In the second quarter 2017, consolidated sales increased currency adjusted by approx. 16% (approx. 17% in reported terms) to € 969 million compared to € 827 million in the second quarter last year. The operating result (EBIT) in the second quarter 2017 increased to approx. € 43 million (Q2 2016: € 12 million).

In light of the strong second-quarter increase in sales and profitability as well as the positive business outlook for the current year 2017, PUMA raises the full-year guidance for its consolidated sales and operating result (EBIT). The Management now expects that currency adjusted sales will increase between 12% and 14% (previous guidance: currency adjusted increase at a low double-digit percentage rate). The operating result (EBIT) is now anticipated to come in between € 205 million and € 215 million (previous guidance: between € 185 million and € 200 million). In line with the previous guidance, the Management still expects that net earnings will improve significantly in 2017.

A complete overview of PUMA’s business development for the second quarter 2017 and the first half year 2017 will be published on July 26, 2017.

Kering SA (Paris), the major shareholder of PUMA SE with a current shareholding of approx. 86%, today informed the Administrative Board of PUMA SE that it has decided to propose to the Annual General Meeting of Kering SA on April 26, 2018 to distribute to the shareholders of Kering SA, by way of a dividend in kind, a portion of Kering's shareholding in PUMA which corresponds to approx. 70% of the total share capital of PUMA SE.

Kering SA will remain a shareholder of PUMA SE with a shareholding of approx. 16%. Through the distribution in kind, Artémis SA, the controlling shareholder of Kering SA (and thus indirectly of PUMA SE) will receive shares in PUMA SE, representing approximately 29% of the share capital, and will thereby become a direct and, according to its own statement, also a long-term shareholder of PUMA SE. As a result, the future free float of PUMA SE will amount to approx. 55% after the transaction.

The transaction is subject to approval by the Annual General Meeting of Kering SA to be held on April 26, 2018.

The Administrative Board of PUMA SE welcomes the transaction. Kering SA and Artémis SA will remain strong partners of PUMA. The transaction does not affect PUMA’s current strategy, which PUMA will continue to execute and which has already shown initial results. The transaction is expected to improve the liquidity of the PUMA share as a result of a significantly larger free float, which will make it easier for investors to invest in PUMA SE directly.

COVID-19 has also negatively impacted our business since the beginning of February both in terms of sales and sourcing . 

Impact on Sourcing
China accounts for less than 20% of our international sourcing volume. Factories outside China have not been impacted.  Within China, all of our Tier 1 (finished product) supplier factories are open again and are operating at 80%-100% of capacity. Almost all of our Tier 2 (material) factories are also up and running. PUMA’s outbound logistics are largely in operation with all sea ports now open and most of our transportation on land - from the factories to the sea ports - functioning normally again. Therefore, our global supply chain is currently not at risk apart from minor delays.

Impact on Sales
In China, where most of both owned and operated as well as partner stores were temporarily closed in February due to restrictions imposed by local authorities, sales have been severely affected. There are now early signs of improvement. Most of our stores in China and those of our partners are now open again. Traffic that had initially been extremely low picked up over the weekend. Other Asian markets such as Singapore, Malaysia, Japan and South Korea, which typically benefit from Chinese tourists, continue to see heavy negative effects on sales. Additionally, the virus is spreading into other parts of the world. Despite the spread of COVID-19 in Europe, almost all our stores there are still open. Those in Northern Italy operate under reduced opening hours as enforced by the authorities. Across Europe, we register significantly lower footfall traffic.

Outlook
The outlook we gave on February 19 for the full year 2020 was based on the assumption that the situation regarding the COVID-19 virus would normalize in the short term. Given the duration of the situation in China, the negative impact in other Asian countries and now also the spread to Europe and the US, we unfortunately have to conclude that a short-term normalization will not occur.
The development over the coming weeks and  months is impossible to predict and we currently cannot quantify the negative effect this could have on our full-year revenue and earnings
We will of course manage this situation as best we can short-term, but at the same time continue to work on strengthening our brand, so we can continue our momentum with good growth in both revenue and earnings when the situation normalizes.

Apart from China, Japan and South Korea, almost all of PUMA’s own stores as well as those of PUMA’s partners have been temporarily closed by the authorities.  PUMA’s e-commerce business, while still operational in almost all markets, accounts for less than 10% of the business.  This has, of course, led to a major decline in net sales and cash inflow. It is currently impossible to foresee how long this situation will last. In order to get through this crisis, we are working closely with all our partners such as retailers, suppliers, landlords, banks, and authorities. 

PUMA is reducing costs and cash outflow wherever possible as well as securing additional financing to ensure that together with our partners we can sustain the value chain in this period. The goal is to get through this crisis together. We now focus on managing the short-term challenges as well as possible, but without hindering the midterm momentum for the company.

Ensuring financing through this crisis is key and we believe suspending dividend payments as well as suspending the Management Board’s salary 100% and reducing that of our senior management by 25% are the right measures given the circumstances.

Due to the spread of Sars-CoV-2 in Germany and the contact bans mandated by authorities, the Management Board and the Supervisory Board of PUMA SE have decided to hold the Annual General Meeting on May 7, 2020 as a digital meeting only. The invitation for the meeting will be published by April 15, 2020 at the latest. According to the COVID-19 Mitigation Act which came into force on March 28, 2020 - in order to avoid large gatherings of people - general meetings may be held without the physical presence of shareholders or their proxies. PUMA’s Annual General Meeting on May 7, 2020 will meet all conditions required by the new law. Moreover, to ensure consistent communication in a fast-changing business environment impacted by Sars-CoV-2, PUMA has decided to move the date of the publication of the results for the first quarter of 2020 by one week from April 30, 2020 also to May 7, 2020.

In light of the strong second-quarter growth in sales and profitability but also taking into consideration the continued uncertainties related to the COVID-19 pandemic, political tensions in key markets and supply chain constraints due to container shortages and port congestion, PUMA now expects the currency-adjusted sales to increase by at least 20% (previous outlook: mid-teens currency-adjusted sales growth) in the financial year 2021. Our outlook for the operating result (EBIT) has been further specified and is now anticipated to come in between € 400 million and € 500 million (previous outlook: significant improvement). In line with the previous outlook, we do not provide a detailed outlook on our gross profit margin and OPEX-ratio. Our net earnings are still expected to improve significantly in 2021.
The achievement of our outlook is subject to continued manufacturing operations in our key sourcing countries such as Vietnam and China and no major interruptions due to COVID-19. 

A complete overview of PUMA’s business development for the second quarter 2021 will be published on July 29, 2021.

He is receiving a contract for four years, effective January 1, 2023. Arne Freundt has worked for PUMA for more than ten years and has been a member of the Management Board as Chief Commercial Officer since June 2021. Bjørn Gulden’s mandate as member of the Management Board of PUMA SE expires at the end of 2022.