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. 

 

herzogenaurach, germany, 14 january, 2020
Puma signs long-term partnership with PSV Eindhoven

Sports company PUMA has entered into a new long-term partnership with PSV Eindhoven, one of the Netherlands most successful football clubs. Under the terms of the deal, PUMA will become the official kit supplier of the club, starting in July 2020.

PUMA x PSV

PSV Eindhoven have won twenty-four league titles and nine domestic cups having also achieved great success in Europe winning both the European Cup and the UEFA Cup.

“PSV Eindhoven is one of the most proud and prestigious clubs in Europe, with an incredible football history. We are truly excited to partner with such an illustrious, well-supported club as they strive for continuous success on the pitch”, said Johan Adamsson, Director of Sports Marketing & Sports Licensing at PUMA. “We look forward to welcoming PSV Eindhoven into the PUMA family and supporting them in achieving their ambitions”.

PUMA x PSV

The PUMA and PSV Eindhoven partnership builds on the shared values of innovation and cooperation, evident by the club motto ‘Unity Is Strength'. The club is deeply connected to Eindhoven, referred to as ‘The City of Light’, a city vibrant with culture, collaboration and global influence. Both PUMA and PSV Eindhoven’s ambitions are strongly aligned as they look to push boundaries on and off the pitch, connecting with the city and the fans in new and exciting ways.

PSV Commercial Director Frans Janssen said: “PUMA and PSV share the will to be better every day, that ambition is the foundation of this partnership. Their motto ‘Forever Faster’ is something that we recognize and embrace. We are very proud to team up with a global brand that gives us the opportunity to stay unique. Quality, comfort and authenticity are our main wishes regarding sportswear. These are all in the PUMA DNA. PSV is very honored to be welcomed into the PUMA family, joining great clubs such as Manchester City, AC Milan, BVB Dortmund and Valencia.”

 

Boston, Massachusetts; January 22nd, 2020
PUMA signs current long jump world champion
Global sports brand PUMA has signed current long jump World Champion Tajay Gayle. He recently competed at the 2019 Doha World Athletics Championships where he took home the gold medal for his 8.69m mark, making him the first Jamaican athlete to win first place in the long jump at a World Championship.

“Tajay is one of the best young talents out there”,  said Pascal Rolling, Head of Running Sports Marketing for PUMA. “He recently accomplished a great feat during the recent World Champs, and we are sure he will perform great during 2020. He shares all of our brand values, making him the perfect new addition to our roster of Track and Field athletes.”

“I’m so honored and happy to join the PUMA family, just like Usain Bolt,” said Tajay. “I’ve been working hard since I was a kid to accomplish my objectives, and this is definitedly one of them. I can’t explain how exciting this is for me. This new stage will allow me to prove everyone that I’m the best in the game.” 

Tajay comes from a small community in Eastern St. Andrew, Jamaica, he started his carrer trying out different dicisplines, including decathlon, until he found his love for long jump. This happened by chance during one of his training sessions. That day the mat of the high jump was wet, making it hard for him to do a safe landing. His coach made him do long jump practice instead. After this blessing in disguise, he’s been unstoppable.

 

Herzogenaurach, January 31, 2020
PUMA recognized as a European Top Employer in 2020

Sports company PUMA has been named Top Employer Europe for 2020. It was the only company from the sporting goods industry to be given the award on a European level this year.

This independent certification, awarded by the Top Employers Institute, underscores PUMA’s commitment to providing an attractive workplace for its employees. PUMA’s regional offices in Britain, France, Germany, Italy and Spain were also named Top Employers.

“It proves that all the work we’re putting in, to make PUMA a good place to work, is paying off,” said Dietmar Knoess, Global Director People and Organization at PUMA. “However, we will not rest on our laurels but take the feedback we have been given as a benchmark and see in which areas we can do even better.”

The Top Employer Award is given to companies that achieve Top Employer Standard in the HR Best Practices survey, which covers more than 100 questions across 10 topics. Following the survey, the Top Employers Institute carries out a comprehensive audit.

PUMA employees enjoy flexible working hours and mobile working, which is part of PUMA’s Wellbeing offer. The company supports employees outside of work through financial and pension planning, childcare support and a wide range of sports opportunities like free gym & sports classes. PUMA also provides its employees with extensive development and learning programs.

 

PUMA AND J.COLE ANNOUNCE OFFICIAL PARTNERSHIP

TV SPOT WILL AIR DURING 2020  NBA ALL-STAR GAME

Today, global sports company PUMA officially announced a multi-year partnership with Grammy-winning artist J.Cole with a short film and TV commercial that was concepted and co-directed by Cole himself. The theme of the spot speaks to never abandoning one’s dream, despite the obstacles faced or time passed. The commercial was a joint PUMA x Dreamville production and will air during Sunday’s NBA All-Star game on TNT.

PUMA has tapped Cole because of his connection to basketball, fashion and music culture. “Our partnership with Cole is deep-rooted,” said Adam Petrick, Global Director of Brand & Marketing at PUMA. “Cole’s involved in product creation, marketing campaigns and cultural guidance. He is going to be a key player in many of the things we do at PUMA moving forward and we’re excited to work with him not only on a product level but even more importantly as one of our athletes.  Cole sits at the intersection of music and sport and represents everything that PUMA stands for as a brand.”

 

This announcement comes right before PUMA’s newest Hoops silhouette, the Sky Dreamer, hits shelves on February 13. The Sky Dreamer is a relaunch of the original style, the Sky LX, worn on-court in the ‘80s.  It now returns to basketball nearly four decades later with a heritage-inspired mid-top silhouette infused with a touch of today’s style, including a Dreamville “Dreamer” emblem, which draws inspiration from Cole’s brand, Dreamville. This new sneaker will be worn on and off the court by PUMA Hoops athletes and has already been spotted on J.Cole over the past few months.   The Sky Dreamer is the first of many Hoops products that Cole will be involved in before dropping his own Dreamer footwear and apparel coming later this year with PUMA.

 

PUMA
herzogenaurach - february 19, 2020
PUMA posts record sales and EBIT as strong growth momentum continues throughout 2019

2019 Fourth Quarter Facts

  • Sales increase by 20.6% reported to € 1,479 million (+18.3% currency adjusted) with double-digit growth in all regions and product divisions
  • Gross profit margin improves to 47.3%
  • Operating expenses (OPEX) increase by 19.4% reported due to higher sales related costs as well as higher marketing and retail investments
  • Operating result (EBIT) up by 46.8% to € 55 million
  • In Formula 1, PUMA athlete Lewis Hamilton wins drivers championship for the sixth time and PUMA team Mercedes AMG Petronas wins the constructors´championship
  • PUMA and BALMAIN join together to debut their first collaboration, created with Cara Delevingne
  • PUMA partners with Grammy-winning artist J.Cole
  • PUMA announces partnerships with German Handball Federation (DHB) and football club PSV Eindhoven, both starting July 2020

2019 Full-Year Facts

  • Sales increase by 18.4% reported to € 5,502 million (+16.7% currency adjusted)
  • Gross profit margin up by 40 basis points at 48.8%
  • Operating expenses (OPEX) increase by 17.8% (reported) at a slightly lower rate than reported sales
  • Operating result (EBIT) improves by 30.5% from € 337 million to € 440 million
  • Net earnings increase by 40.0% from € 187 million last year to € 262 million and earnings per share increase from € 1.25 last year to € 1.76 correspondingly
  • Proposal of an increased dividend of € 0.50 per share for 2019 at the Annual General Meeting (2018: € 0.35 per share)

 

Bjørn Gulden, Chief Executive Officer of PUMA SE:

“2019 ended with a very strong fourth quarter for us with revenues being up 20.6% reported (18.3% currency adjusted) and EBIT up 47%. All regions and all product divisions were up by double digits. This made 2019 the best year in PUMA‘s history with a revenue of € 5.5 billion (+ 18.4%) and an EBIT of € 440 million (+30%). I am very proud of what the team has achieved and think this performance shows the global potential of the PUMA brand.

After a good start into 2020,  February has of course been negatively affected by the outbreak of COVID-19. The business in China is currently heavily impacted due to the restrictions and safety measures implemented by the authorities. Business in other markets, especially in Asia, is suffering from lower numbers of Chinese tourists.

Given the current uncertainty around the virus it is of course impossible to forecast its impact on the business. We will do everything we can in the short term to minimize the damage and remain very positive in the long term both for our industry and for PUMA.”

 

 

Fourth Quarter 2019

Sales

PUMA's strong sales growth continued in the fourth quarter of 2019. Sales increased by 20.6% reported to € 1,478.6 million (+18.3% currency adjusted). All regions and all product divisions contributed with double-digit increases. Sportstyle, Running and Training as well as Motorsport were the categories with the highest growth rates.

Gross Profit Margin and Operating Expenses

The gross profit margin improved to 47.3% in the fourth quarter (last year: 47.1%). Small positive mix effects as well as slightly positive currency effects led to margin improvements.

Operating expenses (OPEX) rose by 19.4% to € 650.6 million in the fourth quarter. The increase was mainly caused by higher sales-related costs, including logistics costs as well as higher marketing and retail investments.

 

Operating Result and Net Earnings

The operating result (EBIT) increased by 46.8% from € 37.6 million last year to € 55.2 million due to a strong sales growth combined with an improved gross profit margin and operating leverage.

Net earnings increased by 55.0% from € 11.5 million to € 17.8 million and earnings per share were up from € 0.08 in the fourth quarter last year to € 0.12 this year.

 

Full Year 2019

 

Sales

PUMA's sales increased by 18.4% reported in the financial year 2019 (+16.7% currency adjusted). All regions and product divisions contributed with double-digit growth.
    
In the EMEA region, sales rose by 11.2% reported to € 2,001.4 million (+11.2% currency adjusted). As a result, the EMEA region exceeded the two billion Euro sales mark for the first time. The main growth drivers were Germany, Spain, Russia, and Turkey.

In the Americas region, sales increased by 20.6% reported to € 1,944.0 million. Currency adjusted sales increased by 17.9%. Both North America and Latin America contributed with double-digit growth rates. Currency exchange effects for North America were positive, while especially the weakness of the Argentinian Peso led to a negative currency effect on sales for Latin America.  

The Asia/Pacific region delivered the strongest sales growth of 26.0% reported to € 1,556.9 million. This corresponds to a currency adjusted increase of 22.8%. Growth in the region was mainly driven by China and India.

In the Footwear division, sales increased by 16.8% reported to € 2,552.5 million. Currency adjusted sales increased by 15.6%. The strongest growth was achieved in the Sportstyle, Running and Training, and Motorsport categories.

In the Apparel division, sales increased by 22.6% reported to € 2,068.7 million (+20.5% currency adjusted) and was also driven especially by strong growth in Sportstyle, Running and Training as well as Motorsport categories. As a result, sales in the Apparel division exceeded the two billion Euro sales mark for the first time.

The Accessories division showed a sales increase of 13.5% reported to € 881.1 million. This corresponds to a currency adjusted sales growth of 11.1%. Higher sales of legwear, bodywear and Cobra golf clubs contributed to the increase.

Wholesale continued to drive growth with an increase of 15.0% 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 22.0% currency adjusted to € 1,395.3 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 25.4% of total sales in 2019 compared to 24.3% in 2018. 

 

Gross Profit Margin and Operating Expenses

PUMA's gross profit in the financial year 2019 increased by 19.4% from € 2,249.4 million to € 2,686.4 million. The gross profit margin improved by 40 basis points from 48.4% to 48.8%. The main drivers were product mix, regional mix, channel mix as well as a slightly positive currency effect. Gross profit margin improved in Footwear from 45.8% in 2018 to 46.4% in 2019, in Apparel from 50.9% to 51.1% and in Accessories from 50.3% to 50.5% respectively.

Operating expenses (OPEX) increased by 17.8% and amounted to € 2,271.3 million. The increase was driven by higher sales-related variable costs as well as costs related to IT infrastructure, marketing and our own retail business. The OPEX ratio in percent of total sales decreased from 41.5% in 2018 to 41.3% in 2019. 


Operating Result and Net Earnings

The operating result (EBIT) improved by 30.5% from € 337.4 million in 2018 to € 440.2 million in 2019. This was slightly above the upper end of the revised EBIT guidance of € 420 million to € 430 million. This result was achieved through strong sales growth combined with a higher gross profit margin and operating leverage. EBIT margin went up from 7.3% in 2018 to 8.0% in 2019.

Despite the additional interest expense of € 29.7 million related to the new accounting standard for leases (IFRS 16), the financial result improved slightly from € -24.0 million in 2018 to € -22.6 million in 2019). This positive development is primarily the result of gains from currency conversion differences of € 10.2 million in 2019, compared to a loss from the currency conversion of € -14.4 million last year. 

The tax rate for the full year 2019 amounted to 26.0% compared to 26.7% last year and the total tax expense increased from € 83.6 million in 2018 to € 108.6 million in 2019.

Net earnings rose by 40.0% from € 187.4 million last year to € 262.4 million in 2019. This translated into improved earnings per share of € 1.76 compared to € 1.25 in 2018, considering the 1:10 stock split.

 

 

Working Capital

Despite the significant growth in sales and an increased number of own retail stores, working capital rose only by 9.0% from € 503.9 million to € 549.4 million. Inventories grew by 21.3% from € 915.1 million in 2018 to € 1,110.2 in 2019. Earlier purchase of products to balance supplier capacities and secure product availability, more retail stores and the expected sales growth led to the increase. Trade receivables rose by 10.5% from € 553.7 to € 611.7 million due to active receivables management. On the liabilities side, trade payables increased by 19.6% from € 705.3 million to € 843.7 million, mainly related to purchases of product.

 

 

CashFlow

The free cash flow (before acquisitions) improved by € 181.8 million  to € 331.2 million in 2019. This development was a result of considerably higher earnings before taxes (EBT € +104.2 million) and the only moderate increase in working capital. In addition, the first-time application of the new lease accounting standard (IFRS 16) in the financial year 2019 had a positive effect of € 170.5 million. Without this positive effect, the free cash flow (before acquisitions) in 2019 would have improved by € 11.3 million, despite a significant increase of investments in fixed assets of € 88.2 million in 2019 compared to last year. Please refer to the Notes to the Consolidated Financial Statements, chapter 1 General, for a detailed description of the effects of the first-time application of IFRS 16 Leases.

As of December 31, 2019, PUMA’s cash position amounted to € 518.1 million compared to € 463.7 million at the balance sheet date last year.

 

 

Proposal of a Dividend of € 0.50 per share

Based on PUMA’s continued positive business development in 2019 with an improvement of profitability and cash flow, the Management Board and the Supervisory Board of PUMA SE will propose to the Annual General Meeting on May 7, 2020, a dividend of € 0.50 per share for the financial year 2019 (last year € 0.35). This represents a payout ratio of 28.5% as a percentage of net earnings, in line with PUMA SE's dividend policy, which foresees a payout ratio of 25% to 35%.


 

Brand and Strategy Update

In 2019, PUMA continued to work hard towards our ambition of becoming the fastest sports brand in the world. To further strengthen our sports performance positioning we entered into many new partnerships with internationally renowned football clubs and increased the brand’s visibility at key sports events globally through great performances of our sponsored athletes and teams. 

PUMA has set out six strategic priorities: brand heat, a competitive product range, a leading offer for women, improving our distribution quality, organizational speed and building our sports performance credibility in the US through our re-entry into Basketball.

In our Teamsport category, 2019 started with a big announcement, as we launched our partnership with Manchester City in February. This deal is PUMA’s largest ever, both in terms of scope and ambition. We were also excited to welcome Pep Guardiola, one of the most celebrated football managers in the world, as a brand ambassador.

In Spain, we signed Valencia CF, one of the most respected clubs in Spanish football. We also became the official match ball partner of Spanish football league LaLiga Santander and LaLiga 1|2|3. All goals in one of Europe’s strongest professional football leagues are scored with the PUMA LaLiga 1 football.

PUMA is now in the position to have a title-contending presence in all major football leagues and with the national teams of Egypt and Morocco recently joining the PUMA family, we now sponsor 12 federations.

One of the highlights of the football year was the Women’s World Cup in France, during which PUMA sponsored team Italy and 78 PUMA players ensured high visibility for the brand.

Our PUMA teams and athletes were also successful in other teamsport events around the globe such as Handball, Netball, Australian Rules Football, Cricket, and Rugby.

The World Athletics Championships in Doha were an important event for our track and field athletes. PUMA was highly visible during the competition, as we supported a total of 115 athletes and twelve national federations. Norwegian hurdler Karsten Warholm successfully defended his title over 400m hurdles and was later voted European Male Athlete of the Year. During the competition 22 medals were won by athletes wearing PUMA.

In June of 2019, PUMA signed rising pole vault star Armand “Mondo” Duplantis, a partnership that already proved very successful. The US-born Swede broke the world record twice in early 2020, most recently setting it at 6 meters 18 at the World Athletics Indoor Tour in Glasgow.

 
PUMA also welcomed new partners in Motorsport. We signed a long-term agreement with Porsche as well as a separate collaboration with Porsche Design to create premium lifestyle products.

Our Formula 1 teams Mercedes AMG Petronas, Scuderia Ferrari and Aston Martin Red Bull Racing once again dominated the Formula 1 season, where PUMA further expanded its leading presence by becoming the official trackside retail partner for F1 race weekends. Our brand ambassador Lewis Hamilton was crowned Formula 1 Champion for the sixth time.

PUMA also partnered with W Series, the first racing competition for upcoming female talent in motorsport.

In our Golf category, we celebrated the 10-year anniversary with golf ambassador Rickie Fowler, one of the most vibrant ambassadors of the brand. The latest addition to our roster of golf players, Gary Woodland, won the US Open in June.
 
In PUMA’s first full NBA Basketball season - after our return to the sport in 2018 - Toronto Raptors shooting guard Danny Green was the first PUMA athlete to win the NBA Finals since Isiah Thomas in 1990. With the support of JAY-Z, our Creative Director for basketball, we continued to launch additional performance basketball shoes including the UPROAR and the CLYDE HARDWOOD. We also signed new highly talented NBA players such as RJ Barrett (New York Knicks), Kyle Kuzma (Los Angeles Lakers) and Marcus Smart (Boston Celtics). Our products were very visible on court throughout the NBA Season, the All-Star Game, the Playoffs and the NBA Finals.

Only last week, we also signed a multi-year partnership with Grammy-winning recording artist J. Cole, a brand ambassador who combines basketball, fashion and music culture.

One of our most successful Footwear styles in 2019 was the RALPH SAMPSON, a classic basketball silhouette. This shows that were are generating credibility in basketball, which we leverage into other categories. In the “chunky”-shoe category, the RS-X-franchise continued to resonate well with our customers. The CALI franchise, presented by PUMA’s ambassador Selena Gomez, continued to do well within the women’s lifestyle category. Other key styles included the PUMA FUTURE football boot and running & training shoes based on our LQD CELL and HYBRID technology platforms. In the fourth quarter, we launched the RS-X3, CALI SPORT and the RIDER, which is inspired by one of the jogging shoes launched in the 1980s. With these models, we see ourselves in a good starting position for 2020. 

Our women’s brand ambassadors contributed with individual collections in 2019: Selena Gomez launched her second collection. Cara Delevingne teamed up with PUMA and French luxury fashion house Balmain, while Adriana Lima presented a line of boxing inspired styles. Overall, we saw strong growth across our Apparel portfolio, especially from “Big Cat” logo applications and motorsport.

As eSports is becoming increasingly relevant for our consumers, PUMA announced its first-ever partnership in virtual sports with eSports team cloud9. We also for the first time created products specifically around the needs of eSports athletes and gamers, such as an active gaming seat andgaming shoe. Through these partnerships, we are in a position to benefit from the fast-growing gaming and eSports markets. 
Our first smartwatch launched in partnership with Fossil Group and Qualcomm helps athletes train, stay motivated, track goals and connect with others while on the go.

In August, we opened our New York flagship store on Fifth Avenue, which provides a deeply immersive brand experience. Customers can find the latest PUMA products, race down the streets of NYC in our Formula 1 race simulators, test the latest PUMA football boots in a virtual San Siro Stadium or personalize their shopping in our customization studio.

On the operational side, we continued to invest in our distribution and logistics network. The construction of our new highly automated multichannel distribution center in Geiselwind, Germany is largely finished and the installation of the intralogistics system has started. Geiselwind is expected it to be operational in early 2021 as planned. In addition, PUMA North America announced the opening of a new also highly automated distribution hub just outside of Indianapolis for 2020.

In addition to our business priorities, social, economic and environmental sustainability remains a core value for PUMA. In 2019, we already achieved 9 out of our 10FOR20 sustainability targets and developed our next set of targets for 2025, which will be announced in 2020. We continued our leading role in the Fashion Charter for Climate Action under the umbrella of UN Climate and joined the Fashion Pact, a global coalition of fashion companies, suppliers and distributors which seeks to make the industry as a whole more sustainable. Our long-standing social compliance program is recognized by the Fair Labor Association and we have been an accredited member since 2007.

 

 

Outlook 2020

Our business developed strongly in 2019, both in terms of sales and profitability. We are confident that the positive development will continue in 2020. 
 
For the full year 2020, we therefore expect currency adjusted sales growth of around 10%. We forecast the gross profit margin to show a slight improvement compared to last year (2019: 48.8%) and operating expenses (OPEX) to increase at a slightly lower rate than sales. Based on the current exchange rate levels we expect an operating result (EBIT) for the financial year 2020 in a range between € 500 million and € 520 million (2019: € 440.2 million). We also expect a significant improvement of net earnings in 2020.
 
The corona virus has negatively impacted our business since the beginning of February. This is especially true in China where more than half of both own and operated and partner stores are temporarily closed due to restrictions of the local authorities. Business is further impacted in other markets, especially in Asia, due to decline of Chinese tourism business. We expect this also to have a negative impact on our total Sales and EBIT for the first quarter 2020.
 
The uncertainty regarding the duration of the COVID-19  outbreak and the total impact it could have makes it difficult to forecast the business, but we are currently working under the assumptions that the situation will normalize in the short term and that we then will be able to achieve our full year targets.

Find our Financial Calendar for the Full Year 2020 here.

 

Boston, massachusetts; february 21st, 2020
BEYOND RECYCLING: SPORTSWEAR COLLECTION BY PUMA AND FIRST MILE EMPOWERS COMMUNITIES IN NEED
Global sports brand PUMA and First Mile have co-created a sportswear collection made from recycled plastic, rooted in social impact and human connection.

Crafted to help you perform your best during any workout, the PUMA x FIRST MILE collection consists of shoes and apparel made from recycled yarn that is manufactured from plastic bottles collected in the First Mile network.

The First Mile is a people-focused network that strengthens micro-economies in Taiwan China, Honduras, and Haiti by collecting plastic bottles to create sustainable jobs and reduce pollution. The bottles are then sorted, cleaned, shredded, and turned into yarn, which is later used to create products with purpose that truly empower from the first mile forward.

“Even though one of the key benefits of this partnership is social impact, the PUMA and First Mile program has diverted over 40 tonnes of plastic waste from landfills and oceans, just for the products made for 2020. This roughly translates into 1,980,286 plastic bottles being reused,” said Stefan Seidel, Head of Corporate Sustainability for PUMA. “The pieces from this co-branded training collection range from shoes, tees, shorts, pants and jackets—all the apparel is made of at least 83% to even 100% from the more sustainable yarn sourced from First Mile.”

The collaboration with First Mile is part of PUMA’s commitment to reduce its environmental impact and live up to its code of being “Forever Better”.

“We hope that whoever buys this collection feels good about this purchase, not just in terms of choosing something that uses sustainable material, but knowing that those entrepreneurs in the First Mile are being connected to this product because it’s their material going into it,” said Kelsey Halling, Head of Partnerships at First Mile. “The more we can connect that last mile with the first mile, the easier this sustainable movement will be able to continue.”

The first PUMA x FIRST MILE training collection will be available starting February 21st, 2020, in PUMA.com, PUMA Stores, and selected retailers worldwide.

To learn more about PUMA’s commitment to sustainability, visit PUMA.com/FOREVERBETTER

 

Herzogenaurach, Germany; February 27th, 2020
PUMA supports women and girls in sport for international women´s day

Ahead of International Women’s Day, sports company PUMA will support girls and women in sport by giving away ultraviolet laces with every footwear purchase and will make a donation of up to 100,000 euros to Women Win, an organization delivering girls’ sport programs across the globe.

PUMA’s ultraviolet laces make a bold visual statement  and come with the message “Forever Tied Together”. Beginning March 1, the laces will be given away with every footwear purchase at select retail locations globally, and for every pair of laces produced, PUMA will make a donation of 1 euro. 

PUMA has also called on its network of ambassadors, athletes, and social fans to sport the laces. For every unique Instagram post that includes the laces and #PUMAWomen, PUMA will donate 1 euro. On the days leading up to International Women’s Day, PUMA will make additional donations for every minute played and goal or point scored by our athletes. The social media campaign and the donations made based on our athletes’ performances will contribute up to 25,000 euros to the total contribution to Women Win of up to 100,000 euros. 

 

PUMA Cali with purple laces

Founded in 2007, Women Win has given millions of girls and women across the world the opportunity to play sports and build leadership skills. The organization currently supports initiatives in Asia, the Pacific, Africa, Europe, and the Middle East as well as North, South and Central America.

The laces will be available at select PUMA stores and retail partners around the world, ahead of International Women’s Day on March 8.

Cape Town, South Africa, February 27, 2020
PUMA signs long term deal with ASA
Global sports brand PUMA has signed a multi-year deal with Athletics South Africa (ASA) which will see all team SA athletes in PUMA for the first time at the 2020 Africa Cross Country Championship in April.

PUMA, as the official sponsor of ASA, has acquired branding rights, licensing rights and the opportunity to create experiential moments and pop-up retail at ASA Junior and Senior Champs, to bring excitement and energy to these events in a PUMA style. All SA athletes will wear PUMA kits at all IAAF events, but the deal does not include the Olympic Track & Field team.

PUMA has a long and rich history in Track & Field, having sponsored the Jamaica Athletics Administrative Association since 2002. The brand also kits out several national federations including Cuba, Bahamas, Trinidad and Tobago, Grenada, Dominican Republic, Norway, Switzerland and Portugal. Individual athletes include Usain Bolt, World Champion long jumper Tajay Gayle, World Champion 400m hurdler Karsten Warholm, pole vault star Armand "Mondo" Duplantis, triple Olympic medalist Andre De Grasse, and triple jumper Will Claye. South Africa stars Luke Davids, Thando Roto, Hericho Bruintjies, Rikenette Steenkamp, Wenda Nel and Gena Lofstrand.

 

PUMA also launched the School of Speed in 2016. Headed by the World’s Fastest Man, Usain Bolt, the thrilling school athletics series aims to identify exceptional young South African Track & Field athletes.

“Track and field has always been a part of PUMA’s heritage and we are proud to be able to collaborate with the South African athletics federation, outfit one of the world’s leading teams and help to develop athletes for tomorrow’s success,” says Pascal Rolling, Head of Sports Marketing Running for PUMA.

ASA President Aleck Skhosana said: “It’s a pleasure for ASA to partner with one of the most renowned brands in the world. In particular we are excited that our new partner, PUMA, is in familiar territory in terms of sporting discipline and the athletes that they are sponsoring in South Africa. We look forward to a cordial, long-term relationship”.

 

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