future for the industry, and retailers, brands, logistics providers and law makers will need to work hand in hand to create a legal framework in which business can thrive.  

Effective action against counterfeiting, which has a severe impact on revenues while putting consumers and the environment at risk, is also an important topic on the agenda of Narriman’s presidency, which has started in December 2019 and is set for a three-year term. 

 

herzogenaurach, germany, january 7th, 2020
puma & the german handball federation will join forces as of july 2020
Sports company PUMA will be the new sponsor of the German Handball Federation as of July 1st, 2020 and will exclusively supply all national teams (indoor as well as beach handball), all coaches, supervisors, and referees. 

"For PUMA, this sponsorship agreement is the next milestone in professional handball,” said Matthias Bäumer, General Manager PUMA DACH. “The German Handball Federation and its players embody motivation, passion and creative play on an international level, which makes them the perfect fit for PUMA. With our products, creative marketing and sales expertise, we want to celebrate successes with the German Handball Federation in the future."

"We are pleased to join forces with PUMA, one of the world's leading sports brands. As of July 2020, we will be paving the way for further major events, particularly the 2024 European Home Championship," said Mark Schober, CEO of the German Handball Federation. "By partnering with a strong brand such as PUMA, we expect that people will pay even more attention to our national teams and our sport in general. Also, it is our common goal to expand and further develop the German Handball Federation’s merchandising services for our fans in the future."

This new agreement follows a partnership with Kempa, whose DHB contract will expire. Mark Schober: "We would like to thank our previous supplier for a successful partnership that was based on trust. We are looking forward to the upcoming European tournament of our men’s national A team."

The partnership with the German Handball Federation will intensify PUMA’s handball activities in Germany. In the Handball Bundesliga, the company based in Herzogenaurach already supplies the Rhein-Neckar Löwen and the Women’s Handball team of Borussia Dortmund. Additionally, several current national A players such as Julius Kühn, Emily Bölk, Hendrik Pekeler, Franz Semper and Tobias Reichmann are part of the PUMA family. In the coming years, PUMA will supply female as well as male national players of all ages with jerseys, training wear and other accessories.

"This partnership emphasizes our know-how in indoor sports and PUMA's strong position in handball beyond the national club level,” said Kai Kuhlmann, Teamhead Sports Marketing PUMA DACH. “Already today, many German Handball Federation players trust the quality of our products. Anyone who loves handball can look forward to our partnership, because we have planned a lot for the fans on and off the field.

In the summer of 2020, the new DHB collection will be presented for the first time, including apparel, footwear, accessories, underwear, merchandise and handballs. In case of the national A teams’ athletic qualification, the first major event, in which the German Handball Federation and PUMA will represent German handball side by side, are the Olympic Summer Games in Tokyo. 

 

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