PUMA today announced the signing of Killian Hayes, one of France's most promising young athletes, who will serve as a global ambassador for the brand. The Detroit Pistons NBA player becomes PUMA’s first men's basketball ambassador in France, which is part of PUMA’s plan to grow its basketball roster worldwide.
The new shoeboxes, which have been rolled out in 2021, are just one element of PUMA’s commitment to make its retail supplies more sustainable. By 2023, the company will also no longer use plastic bags in its stores and will also switch other retail supplies, such as hangers and shoe trees, to more sustainable alternatives.
“If we consider that it takes about 12 trees to make a tonne of cardboard, we are saving 33,600 trees every year. That is more than the number of trees in Central Park in New York,” said Stefan Seidel, Head of Corporate Sustainability at PUMA. “Such initiatives, which are part of our 10FOR25 Sustainability Strategy, help us make a positive impact at scale.”
The new shoeboxes are just as sturdy as their predecessors and are made of more than 95 % recycled cardboard.
Earlier this year, PUMA announced a partnership with not-for-profit environmental organization Canopy and said it would source all of its cardboard and paper packaging from recycled or certified sources to ensure they are not derived from the world’s most egral forests.
PUMA’s 10FOR25 targets cover a wide range of sustainability topics including Climate Action, Human Rights, Circularity as well as Plastics and the Ocean. The targets are aligned with the United Nations Sustainable development goals and ensure that PUMA works on making its core business more sustainable.
“The third quarter was another very strong quarter for us. Despite a lot of operational problems, we grew our sales by 20% and were able to increase our EBIT from € 190 million to € 229 million in the quarter.
A COVID-19 related lockdown of production in South Vietnam, an overheated global freight market with high rates and a lack of capacity, port congestion and a very difficult market situation in China were hurdles we had to overcome in the quarter. Demand for our products was high, our teams worked very hard to deliver as much product as possible and we continued to be as flexible and service-minded for our partners as we could be.
We foresee the high demand for our products to continue, but we also see supply constraints continue to be a problem for the rest of the year.
We will continue to maneuver through the operational problems as well as possible, but we will also continue to invest in our brand, products and infrastructure for the mid and long term.
The outlook for our industry in general and for PUMA in particular is in my opinion very positive.”
Sales increased by 20.4% (ca) to € 1,900.4 million (+20.0% reported). The Americas reported the strongest growth of 31.2% (ca), driven by continued high demand for the PUMA brand in the North American and Latin American markets. EMEA recorded growth of 22.3% (ca), which was driven by strong demand in Europe and emerging markets such as Russia, Turkey and South Africa. Asia/Pacific grew 1.7% (ca) despite a difficult market environment in Greater China and COVID-19 related lockdowns in markets such as Japan, South East Asia and Australia. In terms of product divisions, Footwear was up by 21.6% (ca), based on continued strong demand for our Performance and Sportstyle categories. Apparel (+21.3% ca) and Accessories (+15.2% ca) also showed double-digit growth in the third quarter of 2021.Compared to the third quarter of 2019, total sales were up 35.4% (ca).
PUMA’s Wholesale business grew by 22.6% (ca) to € 1,470.5 million and the Direct-to-Consumer (DTC) business increased by 13.3% (ca) to € 429.9 million, with growth across owned & operated retail stores (+18.0% ca) and e-commerce (+4.0% ca). In line with our strategy to be a good and reliable partner for our wholesale accounts, we continued to prioritize them when supply was limited.
The gross profit margin in the third quarter improved by 40 basis points to 47.4% (Q3 2020: 47.0% / Q3 2019: 49.7%). The improvement in gross profit margin was driven by better sell-through and less promotional activity, while currency, geographical and channel mix effects as well as higher freight rates had a negative impact.
Operating expenses (OPEX) increased by 21.2% to € 678.0 million (Q3 2020: € 559.6 million / Q3 2019: € 578.5 million) as a result of higher marketing expenses, more retail stores operating as well as higher sales-related distribution and warehousing costs. PUMA continued to face operating inefficiencies especially in our supply chain in the third quarter due to COVID-19. Consequently, the OPEX ratio increased from 35.3% in the third quarter of 2020 to 35.7% in the third quarter of 2021 (Q3 2019: 39.2%).The operating result (EBIT) in the third quarter increased to € 228.9 million (Q3 2020:€ 189.5 million / Q3 2019: € 162.2 million) due to strong sales growth, improved gross profit margin and continued OPEX control. This resulted in an EBIT margin of 12.0% in the third quarter of 2021 (Q3 2020: 12.0% / Q3 2019: 11.0%).
Net earnings increased from € 113.6 million to € 143.8 million and earnings per share improved from € 0.76 in the third quarter of 2020 to € 0.96 in the third quarter of 2021.
Sales increased by 39.1% (ca) to € 5,038.3 million (+35.6% reported). The strong sales development was driven by double-digit growth rates in all regions and product divisions.Compared to the first nine months of 2019, PUMA’s sales grew 32.0% (ca).
The Wholesale business was up 42.0% (ca) to € 3,872.5 million while the Direct-to-Consumer business (DTC) increased by 30.3% (ca) to € 1,165.8 million with growth in owned & operated retails stores (+35.0% ca) as well as e-commerce (+22.5% ca).
The gross profit margin in the first nine months of 2021 improved by 130 basis points to 47.8%(9M 2020: 46.5% / 9M 2019: 49.4%). The improvement in gross profit margin was driven by better sell-through and less promotional activity, while geographical and channel mix effects had a negative impact.
Operating expenses (OPEX) increased by 20.9% to € 1,929.5 million (9M 2020: € 1,596.4 million / 9M 2019: € 1,620.7 million). Higher marketing expenses, a higher number of retail stores in operation, higher sales-related distribution and warehousing costs, as well as operating inefficiencies due to COVID-19 contributed to this increase. However, the respective OPEX ratio decreased from 43.0% in the first nine months of 2020 to 38.3% in the first nine months of 2021 (9M 2019: 40.3%) due to higher sales growth and continued OPEX control.
The operating result (EBIT) in the first nine months of 2021 increased significantly to € 492.1 million (9M 2020: € 145.9 million / 9M 2019: € 385.0 million) due to strong sales growth, higher gross profit margin and continued OPEX control. This led to an improved EBIT margin of 9.8% in the first nine months of 2021 (9M 2020: 3.9% / 9M 2019: 9.6%).
Net earnings increased from € 54.2 million to € 301.7 million and earnings per share were up from € 0.36 in the first nine months of 2020 to € 2.02 in the first nine months of 2021.
The working capital increased by only 2.3% to € 719.0 million (September 30, 2020: € 703.2 million / September 30, 2019: € 915.7 million). Inventories which include Goods in Transit were up by 11.6% to € 1,363.9 million. The COVID-19 related lockdown in South Vietnam and corresponding delays restricted the product supply and consequently limited inventory levels at the end of the third quarter. As a result of the strong sales development in the third quarter, trade receivables rose by 39.0% to € 1,058.6 million. On the liabilities side, trade payables were up by 28.4% to € 1,202.8 million.
2021 started with an all-time high of COVID-19 cases globally and continued restrictions for our operations in numerous markets as well as supply chain constraints due to container shortages and port congestion. In addition to the implications from the COVID-19 pandemic, political tensions in some of our key markets also had a significant impact on our business. Despite the uncertainty, PUMA has maneuvered well throughout the first nine months of the year, based on continued brand momentum, successful product launches with high sell-through and a strong focus on flexibility in our operations.
Considering the strong financial performance in the first nine months of the year, PUMA further specifies its outlook and now expects the currency-adjusted sales to increase at least 25% (previous outlook: at least 20% currency-adjusted sales growth) in the financial year 2021. The operating result (EBIT) is now expected to be in a range between € 450 million and € 500 million (previous outlook: between € 400 and € 500 million). In line with the previous outlook, PUMA does not provide a detailed outlook on the gross profit margin and OPEX development. The net earnings are still expected to improve significantly in 2021.
As a result of the longer-than-expected lockdown in South Vietnam as well as port congestion and container shortages, the industry faces delays, which are having a negative impact on PUMA’s product supply in the short-term. PUMA will continue to maneuver through these challenges by building on its brand momentum and operational flexibility. The strong and profitable growth in the first nine months of 2021, a strong product line up as well as very good feedback from retail partners and consumers make us confident for the mid-term success and growth of PUMA.
Sports company PUMA has developed an experimental version of its most iconic sneaker, the SUEDE, to test for a product to make it biodegradable. By doing so, PUMA aims to meet the growing demand for sustainable products for a better future. The RE:SUEDE, which uses the latest technology available today, will be made from more sustainable materials such as Zeology tanned suede, biodegradable TPE and hemp fibres.
The RE:SUEDE experiment is a pilot in circularity, and today’s ultimate expression of the next generation SUEDE – with the ambition to set new standards of sustainability for the iconic shoe. Designed to help address the challenge of waste management in the footwear industry, the RE:SUEDE experiment will allow PUMA to take more responsibility when it comes to tackling the ‘after life’ of its products. The pilot will launch in 2022, offering 500 selected participants in Germany the chance to join PUMA on its experimental journey towards circularity.
In partnership with PUMA, participants will wear their RE:SUEDEs for six months to test out the durability of a product using biodegradable materials in real life, before sending them back to PUMA via a take back infrastructure, designed to move the products to the next step in the experiment. The sneakers will then be subject to an industrial biodegradation process in a controlled environment at Valor Compostering B.V., owned by Ortessa Groep B.V., a family-run business of waste specialists in the Netherlands. The goal of this step is to determine if Grade A compost can be produced for agricultural use. The findings will help PUMA assess the biodegradable process and unpick essential research and development for the future of sustainable shoe consumption.
The RE:SUEDE experiment is the first circular programme to launch under PUMA’s “Circular Lab” – a new innovation hub, which is led by PUMA’s sustainability and design experts who work to develop the future of the company’s circularity programmes.
This pilot is a recharged, refreshed experiment in circularity, following PUMA’s exploration in the space in 2012, which saw the brand’s first attempt to create a biodegradable sneaker as part of its InCycle collection. Yet after four seasons, the sneaker was discontinued due to low demand and the need for further research and development.
Since 2012, PUMA’s innovation department has worked to address the technological limitations of the InCycle collection in order to apply such learnings into the RE:SUEDE experiment. Improvements include the use of new, innovative materials such as Zeology suede, which is made using a more sustainable tanning process and ensures better comfort for the wearer, when compared to other biodegradable materials evaluated at PUMA. The outsole of the RE:SUEDE has also been improved to ensure optimal wear.
“In 2012, our circular ambition was bold but the technology wasn’t quite there. As they say, with every challenge there’s an opportunity - and we’ve continued to push ourselves to do better by applying our strengths as well as acknowledging and improving on our weaknesses,” said Heiko Desens, PUMA’s Creative Director. “We hope that progress made during the RE:SUEDE experiment: ‘No Time For Waste‘ will help us continue to raise the bar in circularity testing – enabling our consumers to make better fashion choices in the future, so their sneakers can go ‘from Suede to Soil’, without compromising on product style or durability during ownership.”
About the partnership with Ortessa, Desens further comments: “We’re excited to partner with the experts at Ortessa, who share our passion in developing proactive and pragmatic solutions to the industry‘s waste problem. Their expertise is fundamental in helping us learn more about the after life of the RE:SUEDE, so we can continue moving forwards on our exploration of circularity.“
Rob Meulendijks, CEO of Ortessa comments: “As a family owned challenger in the waste industry, we pride ourselves in creating surprising innovations and fresh concepts to tackle real waste issues in a different and open way. There is a lot more we can all be doing to help tackle waste management, but taking on that challenge alone can be a difficult task for any brand. We are delighted to be working in partnership with PUMA on this special project, where we can apply our deep knowledge and insights on waste, use tried and controlled methods, to assess the biodegradability of the future, next-generation SUEDE.“
PUMA aims to share the results and insights gained from this experiment within the industry to achieve an even bigger impact when it comes to addressing the challenge of waste management in the footwear industry in general. Circularity is one of the pillars of PUMA’s FOREVER BETTER sustainability strategy. By 2025, PUMA aims to reduce waste by increasing the level of recycled polyester in its products to 75%, setting up product takeback schemes in its major markets and developing recycled material options for leather, rubber, cotton and polyurethane.
Since its first iteration in 1968, the PUMA SUEDE has been at the forefront of cultural turning points, transcending style and trends. With the RE:SUEDE, PUMA wants to give its consumers a stylish and more sustainable choice, while showcasing the latest technologies.
The current 400m hurdles world record holder and World Athlete of the Year 2021 Karsten Warholm speaks about his motivation to stay at the highest level in sports and how he set his record-breaking performance, in a video interview with sports company PUMA.
PUMA Ambassador and Norwegian athlete Karsten Warholm shares his motivation to become the number one in PUMA’s “Only See Great” campaign
WHILE MANY TITLES AND MEDALS FOLLOWED, WARHOLM SAYS HIS BIGGEST INSPIRATION IS HIS LOVE FOR THE SPORT.I do this because I really enjoy it. And the only thing that’s better than one gold medal… is two.
The postponement of the Olympic Games last year took their toll on motivation, but Warholm said the delay also helped him raise the bar: “The mindset comes back again because you need to try to turn the tables and see if you can make this an advantage. I was able to continue the training and I think, if it wasn’t for the pandemic, I wouldn’t have been able to run 45.94 at the Olympics.”
Warholm says he fully embraces the vision of “Only See Great”: “Every time I step on a track, I try to give it my all and I hope people see that and get inspired by the way I’m attacking my races. I think attitude is something that we can all have, and we can all learn.”
The idea for PUMA’s “Only See Great” campaign was inspired by cultural icon, entrepreneur and philanthropist Shawn “JAY-Z” Carter who first said: “I only see great. I don’t see good. I don’t see compromise. We should always strive to make something great, something that will last.”
“Growing up, I saw PUMA play an important part in African sports, sponsoring many different football federations”, said Davido. “I also saw the kind of family PUMA had built with the likes of Usain Bolt, Maradona, Neymar, Jay Z, Nipsey, Rihanna, Lewis Hamilton among other super stars and I thought, that’s an amazing family to be a part of! All these contribute to my excitement to collaborate with this brand and take it to the next level in Nigeria, Africa as well as with fans across the world.”
Deon Jones to conduct powerful conversations with leaders, artists, creators, activists and more.
“I want my work with PUMA to always inspire and be meaningful. To have the opportunity to do this with the full backing of my PUMA family means a lot,” said Deon Jones. “I want these conversations to make all of us better.”
“Deon is an impactful young talent at the intersection of music, art, culture and advocacy,” said Adam Petrick, Global Director of Brand and Marketing at PUMA. “Having the opportunity to work with him and be a leader in these conversations is special and is what we strive to do with our #REFORM platform”.
In addition to the digital series, PUMA will continue to support and Deon’s impact efforts within the community.
“I’m a firm believer in legendary singer Nina Simone’s teaching that ‘the role of the artist is to reflect the times’,” said Deon Jones. “And, in this time, it's important to me that my platform and voice is rooted in contributions that challenge and move us forward, and PUMA has been ahead of the curve for many years in that effort.
The first episode of “Is Anyone Listening?” will air in January with June Ambrose, who will talk about women in sports, making an impact in a male dominated industry and more.
At International level Jorginho made his debut in 2016, quickly becoming an integral part of Roberto Mancini’s Azzurri side, capturing the EURO 2020 Championship™ and being named in the Team of the Tournament for his many outstanding performances.
“Greatness is doing things that no one has ever done before”
The world record holder and retired Jamaican sprinter Usain Bolt speaks about his motivation to become the greatest sprinter of all time in a video interview with sports company PUMA.
While many titles, world records and medals followed, Bolt says that “dominating throughout the years is very important to the legacy that I built for myself. Anybody can win one Olympics, but to actually win three back-to-back Olympics over the span of eight to ten years is very difficult. For me, that’s how I kept myself motivated and focused because I didn’t skip a year, I didn’t focus on four years to come, I focused on every year throughout, because those years were also important to dominate and to keep training and work at a high level. He admits that he missed being at the 2020 Olympic Games in Tokyo last year: “When I watched the Olympics, I really missed it. Especially watching the Mens’ 100m and not seeing a Jamaican in the finals really made me miss it and really wanted to be there. For me, the girls did extremely well for Jamaica. They really showed up. Again.” Bolt says he fully embraces the vision of “Only See Great”. “Greatness is just being yourself and dominating at a high level over years and doing things that no one has ever done before”, added the World’s fastest man.
The idea for PUMA’s “Only See Great” campaign was inspired by cultural icon, entrepreneur and philanthropist Shawn “JAY-Z” Carter who first said: “I only see great. I don’t see good. I don’t see compromise. We should always strive to make something great, something that will last.”
Disclosure of inside information according to Article 17 Market Abuse Regulation. PUMA SE (ISIN: DE00069696303 WKN: 696960) PUMA WAY 1, D-91074 Herzogenaurach
Due to the continued brand momentum and a strong global demand, PUMA achieved a currency-adjusted sales growth of approx. 14% to € 1,767 million in the fourth quarter 2021 (Q4 2020: € 1,520 million). This growth was achieved despite the negative impact from the COVID-19 pandemic and continued supply chain constraints. On a preliminary basis, the operating result (EBIT) increased to € 65 million (Q4 2020: € 63 million) in the same period.
In the financial year 2021, PUMA achieved a currency-adjusted sales increase of approx. 32% to € 6,805 million (2020: € 5,234 million) and an operating result (EBIT) of € 557 million (2020: € 209 million) on a preliminary basis. Both, sales and operating result (EBIT) are the highest PUMA has ever achieved in its history.
A complete overview of PUMA’s financial performance for the year 2021 and its outlook for the financial year 2022 will be published on February 23, 2022.
Myke will work with PUMA on content creation, marketing campaigns and other projects which fuse music, fashion and car lifestyle.
