Negative Impact of Volatile Currencies Continues

2014 Second Quarter Facts

• Currency adjusted sales increase slightly to € 652 million
• Gross profit margin improves to 46.7%, up 70 basis points vs. last year
• OPEX stable despite World Cup marketing expenditures
  EBIT of € 13 million

2014 Half Year Facts

• Currency adjusted sales flat at € 1.38 billion
• Gross profit margin stable at 47.7%
• Slight OPEX reduction of 1.2%
• EBIT of € 71 million
• EPS amounts to € 2.66
• Free cash flow increases by € 40 million due to improved working capital
• Successful launch of Arsenal partnership

Key sales figures at a glance

Bjørn Gulden, Chief Executive Officer of PUMA SE: “PUMA’s second quarter sales and operating profit developed in line with our expectations. I was very happy with PUMA’s visibility during the World Cup in Brazil. Feedback on both our dual-colored Tricks football boots and our national team jerseys with ACTV technology has been great. The sell-through of these products has been excellent and exceeded our expectations. In addition, we celebrated a successful Arsenal launch in July, followed by very good initial sales at Retail of Arsenal replica jerseys. We are now looking forward to launching our new “Forever Faster” marketing campaign in August, which is another step in the process of becoming the “fastest sports brand in the world”. But, as I have said all along: We know that the repositioning of PUMA and the turnaround of the business will take time. However, I feel we are making progress on all our key strategic priorities and we have initiated the right projects to make 2014 the start of the turnaround.”

Second Quarter 2014

Sales increase slightly

PUMA’s consolidated sales in the second quarter of 2014 were in line with expectations, rising by 0.6% currency adjusted to € 652 million. However, due to continued currency weakness in Turkey, Russia, South Africa, India, Japan and the Americas, sales declined by 5.8% in Euro terms.

Performance in the Americas improves

In the EMEA region, sales declined by 1.4% currency adjusted to € 256 million as strong performances in the United Kingdom and Switzerland could not entirely offset a decline in French and Scandinavian wholesale revenues.

Sales in the Americas increased by 4.6% currency adjusted to € 251 million, as key account initiatives like the PUMA Labs at Footlocker contributed to the performance improvement in North America, and Latin America benefited from increased Teamsport sales, particularly in Chile and Mexico.

Sales in the Asia/Pacific region declined by 2.3% currency adjusted to € 146 million despite solid growth in Korea and India, as performance in Japan was pressured by the sales tax increase at the beginning of the quarter which led to a decline across categories.

Product segment trends continue

PUMA’s currency adjusted Footwear sales declined by 9.1% in the second quarter to € 278 million despite improved Teamsport sales.

Apparel sales, however, improved by 12.8% currency adjusted to € 241 million as the World Cup supported strong performances in replica jerseys as well as training and fan wear, particularly for the Italian, Chilean and African teams.

Accessories sales also improved by 3.4% currency adjusted to € 134 million due to continued demand for PUMA’s socks and bodywear. However, Golf equipment sales declined during the quarter due to the weaker golfing environment.

Gross profit margin improves

PUMA’s gross profit margin increased from 46.0% to 46.7% for the second quarter of 2014 as promotional activities declined compared to the same period last year. Footwear gross profit margin decreased from 44.1% to 42.7% due to the product and category mix. Apparel margins rose from 47.0% to 48.2% and the margin for Accessories increased from 49.2% to 52.4%.

OPEX flat

Operating expenditures were broadly unchanged for the quarter at € 297 million, despite increased marketing expenditures associated with the World Cup in Brazil.

Operating Result (EBIT) declines

The negative currency impact on sales and gross profit led to a decline in PUMA’s operating profit (EBIT) from € 31 million to € 13 million for the second quarter of 2014. The EBIT ratio decreased from 4.5% to 1.9%.

Financial Result

The financial result improved from € -4.1 million to € -1.3 million in the second quarter. The result remained negative due mainly to currency conversion impacts.

Net earnings

PUMA’s consolidated net earnings declined from € 18 million to € 4 million impacted in part by a slightly higher tax rate in the quarter due to tax expenses related to prior years. As a result, earnings per share decreased from € 1.17 to € 0.28 in the second quarter of the year.

Half Year 2014

Currency adjusted sales were flat in the first half of 2014 at € 1.38 billion. Continued currency weakness in the aforementioned countries led to a decline of 6.5% in Euro terms.

Varied regional performance in the first half

Sales in the EMEA region declined by 0.5% currency adjusted to € 593 million, where strong performances in the United Kingdom and Turkey were not enough to entirely offset lower sales in France and Scandinavia.

Currency adjusted sales in the Americas increased by 2.1% to € 486 million with improvements in some major markets including the USA and Canada, while Chile performed well in Latin America.

Asia/Pacific sales declined by 2.2% currency adjusted to € 299 million as decreases in Japan and Oceania could not be fully compensated for by increases in India and Korea.

Apparel and Accessories increase

In terms of product segments, Footwear sales declined by 8.0% currency adjusted to € 598 million in the first half of the year. Sales in Apparel increased by 7.6% currency adjusted to € 487 million, and Accessories sales also rose by 6.6% currency adjusted to € 292 million.

PUMA’s Retail sales rise

PUMA’s retail sales increased by 2.9% currency adjusted to € 270 million in the first half of 2014, equal to 19.6% of total sales, as comparable sales in our stores improved during the period.

Gross Profit Margin stable

PUMA’s half year gross profit margin was unchanged at 47.7%. The decline in Footwear margin from 45.1% to 43.4% was offset by the increase in the Apparel margin from 49.4% to 50.9%. Accessories margin was stable at 50.9% for the first six months of the year.

Slight decline in half year OPEX

PUMA’s operating expenditure improved slightly thanks to continued expenditure discipline despite the higher marketing costs associated with an event year. Half year OPEX improved by 1.2% from € 602 million to € 595 million.

Operating Result (EBIT) lower

Weak currencies continued to impact reported sales and gross profit. PUMA’s EBIT therefore declined from € 110 million to € 71 million for the half year, equivalent to 5.2% of sales. The negative currency development during 2014, particularly in Emerging Markets, had a negative impact of approx. € 15 million on the EBIT, equal to 1.1% of net sales.

Financial Result

For the half year, PUMA’s financial result improved from € -8.0 million to € -4.5 million. The negative result was caused mainly by the impact of foreign currency fluctuations.

Net Earnings / Earnings per share decline

Half year consolidated net earnings fell from € 68 million to € 40 million, with earnings per share declining from € 4.54 to € 2.66.

Net Assets and Financial Position

Working Capital position continues to improve

PUMA’s continued emphasis on the balance sheet delivered positive results. Inventories declined by 7.9% to € 584 million and trade receivables also decreased by 9.8% to € 463 million. As trade payables remained stable, the Group’s working capital improved by 13.0% to € 596 million.

Cashflow / Capex

PUMA’s Free Cashflow improved from € -112 million to € -72 million for the first six months of 2014. This was mainly due to lower Working Capital requirements.

Capital expenditure rose from € 19 million to € 31 million as PUMA continued to invest in the opening and refurbishment of selected retail stores, as well as office and IT equipment.

Net Cash Position

PUMA’s Net Cash Position at the end of the first half of the year improved from € 233 million to € 267 million.

Brand Update

At the 2014 FIFA World Cup™ in Brazil, PUMA’s eight partnered teams secured a strong on-pitch visibility, participating in almost half of all games in the tournament. The World Cup proved to be a great stage for PUMA’s innovative football products: Both our national team jerseys featuring PUMA’s apparel innovation PWR ACTV as well as PUMA’s prominent pink and blue interpretation of its revolutionary evoPOWER and evoSPEED football boots ‘Tricks’, which could be seen in three quarters of all games, were eye-catchers, creating lots of positive headlines. Combined with high engagement rates on our social media channels, PUMA achieved its best ever sell-through of football boots, with Tricks now widely sold out.

Starting July 1st PUMA has become the official kit partner of top English Premier League club Arsenal FC. The company kicked off its new partnership with the launch of the much-anticipated new Arsenal Home, Away and Cup kits for the 2014/15 season. The jerseys were revealed through a spectacular twenty meter high water projection on London’s River Thames viewed from the North Bank, transforming the EDF Energy London Eye into the iconic Clock End. The jerseys generated impressive sell-through in its first week on sale.

The fastest sports in the world, Formula 1, is currently dominated by the world’s fastest team, PUMA-supplied Mercedes AMG Petronas, with 9 wins in the first 11 races. In a thrilling Hungarian Grand Prix ahead of Formula 1′s four-week summer break, Lewis Hamilton finished third after starting from the back of the grid. The Briton reduced the deficit to his teammate Nico Rosberg, who is still leading the drivers’ standings by 11 points after his sensational win of the German Grand Prix at Hockenheim a week before. With PUMA-partnered Ferrari driver Fernando Alonso currently ranking fourth in the standings, almost all the top drivers are equipped with PUMA race wear and the Evo Speed SLW Pro, the lightest shoe in the Motorsports world.

Strategy Update

Our strategy encompasses the repositioning of PUMA as the World’s Fastest Sports Brand, the improvement of our product engine, the optimization of our distribution quality and increasing the speed within our organization and infrastructure. In the second quarter we continued to progress well on all our key strategic priorities that are crucial to ensuring that 2014 marks the start of the turnaround.

In terms of our brand repositioning, we have created the biggest marketing campaign in PUMA’s history and are now ready to communicate the repositioning of PUMA as a true Sports Brand to our consumers and retail partners. The campaign demonstrates how our great athletes like Usain Bolt, Mario Balotelli, Rickie Fowler, Marta, Lexi Thompson and Ferrari are the epitome of our brand values: Brave, confident, determined, and joyful. The campaign will be kicked-off on August 7th in North America, Latin America and Asia-Pacific and will be rolled out to Europe and EEMEA shortly afterwards. The launch of this campaign marks the start of a long-term marketing strategy, with continuous investment up to the Rio de Janeiro Olympic Games in 2016 and beyond.

To improve our product engine, we initiated key projects to improve our product designs, develop more innovative technologies, and increase the commerciality of our product range. The first results have already been implemented for the coming Spring/Summer 2015 season, and the feedback from our retail partners, as well as our initial indications for H1/2015, make us very confident that we are heading in the right direction.

In order to improve the quality of our revenues and distribution, we are developing joint product and marketing programs with our key retailers to showcase our brand in the right retail environment and push sell-through with our partners. The PUMA Lab at Foot Locker, which we launched in Feb 2014, has developed very positively and we increased the presence to 126 doors in the US. The success of the PUMA Lab has not only improved our business with Footlocker but also generated a positive spill-over effect on to other key retailers in the US marketplace – both with performance and lifestyle accounts. In 2015, we will continue to foster our collaborations and will launch further product and marketing programs with our most important key accounts in every Region.

We have also continued to optimize our organizational structure and setup by making it faster. Our PUMA Village development center was closed on May 2nd. Our developers have moved to the sample rooms in our supplier factories and are now closer to the production process. As of May 31st, we have finalized the relocation of our Lifestyle Business Unit from London to our Headquarters in Herzogenaurach and closed the London office accordingly. The relocation of our Global and European Retail Organization from Oensingen, Switzerland, to our Headquarters in Herzogenaurach is progressing well and will be finalized as planned by the end of September.

Outlook for the Financial Year 2014

2014 continues to be a turnaround year for PUMA, where the brand will be re-established in the market place and brought back to a path of profitable and sustainable growth in the mid-term. To support this turnaround, PUMA will continue to invest strongly in marketing and sports assets, while maintaining tight control on other operating expenditures.

Given PUMA’s results in the first half of the year, we continue to expect flat full year currency adjusted net sales and a slight increase in the gross profit margin, as PUMA replaces lower tier distribution with higher tier distribution channels. OPEX is still expected to increase significantly based on increased Marketing investments, particularly in the second half of the year. PUMA’s full year guidance for EBIT and Net Earnings (approx. 5% and 3% of net sales respectively) remains unchanged from the first quarter; we reiterate that the continued volatile currency movements may have a negative impact of around 50 basis points on the EBIT and Net Earnings margin for the year.

Change of Managing Director

Andy Koehler, Chief Operating Officer (COO), informed the Administrative Board that he wishes to leave PUMA for personal reasons, effective 31 July 2014. During his time at PUMA, Andy Koehler laid the strategic groundwork to accelerate the transformation process in his area of responsibility. PUMA is thankful for his contributions and wishes him all the best for his professional and personal future. He will be available to the Kering Group as a consultant.

Lars Radoor Soerensen has been appointed Chief Operating Officer (COO) of PUMA SE as of 1 August 2014. Lars joined PUMA in November 2013 and has led the areas of Business Processes and Intelligence as well as Information Technology. Prior to joining PUMA, Lars was previously the Chief Operating Officer at Bestseller and Esprit and before that he held leadership roles at Adidas and Lego. PUMA is confident that Lars is the right person to lead its operations and looks forward to having him as its new COO.

NEGATIVE IMPACT OF VOLATILE CURRENCIES CONTINUES

2014 Third Quarter Facts

• Currency adjusted sales increase by 6.4% to € 843 million
• Footwear sales return to growth
• OPEX increase due to Forever Faster marketing campaign
• EBIT of € 46 million
• Net Earnings of € 29 million
• Strategic equity investment made in Borussia Dortmund

2014 Nine Month Facts

• Currency adjusted sales increase by 2.4% to € 2.22 billion
• Slight gross profit margin decline to 47.2%
• OPEX increased by 3.7%
• EBIT of € 117 million
• EPS amounts to € 4.59
• Successful launch of worldwide Forever Faster brand campaign

Bjørn Gulden, Chief Executive Officer of PUMA SE: “In a good third quarter, PUMA achieved sales that were slightly better than expected. Footwear sales were up for the first time in seven quarters, and operating profits met our expectations. The launch of the Forever Faster marketing campaign was well received by both consumers and retailers. We told our consumers that PUMA is back and showed our retail partners that we deliver on our promises by investing in media campaigns. We feel that things are moving in the right direction, but as we have said all along: We know that the repositioning of PUMA and the turnaround of the business will take time as we need to continue to build confidence in the marketplace. I am convinced that our efforts have already translated into better products, better marketing and more efficient operations. In addition, we have now defined the key priorities which will mark the start of our IT infrastructure upgrade, laying the foundations for a fast, lean and efficient company in the future.”

Third Quarter 2014

Sales increase

PUMA’s 2014 third quarter sales performance was positive, as consolidated sales rose by 6.4% currency adjusted to € 843 million. This represents an increase of 3.7% in Euro terms, as continuing currency effects from various countries had a negative impact on sales.

Sales performance stronger in all regions and markets in Q3

Sales in the EMEA region increased by 4.4% currency adjusted to € 388 million. Performance improved in Western Europe, notably in Germany, where the new Borussia Dortmund jerseys were well received, as well as Switzerland and France, as sales of Teamsport and Lifestyle products rose.

Sales increased by 6.3% currency adjusted to € 265 million in the Americas, as North America continued to benefit from improved wholesale business, including key account initiatives like the PUMA Labs at Foot Locker. Sales in Latin America also rose, supported by a strong Teamsport business within the region.

Asia/Pacific sales increased by 10.7% currency adjusted to € 191 million due to growth in all key markets, including India, China, Korea and Japan. This growth was supported by the successful start of the Forever Faster brand campaign, the positive reception of PUMA’s new Arsenal jerseys and a strong Accessories business.

All product segments positive

Third quarter Footwear sales rose by 2.0% currency adjusted to € 374 million as Teamsport sales, particularly the PUMA evoSPEED boot, continued to improve.

PUMA’s third quarter Apparel sales rose by 11.4% currency adjusted to € 323 million, supported by strong demand for our Teamsport products, especially Arsenal jerseys and kit.

Accessories sales also improved by 7.5% currency adjusted to € 147 million due to continued demand for socks and bodywear. However, Golf equipment sales declined in the quarter as the golfing environment remained very weak.

Gross profit margin lower

PUMA’s gross profit margin declined from 47.1% to 46.3% for the third quarter of 2014 on the back of adverse currency impacts as well as shifts within the product mix which influenced the margin negatively. In addition, stronger sales in our distribution business within Latin America, particularly in Footwear, led to a decline in the Footwear margin from 44.4% to 41.9%. Apparel margin decreased slightly from 49.9% to 49.6%. However, the margin for Accessories improved from 48.6% to 50.3%.

OPEX increased

PUMA’s operating expenditures increased as expected in the third quarter, from € 309 million to € 349 million, due to the higher marketing expenditures associated with the Arsenal partnership and the launch of the Forever Faster brand campaign ahead of the back-to-school season.

Operating Result (EBIT) decreased

The decline in PUMA’s operating result (EBIT) from € 80 million to € 46 million in the third quarter of 2014 is mainly due to significantly higher marketing expenditures within the OPEX.

Financial Result

The financial result improved from € -1.5 million to € -0.7 million in the third quarter. The result remained negative due mainly to currency conversion impacts.

Net earnings

PUMA’s consolidated net earnings declined from € 53 million to € 29 million. As a result, earnings per share decreased from € 3.53 to € 1.93 in the third quarter of the year.

Nine Months 2014

Currency adjusted sales rose by 2.4% for the first nine months of the year to € 2.2 billion. As currency volatility continued to have a negative impact in the third quarter, albeit to a lesser extent, nine month sales in Euro terms declined by 2.9%.<7p>

Regional performances positive

Currency adjusted sales in the EMEA region rose by 1.4% to € 981 million, thanks to improvements in the United Kingdom and throughout Eastern Europe, the Middle East and Africa.

Sales in the Americas increased by 3.5% currency adjusted to € 751 million, with sales growth evenly spread over North America and Latin America.

Asia/Pacific sales rose by 2.5% currency adjusted to € 490 million, with positive performances throughout the region except in Japan, where the business climate in the first half of the year prevented a better result.

Apparel and Accessories sales increased

In terms of product segments, Footwear sales declined by 4.4% currency adjusted to € 972 million in the first nine months of 2014. Sales in Apparel increased by 9.1% currency adjusted to € 810 million, and Accessories sales also rose by 6.9% currency adjusted to € 439 million.

PUMA’s Retail sales rose

PUMA’s own and operated retail sales for the first nine months of the year increased by 3.4% currency adjusted to € 432 million, equal to 19.5% of total sales, as comparable sales in our stores improved during the period.

Gross Profit Margin down slightly

PUMA’s nine month gross profit margin declined slightly to 47.2% due to negative impacts from currency/hedging. The decline in the Footwear gross profit margin from 44.9% to 42.9% was almost offset by increases in the Apparel margin, from 49.6% to 50.4%, and in the Accessories margin, from 50.2% to 50.7%.

OPEX increase for the first nine months of the year

PUMA’s operating expenditure increased due to increased marketing costs associated with the launch of the Forever Faster brand campaign and the Arsenal partnership. However, tight control was maintained on all other areas of expenditure. OPEX rose by 3.7% from € 911 million to € 944 million compared to the same period last year.

Operating Result (EBIT) lower

Continued currency weakness in a number of countries had a negative impact on sales and gross profit. In addition, marketing spending increased due to our Forever Faster Campaign and new assets like Arsenal. As a result, PUMA’s EBIT declined as expected from € 190 million to € 117 million for the first nine months of the year, equivalent to 5.3% of sales.

Improved Financial Result

PUMA’s financial result improved from € -9.5 million to € -5.2 million. The negative result was caused mainly by the impact of foreign currency fluctuations.

Net Earnings / Earnings per share decline

Consolidated net earnings fell from € 121 million to € 69 million for the first nine months of 2014, with earnings per share declining from € 8.07 to € 4.59.

Net Assets and Financial Position

Focus on Working Capital continues

PUMA retained its focus on working capital management in the third quarter. As a result, Inventories were broadly flat at € 573 million and trade receivables increased by 4.6% to € 547 million, in line with the sales growth.

Cashflow / Capex

PUMA’s Free Cashflow (before acquisitions) moved from € -75 million to € -91 million for the first nine months of 2014, due to lower Earnings but supported by a much improved working capital position.

Capital expenditure rose from € 34 million to € 48 million as PUMA continued to invest in the opening and refurbishment of selected retail stores, as well as office and IT equipment.

Net Cash Position

PUMA’s Net Cash Position at the end of September 2014 declined slightly from € 246 million to € 231 million, also impacted by the payment for a 5.0% equity stake in Borussia Dortmund.

Brand Update

In September, PUMA participated in the capital increase of its strategic partner Borussia Dortmund GmbH & Co. KGaA (BVB) by acquiring 4,600,000 shares of the club, representing 5.0% of the voting rights. As Borussia Dortmund’s technical supplier since July 2012, we look forward to continuing our successful partnership with BVB as its close partner and shareholder. As one of the top clubs in Germany and Europe, Borussia Dortmund is a perfect fit for PUMA, increasing our brand awareness on a national and international level.

In addition to Borussia Dortmund, PUMA also added top English Premier League club Arsenal FC to its list of Teamsport partners at the start of the quarter. Our sales of replica jerseys, fanwear and associated accessories have been very satisfying since the new kits were launched in July.

In Motorsports, the PUMA partnered Mercedes AMG Petronas F1 team showed that they are truly Forever Faster, sealing the 2014 Constructor’s Championship with 3 races to go and thereby confirming their status as the fastest team in the world’s fastest sport. It has been a superb season for the team, with Lewis Hamilton and Nico Rosberg dominating the sport. PUMA has also extended its partnership with BMW Motorsport as the Official Supplier of Team and Racewear for all BMW Motorsport racing operations. With a relationship dating back to 2004 when PUMA first partnered the BMW Williams Formula One team, BMW Motorsport is PUMA’s longest standing partner in Motorsport and remains a core part of our Sports Marketing portfolio.

Strategy Update

Our strategy encompasses the repositioning of PUMA as the World’s Fastest Sports Brand, the improvement of our product engine, the optimization of our distribution quality and increasing the speed within our organization and infrastructure. In the third quarter we continued to progress well on all our key strategic priorities that are crucial to ensuring that 2014 marks the start of the turnaround.

In terms of our brand repositioning, August saw the launch of the biggest marketing campaign in PUMA’s history, which marked the start of our repositioning as a true Sports Brand to our consumers and retail partners. The objective of the campaign was to demonstrate that PUMA is back in sports and that our brand has great assets and a distinctive attitude: Brave, confident, determined, and joyful. We achieved this objective as our campaign reached our consumers in 35 countries, generating 1 billion TV impressions in our target group as well as 31 million online views. The market surveys showed a very positive consumer reception. The launch of this campaign marks the start of a long-term marketing strategy, with continuous investment up to the Rio de Janeiro Olympic Games in 2016 and beyond.

To improve our product engine, we initiated key projects to improve our product designs, develop more innovative technologies and increase the commerciality of our product range. The first results have already been implemented for the coming Spring/Summer 2015 season, and the feedback from our retail partners make us very confident that we are heading in the right direction. With the continued positive feedback received for our Autumn/Winter 2015 collection, we are positive that we are on the right path.

In order to improve the quality of our revenues and distribution, we have developed joint product and marketing programs with our key retailers to showcase our brand in the right retail environment and push sell-through with our partners. Our most prominent example is currently the PUMA Lab at Foot Locker, which we launched in Feb 2014 and has developed very positively as we have expanded our presence in the US throughout the year. The success of the PUMA Lab has not only improved our business with Foot Locker but also generated a positive spill-over effect on to other key retailers in the US marketplace – both with performance and lifestyle accounts. In 2015, we will continue to foster our collaborations and will launch further product and marketing programs with our most important key accounts in every Region.

We have also continued to optimize our organizational structure and setup by making it faster. With the finalization of the relocation of our Global and European Retail Organization from Oensingen, Switzerland, to our Headquarters in Herzogenaurach as of September 30th, we finalized the last out of our three major consolidation projects in 2014. This relocation followed the closure of our PUMA Village Development Center in Vietnam as of May 2nd and the relocation of our Lifestyle Business Unit from London to our Headquarters in Herzogenaurach as of May 31st.

Going forward, our strategic priorities will be complemented with a further objective: the upgrade of our current IT infrastructure to match the industry’s best practice benchmark. The process and system due diligence of our new COO revealed significant improvement potential in our IT and process landscape and we have now defined the key priorities which will mark the start of our IT infrastructure upgrade. We are very confident that our investment in these areas will lay the foundations for a lean and efficient company in the future.

Outlook for the Financial Year 2014

2014 continues to be a turnaround year for PUMA, where the brand will be re-established in the market place and brought back to a path of profitable and sustainable growth in the mid-term. To support this turnaround, PUMA will continue to invest strongly in marketing and sports assets as well as start investing in IT infrastructure, while maintaining tight control on other operating expenditures.

Given PUMA’s results through the first nine months of the year, we now expect a low single digit increase in currency adjusted net sales (previously flat) and a stable gross profit margin (previously slight increase) for the full year. As planned, OPEX will increase significantly based on increased Marketing investments throughout the second half of the year. PUMA’s full year guidance for EBIT and Net Earnings (approx. 5% and 3% of net sales respectively) remains unchanged; we reiterate that the continued volatile currency movements will have a negative impact of around 50 basis points on the EBIT and Net Earnings margin for the year.

Notes to the editors:

• This press release and financial reports are posted on about.puma.com.
• PUMA SE stock symbol:
  Reuters: PUMG.DE, Bloomberg: PUM GY,
  Börse Frankfurt: ISIN: DE0006969603– WKN: 6969603

Notes relating to forward-looking statements:

This document contains forward-looking information about the Company’s financial status and strategic initiatives. Such information is subject to a certain level of risk and uncertainty that could cause the Company's actual results to differ significantly from the information discussed in this document. The forward-looking information is based on the current expectations and prognosis of the management team. Therefore, this document is further subject to the risk that such expectations or prognosis, or the premise of such underlying expectations or prognosis, become erroneous. Circumstances that could alter the Company's actual results and procure such results to differ significantly from those contained in forward-looking statements made by or on behalf of the Company include, but are not limited to those discussed be above.

NEW STRATEGIC DIRECTION “FOREVER FASTER” SUCCESSFULLY LAUNCHED

2014 Fourth Quarter Facts

• Consolidated sales grow to € 751 million, a currency adjusted increase of 6.3%
• Positive trend in Footwear continues in Q4, up 4.3% currency adjusted
• Improvement of gross profit margin from 43.2% to 45.0%
• OPEX increase mainly due to “Forever Faster” marketing campaign
• EBIT before special items improves to € 11 million compared to € 1 million in Q4 2013
• Strong rise of net earnings due to special items booked in Q4 prior year
• Rihanna announced as new PUMA Brand Ambassador

2014 Full Year Facts

• PUMA’s full-year consolidated net sales increase by 3.3% currency adjusted to around
  € 3 billion
• Slight improvement of gross profit margin to 46.6% despite adverse currency fluctuations
• OPEX rise as planned due to “Forever Faster” marketing campaign as well as new sponsoring contracts
• EBIT reaches € 128 million
• Net earnings (2014: € 64.1 million; PY: € 5.3 million) and EPS (2014: € 4.29; PY:
  € 0.36) improved strongly; no special items booked in 2014

Bjørn Gulden, Chief Executive Officer of PUMA SE: “The fourth quarter developed as we had hoped, with a solid increase in sales and even stronger improvement in EBIT and net earnings. We are especially pleased to see that we again, for the second quarter in a row, had growth in our footwear sales. Our full-year results are also in line with expectations. We stopped the decline in sales and made progress with all our strategic priorities. We now have a clear positioning, which will be strengthened through increased investment into marketing and a clear use and celebration of our assets. We are further focusing on communicating stories clearly. We have made strides in improving our product and are working with our retailers to further improve the quality of our distribution. Additionally, we have started to improve our IT foundation and operations, to ensure a faster, leaner, and more efficient set up in the coming years. In 2015, we will continue to work towards our mission of becoming the Fastest Sports Brand in the world while further improving our business along all strategic priorities. The addition of Rihanna, as a Brand Ambassador and as one of our creative directors, is a commitment to our increased focus on the female consumer segment, as we truly believe that the "future is female". We know that the turnaround will take time but feel that 2014 was a turning point. We expect 2015 to confirm that we are moving in the right direction.”

FOURTH QUARTER 2014

Strong fourth quarter performance

In comparison with last year, consolidated sales in the fourth quarter of 2014 recovered and rose from € 698.3 million to € 750.8 million, which represents a currency adjusted increase of 6.3%. This was driven mainly by a stronger demand in the Americas as well as a considerable upwards trend in Accessories and further recovery in footwear sales.

In the EMEA region, sales increased slightly by 0.6% currency adjusted to € 224.8 million, as economic conditions in some continental European countries remained challenging, while the UK enjoyed a very solid performance.

Revenues in the Americas region increased strongly by 15.0% currency adjusted to € 319.3 million. Solid performances in the USA and Canada and strong growth rates in Argentina, Brazil and Mexico drove this performance.

Sales in the Asia/Pacific region rose slightly by 0.7% currency adjusted to € 206.7 million. While China and India grew, Korea and Japan performed below last year’s levels.

PUMA’s Footwear sales in the fourth quarter improved, up for the second quarter in a row, by 4.3% currency adjusted to € 310.7 million. Apparel sales improved by 3.6% currency adjusted to € 293.0 million, while Accessories saw its sales increase sharply, up 17.1% currency adjusted to € 147.1 million despite adverse market developments in the Golf category.

PUMA’s gross profit margin increased from 43.2% to 45.0% in the fourth quarter of 2014. Lower price reductions supported by a better product mix in the quarter helped to improve the margin in Footwear and Apparel. Footwear gross profit margin increased from 39.5% to 41.6%. Apparel margin rose from 44.7% to 47.1%, while the margin for Accessories decreased slightly from 48.4% to 47.8% impacted by the current weakness within the Golf business.

After four consecutive quarters of decline, operating expenditures in the fourth quarter of 2014 increased as a result of the intensified marketing activities of PUMA. As a consequence – although PUMA maintained its focus on a strict cost management - total OPEX rose by 8.6% from € 306.2 million to € 332.4 million during the quarter. Combined with the increase in sales and the improved gross profit margin, this led to the higher EBIT (before special items) of € 10.6 million. As no special items were recorded in the fourth quarter of 2014 (prior year: € 129.0 million), the Operating Result (EBIT) increased significantly. Earnings per share in the fourth quarter of 2014 came in at € -0.30.

FULL YEAR 2014

PUMA’s full-year sales increased 3.3% currency adjusted

Consolidated sales were in line with the guidance for 2014 and increased by 3.3% currency adjusted to around € 3.0 billion, which corresponds to a slight decline of 0.4% in Euro terms, reflecting the currencies headwind registered throughout the year. All regions contributed to growth, posting currency adjusted growth rates in the year.

Sales in the EMEA region increased by 1.3% currency adjusted to € 1.2 billion, where strong performance in the United Kingdom more than offset weaker French and Italian markets.

In the Americas, sales improved significantly by 6.7% currency adjusted to € 1.1 billion thanks to a strong demand particularly from the U.S., Canada, Argentina and Mexico.

In Asia/Pacific, sales rose by 1.9% currency adjusted to € 696 million, as a strong demand from India and China outbalanced a decline in Japan, which was mostly related to the weaker Golf category.

In 2014, Footwear sales decreased due to a weaker first half by 2.4% currency adjusted to € 1.3 billion, while the second half showed growth in the segment. Sales in Apparel rose by 7.6% currency adjusted to € 1.1 billion. Sales in Accessories continued to improve and showed a significant increase of 9.3% currency adjusted to € 586 million.

Sales growth continued in PUMA’s Retail Business

In line with PUMA’s strategy, PUMA continued to optimize its retail network in 2014. While the company continued to open stores with a particular focus on profitable new locations in growth markets, it carried on its program of selective closures of unprofitable stores at the same time. As such, comparable store sales were positive in the year and full-year retail sales rose by 3.9% currency adjusted to € 618 million in 2014, equaling 20.8% of total sales.

Slightly improved Gross Profit Margin

PUMA’s full-year gross profit margin increased slightly from 46.5% to 46.6%, driven by positive margin developments in Apparel and Accessories that were able to more than offset the decline in Footwear. Footwear margin for the full-year stood at 42.6% versus 43.7% in the previous year. Margin in Apparel increased significantly from 48.3% to 49.5%. Accessories gross profit margin also increased from 49.8% to 50.0%.

Marketing efforts drive OPEX

Due to the increased marketing expenses for the „Forever Faster“ brand campaign, the football world cup in Brazil as well as the sponsoring of additional football clubs and athletes, the full-year OPEX increased by 4.9% from € 1,216.9 million to € 1,276.8 million. At the same time, savings were realized in other areas in line with the ongoing strict cost management.

Operating Result (EBIT) before special items in line with guidance

As a consequence of the effects outlined above, full-year EBIT before special items declined from € 191.4 million to € 128.0 million. This corresponds to a 4.3% margin on net sales.

No Special Items in 2014

PUMA’s 2014 results were not affected by any special items, while in the previous year, PUMA recorded € 129.0 million.

Operating Result (EBIT) after special items increased

As a result, PUMA’s EBIT after special items for the full year improved from € 62.5 million to € 128.0 million, equivalent to an increase from 2.1% to 4.3% as a percentage of sales.

Financial Result improved

For the full year, PUMA’s financial result improved from € -8.7 million to € -6.2 million.

Net Earnings / Earnings per share increase

Full-year consolidated net earnings rose from € 5.3 million in 2013 to € 64.1 million in 2014, with earnings per share increasing from € 0.36 to € 4.29.Sales growth continued in PUMA’s Retail BusinessSales growth continued in PUMA’s Retail Business

NET ASSETS AND FINANCIAL POSITION

Working Capital position continues to improve

The Group’s significantly declined by 13.8% from € 528.4 million to € 455.7 million.Inventories increased from € 521.3 million to € 571.5 million at the end of 2014, while trade receivables rose from € 423.4 million to € 449.2 million. As per the balance-sheet date, trade liabilities increased from € 373.1 million to € 515.2 million as a result of higher inventories and because of timing of payments.

Cashflow / Capex

PUMA’s Free Cashflow improved from € 29.2 million at the end of 2013 to € 39.3 million at the end of 2014. This was mainly due to lower Working Capital requirements and was achieved despite an increase in CAPEX.

Cash Position improved

PUMA’s year end Cash Position improved to € 401.5 million compared to last year’s € 390.1 million.

Dividend

The Administrative Board will propose a stable dividend of € 0.50 per share for the financial year 2014 at the Annual General Meeting on 6th May 2015.

STRATEGY UPDATE

To be the Fastest Sports Brand in the world

In 2013, Bjørn Gulden (CEO) introduced PUMA’s new mission statement: To be the Fastest Sports Brand in the world. The company’s mission not only reflects PUMA’s new brand positioning of being Forever Faster, it also serves as the guiding principle for the company expressed through all of its actions and decisions. Our objective is to be fast in reacting to new trends, fast in bringing new innovations to the market, fast in decision-making and fast in solving problems for our partners.

Strategic priorities

Our strategy encompasses five strategic priorities: the repositioning of PUMA as the World’s Fastest Sports Brand, the improvement of our product engine, the optimization of our distribution quality, increasing the speed within our organization and infrastructure, and renewing our IT infrastructure. In 2014, we continued to make further progress on all our key strategic priorities to ensure that the year marks the start of a turnaround.

In terms of our brand repositioning, August 2014 saw the successful launch of our worldwide Forever Faster brand campaign – the biggest marketing campaign in PUMA’s history. This marked the start of our repositioning as a true sports brand to our consumers and retail partners. The objective of the campaign is to demonstrate that PUMA is back in sports and that our brand has great assets and a distinctive attitude: Brave, confident, determined, and joyful. We achieved this goal by focusing our campaign on customers in 35 countries. In the first three months after the start, our advertising generated 1 billion TV impressions in our target group as well as 31 million online views. The market surveys showed a very positive consumer reception. The launch of this campaign marked the start of a long-term marketing strategy, which will be continued in 2015 and run through the Rio de Janeiro Olympic Games in 2016 and beyond.

To improve our product engine, we initiated key projects to enhance our product designs, develop more innovative technologies and increase the commercial appeal of our product range. The first results have already been implemented for the 2015 collections, and the feedback from our retail partners make us very confident that we are heading in the right direction.

In order to improve the quality of our revenues and distribution, we have developed joint product and marketing programs with our key retailers to showcase our brand in the right retail environment and drive sell-through with our partners. In February 2014, together with our partner Foot Locker USA, we introduced the jointly developed retail concept "PUMA Lab" and successfully rolled it out in the US market. The success of the PUMA Lab has not only improved our business with Foot Locker USA but also generated a positive spill-over effect onto other key retailers in the US marketplace – both with performance and lifestyle accounts. In 2015, we will continue to foster collaborations and launch further product and marketing programs with our most important key accounts in every region.

In 2014, we also continued to optimize our organizational structure and setup by making them leaner and faster. With the finalization of the relocation of our Global and European Retail Organization from Oensingen, Switzerland, to our Headquarters in Herzogenaurach as of September 30th, we completed the last out of our three major consolidation projects in 2014. This relocation followed the closure of our PUMA Village Development Center in Vietnam in May and the relocation of our Lifestyle Business Unit from London to our Headquarters in Herzogenaurach in June. In 2015, we will be focusing on standardizing and optimizing processes between PUMA and its partners. The key projects in this area are the implementation of a sourcing organization to manage global order and invoice flows and the conceptual design of a European trading company to optimize regional flows of goods.

Another strategic priority is the renewal and expansion of our IT infrastructure to create a basis for more extensive optimization measures. In 2015, we will focus on three areas: optimize our basic IT infrastructure, start the implementation of a standard ERP system to support sourcing and trading functions, and set-up platforms to improve the design, development and planning processes. We are very confident that our investments in these areas will lay the foundation for a lean and efficient company in the future.

BRAND AND MARKETING UPDATE

At the end of 2014, we added global cultural icon Rihanna to our roster. Through this new multi-year partnership, Rihanna will serve as a global brand ambassador. She will play a key role in PUMA’s brand campaign Forever Faster, featuring along PUMA’s world-class athletes such as Usain Bolt and Sergio Aguero. From Spring/ Summer 2016 on, she will serve as one of the Creative Directors for PUMA, specially focusing on Women. Rihanna will directly influence our Women’s collections with her fresh, forward thinking and non-traditional approach to sports, fitness and lifestyle. This marks the start of a renewed focus on Women for the PUMA brand. In 2015, we will further underscore our increased focus on female consumers by launching an extended training range, starting with the Pulse XT, which will be endorsed by Rihanna.

Our Autumn/Winter 2014 collection in Lifestyle saw a star reborn, when we reissued the Becker OG, the classic mid top shoe that 17-year old Boris Becker wore during his famous and groundbreaking Wimbledon win in 1985. A timeless silhouette originally made for the tennis court, the Becker OG merges the best of PUMA’s performance heritage and design language.

In Motorsports, Lewis Hamilton of the PUMA-partnered Mercedes AMG Petronas F1 team clinched his second drivers' World Championship ahead of his teammate Nico Rosberg in the season-ending Abu Dhabi Grand Prix. Hamilton wore the PUMA F1 Pro SLW, weighing only 99 grams. It is the lightest Formula 1 shoe that currently exists.

The year 2015 has started very positively for PUMA as the 2015 Africa Cup of Nations proved to be a fantastic stage for our football products with Ivory Coast beating Ghana 9:8 in a thrilling penalty shootout, with both teams being outfitted by PUMA. Led by their captain and PUMA star player Yaya Touré, the “Elephants” put on a brilliant performance to claim their second Africa Cup of Nations title after 1992. On the pitch in Equatorial Guinea, Touré sported the next generation of our evoPOWER football boot, designed to bring Power and Accuracy to a higher level. The innovative shoe was launched at the beginning of this year through a “Head to Head” campaign featuring PUMA key assets Mario Balotelli and Cesc Fàbregas.

In February 2015, a further innovation was launched in our running category. Our most innovative running footwear technology to date, introduced by the World’s Fastest Man, Usain Bolt on New York City’s Times Square: IGNITE. Developed together with BASF over multiple years, IGNITE is revolutionary to the business. PUMA’s best ever, PU foam provides the highest return of energy we have ever created, step-in comfort and long-lasting durability with ForEverFoam. In subsequent seasons, additional styles will be introduced and the IGNITE line will be expanded further within our Running and Training category. In the second half of 2015, we will continue our training and Ignite story with IGNITE XT trainer.

OUTLOOK FOR THE FINANCIAL YEAR 2015

After the successful launch of PUMA’s Forever Faster campaign in autumn 2014, PUMA will continue its marketing investments in order to reposition PUMA as the fastest sports brand of the world. The objective of PUMA’s brand repositioning is to increase brand heat and further replace lower tier distribution with higher tier distribution in order to improve sales quality and sell-through.

Together with improvements in the product offering, PUMA expects an increase of its currency-adjusted net sales in the medium single-digit range for the full year 2015, with sales in the first half expected to be flat and growth occurring in the second half. The gross profit margin is anticipated to improve slightly based on lower discounts and a favorable product mix.

For 2015, PUMA is planning further strong investments in the “Forever Faster” marketing campaign as well as in the upgrade of our current IT. We are very confident that our investment in IT will lay the foundation for a lean and efficient company in the future. As a consequence, PUMA’s OPEX will increase while management will continue to put a strong emphasis on strict control of other operating costs.

The recent adverse developments of foreign exchange rates, particularly the strengthening of the US-Dollar versus nearly all other currencies, could lead to a significant negative impact on the reported gross profit margin and the overall reported EBIT and net earnings of the PUMA group.

Because of these negative currency developments, PUMA has already taken and will continue to take countermeasures, which should support a slight increase in reported EBIT and net earnings.

Last year, PUMA has successfully taken the first steps to re-establish the brand in the market place. 2015 will be the year to further enhance and reinforce this brand positioning and to take a further step in getting PUMA back to a path of profitable and sustainable growth.

NOTES

Media Relations:

Kerstin Neuber - Corporate Communications - PUMA SE - +49 9132 81 2984 - kerstin.neuber@puma.com

Investor Relations

Beate Gabriel – Finance - PUMA SE - +49 9132 81 2375 – beate.gabriel@puma.com

Notes to the editors

This press release and financial reports are posted on about.puma.com.
PUMA SE stock symbol: Reuters: PUMG.DE, Bloomberg: PUM GY, Börse Frankfurt: ISIN: DE0006969603– WKN: 6969603

Notes relating to forward-looking statements

This document contains forward-looking information about the Company’s financial status and strategic initiatives. Such information is subject to a certain level of risk and uncertainty that could cause the Company's actual results to differ significantly from the information discussed in this document. The forward-looking information is based on the current expectations and prognosis of the management team. Therefore, this document is further subject to the risk that such expectations or prognosis, or the premise of such underlying expectations or prognosis, become erroneous. Circumstances that could alter the Company's actual results and procure such results to differ significantly from those contained in forward-looking statements made by or on behalf of the Company include, but are not limited to those discussed be above.

The previous guidance for 2015 (increase in the medium single-digit range for full-year currency-adjusted net sales, slight increase of the gross profit margin, slight increase of the operating result (EBIT) and of the net earnings compared to 2014) is therefore amended.

From today’s perspective, we continue to expect an increase in the medium single-digit range for full-year currency-adjusted net sales. However, due to the negative currency effects we expect a drop in the gross profit margin for the full year in a range of 100 to 150 basis points versus last year (2014: 46.6%). The operating result (EBIT) for the full year is expected in a range between 80 million and 100 million EUR. The net earnings guidance is amended according to the adjustment of the guidance for the operating result (EBIT).

CURRENCY EFFECTS WEIGH ON REPORTED MARGINS

2015 First Quarter Facts

• Sales up by 4.4% currency-adjusted (+13.2% reported) to € 821 million, growth across all regions and mainly driven by Footwear
• Gross profit margin down, solely due to foreign currency impacts  OPEX increase because of marketing expenses, investments in IT, opening of new retail stores, also strongly impacted by unfavorable currency rates
• EBIT stands at € 38 million
• PUMA IGNITE running shoe technology successfully launched in February
• Outlook adjusted to reflect currency impact

Bjørn Gulden, Chief Executive Officer of PUMA SE: “PUMA´s first quarter sales grew slightly stronger than expected. This was mainly caused by a very positive development in footwear. We are working very hard to improve our product offer, and although we know we have some ways to go, we feel that this growth in footwear confirms that we are on the right path.

The negative development in currencies, had a significant negative impact on our gross profit margin and operational expenses and therefore also on our EBIT and net earnings. We do work hard to „counter“ these negative currency effects, but do currently not have enough leverage to fully neutralize the impact and have therefore adjusted our outlook for the full year EBIT and net earnings.

We will continue our strategy to become the Fastest Sports Brand in the World and will continue to invest in Product, Marketing, Retail and IT to lay the foundation for solid profitable growth in the future.”

Sales growth in the first quarter

PUMA’s first quarter sales performance in 2015 was slightly ahead of our expectations. Currency-adjusted sales increased by 4.4% to € 821 million. In reported terms, this corresponds to a growth of 13.2%.

Positive sales development in all regions

Sales in the EMEA region rose by 0.2% currency-adjusted to € 342 million. Southern European countries developed positively in the first quarter, while the United Kingdom saw a decline due to a softer Lifestyle business. The Middle East and Africa regions continued to show a solid performance in most of the countries and across all categories.

In the Americas region, sales grew by 5.6% currency-adjusted to € 289 million, with both North America and Latin America developing positively.

Asia/Pacific sales increased by 10.9% currency-adjusted to € 191 million with strong performance in China and India supported by the improved Footwear business.

Footwear leads segment performance in the first quarter

Footwear sales increased by 7.8% currency-adjusted to € 378 million. This was driven by a higher demand for PUMA’s Running, Training & Fitness products, which was partly triggered by the successful launch of the PUMA IGNITE running shoe in mid-February.

Apparel sales increased by 5.7% currency-adjusted to € 280 million. A strong demand for PUMA’s Fundamentals, Running, Training & Fitness and Golf products underpinned this good performance.

Accessories sales decreased by 4.6% currency-adjusted to € 163 million. This is related to lower sales of socks and bodywear in the North American market.

Satisfying retail performance

PUMA’s first quarter Retail sales increased by 7.3% on a currency-adjusted basis to € 144 million, with comparable sales in full-price stores and outlets slightly up. PUMA also operated a higher number of stores. Retail sales represented 17.5% of total sales compared to 17.1% last year.

Negative currency impacts affect gross profit margin

PUMA’s gross profit margin declined from 48.5% to 46.9% in the first quarter, solely due to negative currency impacts. The strength of the US Dollar compared to major “unhedged” and not fully hedged currencies including Russian Ruble, Mexican Peso, Brazilian Real, Turkish Lira and Argentinian Peso led to this decrease. The Footwear gross profit margin declined from 44.1% to 42.9%.  Apparel decreased from 53.6% to 50.7%, and Accessories remained at previous year’s level of 49.6% (Q1 2014: 49.7%). In absolute figures, gross profit increased by 9.3% in reported terms from € 352 million to € 385 million.

Higher OPEX in line with expectations

As communicated previously, PUMA continued to invest in the “Forever Faster” marketing campaign in the first quarter 2015. There was no major campaign in the first quarter in 2014. In addition, we have started to invest in our IT infrastructure and we continued with our retail strategy to open additional retail stores, mainly in emerging markets. As with the gross profit margin, OPEX was heavily impacted by the unfavorable currency developments. As a consequence, PUMA’s OPEX increased by 17.7% to € 351 million. PUMA’s management continues to put a strong emphasis on strict control of other operating costs. In constant currencies, the increase in OPEX amounts to 9.5%.

Operating result (EBIT) declines

Despite the sales growth in the first quarter 2015, the lower gross profit margin and increased operating expenditures both impacted by negative currency developments led to a decrease of PUMA’s operating result (EBIT) from € 59 million to € 38 million. The EBIT ratio decreased from 8.1% to 4.6%.

Financial result improves

The financial result improved from € -3.2 million to € 0.9 million in the first quarter. The result turned positive due to currency conversion impacts.

Net earnings decrease

PUMA’s consolidated net earnings declined by 30.3% from € 36 million to € 25 million. As a result, earnings per share decreased from € 2.38 to € 1.66 in the first quarter of the year.

Net Assets and Financial Position

Working capital rose in line with sales

Inventories increased by 23.7% (11.9% currency adjusted) to € 648 million due to earlier deliveries in order to better service our key strategic accounts. Trade receivables increased by 17.9% (6.2% currency adjusted) to € 596 million compared to 31 March 2014, which was driven by higher sales. Trade payables were similarly affected by currency exchange rates and increased by 36.7% to € 467 million. As a result, PUMA’s working capital rose by 10.6% from € 674 million to € 745 million at the end of March 2015.

Cashflow / Capex

The free cashflow before acquisitions declined to € -233 million mainly due to lower cashflows from operating activities as a result of the increased working capital.

Capex increased from € 12 million to € 16 million, which was mainly invested in the opening of selected retail stores as well as IT equipment.

Stable cash position

PUMA’s cash and cash equivalents position at € 295 million as of 31 March 2015 remained broadly stable at last year’s level of € 301 million.

Brand and Product Update

Following the launch of our latest running innovation PUMA IGNITE by the World’s Fastest Man Usain Bolt on New York City’s Times Square, the sell-through of this innovative footwear technology has been off to a good start both in retail and wholesale. The innovative IGNITE foam technology offers the highest energy return in the industry and strongly represents our new “Forever Faster” positioning.

In order to further strengthen our dominant position in Motorsport, we recently announced a new long-term Formula 1 partnership with INFINITI RED BULL RACING. Effective 1 January 2016, we will be the official, licensed supplier of team and race wear. In addition, we will exclusively produce and distribute INFINITI RED BULL RACING licensed replica, fanwear and lifestyle collections for global distribution. We will also prominently feature INFINITI RED BULL RACING in our brand and motorsport marketing campaigns in 2016 and beyond.

Our partnership with Red Bull will span beyond Formula 1 racing. We have also signed a new multi-year partnership with the “Wings for Life World Run”, which was co-founded by Red Bull founder Dietrich Mateschitz to fund scientific research for spinal cord injuries. This will serve as a platform to promote our IGNITE running and CELL apparel technology. As the exclusive official sportswear partner, event staff and athletes participating in the Wings for Life World Run sported PUMA footwear, apparel and accessories. 100% of all starting fees and donations will go directly to spinal cord research.

Our Teamsport category saw the extension of one of PUMA’s longest-standing and most successful partnerships in Football: through our new long-term contract with the Italian Football Federation (FIGC), PUMA has increased its marketing rights as well as retained the exclusive Master License to actively manage the entire global licensing portfolio of the Federation. PUMA, who first became partner of “Gli Azzurri” in 2003, will also continue as the official technical supplier to all associated FIGC teams.

In March, PUMA won the “2014 Marketing Leader Award” from Foot Locker Europe. The award has recognized PUMA’s “Forever Faster” marketing campaign, which was launched in Autumn/Winter 2014 and the growth of brand awareness through the effective use of advertising, public relations and event marketing. This underlines the impact of our “Forever Faster” campaign and the close collaboration with our retail partners.

Strategy Update

We have made further progress towards becoming the Fastest Sports Brand in the World. We have launched successful products for this year’s Spring Summer season, including our new IGNITE running technology. Over the coming seasons we will continue to develop the IGNITE platform with innovations, material updates and product launches supported by dedicated media activities.

We have said that we would enhance our product communication, telling better and simpler stories to the consumers and utilize our assets. This promise is reflected in our ongoing marketing campaign “Forever Faster”. The current theme is more product-focused and features Usain Bolt running in the IGNITE as well as star-footballers including Mario Balotelli and Cesc Fàbregas in action with our latest football boot innovation evoPOWER.

Our new multi-year partnership with Rihanna has already generated a lot of positive PR and social media buzz. Rihanna is an ideal brand ambassador, thanks to both her personality and iconic style. She is currently featured in an in-store marketing campaign promoting PUMA’s key training styles of the season. In August, Rihanna will also play a key role in the brand campaign Forever Faster, featured along PUMA’s world-class athletes such as Usain Bolt and Sergio Aguero. Later she will be the Creative Director for her own line of training & lifestyle products.

In terms of improving the quality of our distribution, our sales organizations are working hard to intensify our relationships with key strategic accounts as well as building new partnerships with strong retailers in both established and emerging markets. Amongst others we have continued our collaboration with Foot Locker and opened the first European PUMA Lab at the Foot Locker store in Milan in February. We have also added new locations to their US portfolio in Philadelphia and Atlanta.

As for PUMA’s own retail, we have developed a new instore concept which will ensure that our PUMA stores better tell our product stories, reveal the technologies behind them and strengthen PUMA’s positioning as a sports brand. Last month, we started the global roll-out with our PUMA store in Herzogenaurach. It will continue to be implemented in our stores world-wide, with the shops in Hong Kong and Mexico City being next in line. Continuing our efforts to improve and expand our online presence, we have expanded the selection of our eCommerce website to include our more exclusive PUMA Select products as of May.

We continue to work on simplifying our organizational structure and setup. In Indonesia we have transitioned from a distributor to a new subsidiary which will improve our presence in this important market. In terms of our IT enhancement, we continue to work on our focus areas including standardized ERP systems, overall IT infrastructure and also tools to enable more efficient design and planning processes. These investments are essential in order to achieve our vision of becoming the Fastest Sports Brand in the World. We will continue to drive our growth strategy forward with better, and faster collections, continued investments into our brand, our organization, our distribution and our IT infrastructure.

Outlook for the Financial Year 2015

In 2015, PUMA will continue its strong marketing investments to further enhance and reinforce our brand positioning, making a further step in getting PUMA back on a path of more profitable and sustainable growth.

After the positive sales development in the first quarter 2015, we continue to expect an increase in the medium single-digit range for full-year currency-adjusted net sales.

However, as already indicated in the outlook for 2015 at the beginning of this year, the continued adverse developments of foreign exchange rates during the recent months, particularly the strengthening of the US Dollar versus nearly all other currencies, had a significant negative impact on PUMA’s reported gross profit margin. PUMA has already taken and will continue to take countermeasures, but the impact will not fully offset the negative currency impact on the gross profit margin. As a consequence, we now foresee a drop in the gross profit margin for the full year in a range of 100 to 150 basis points versus last year (2014: 46.6%).

As announced at the beginning of this year, we will continue to invest strongly in marketing, in the upgrade of PUMA’s current IT infrastructure and the extension of our own retail store network. This will result in an increase in OPEX, that will be further exacerbated by negative currency impacts. At the same time, PUMA’s management will continue to put a strong emphasis on strict control of other operating costs.

As a consequence of the now expected drop in gross profit margin and adverse currency effects on OPEX, we now expect EBIT for the full year to come in at a range between € 80 million and € 100 million. Net earnings will be impacted accordingly.

Notes to the editors:

This press release and financial reports are posted on about.PUMA.com.
PUMA SE stock symbol:
Reuters: PUMG.DE, Bloomberg: PUM GY,
Börse Frankfurt: ISIN: DE0006969603– WKN: 6969603

 

Notes relating to forward-looking statements:

This document contains forward-looking information about the Company’s financial status and strategic initiatives. Such information is subject to a certain level of risk and uncertainty that could cause the Company's actual results to differ significantly from the information discussed in this document. The forward-looking information is based on the current expectations and prognosis of the management team. Therefore, this document is further subject to the risk that such expectations or prognosis, or the premise of such underlying expectations or prognosis, become erroneous. Circumstances that could alter the Company's actual results and procure such results to differ significantly from those contained in forward-looking statements made by or on behalf of the Company include, but are not limited to those discussed be above.

CURRENCY EFFECTS CONTINUE TO HAVE NEGATIVE IMPACT ON MARGINS

2015 Second Quarter Facts

• Currency adjusted sales up by 7.6% to € 772.7 million (+18.5% reported)
• Strong growth in Footwear driven by Running and Training categories
• Gross profit margin stable at 46.7% despite adverse currency effects
• OPEX increase based on additional marketing activity, IT investments and currency impacts
• Operating income (EBIT) comes in at € 6.8 million
• Tretorn trademark rights sold
• PUMA-sponsored national football team of Chile wins Copa América title for the first time

2015 Half Year Facts

• Currency adjusted sales grow across all regions by 5.9% to € 1,594.1 million, exceeding expectations
• Gross profit margin falls by 90 basis points to 46.8% due to currency effects
• OPEX rise by 19.1% to € 708.5 million due to higher marketing activities, retail expansion and IT investments as well as adverse currency impacts compared to last year
• Operating income (EBIT) amounts to € 44.3 million
• Earnings per share come in at € 1.44
• Innovative IGNITE running product platform shows good sell-through

Bjørn Gulden, Chief Executive Officer of PUMA SE: "We saw a continued positive development of our sales in Q2. This was again driven by a strong growth in Footwear. We have said that growth in footwear is key for us to turn the company around and feel that the investment in new and innovative products is starting to pay off. The negative effect of currencies is continuing to hurt our gross profit margin and increase our operational expenses, thus reducing our earnings. We are of course working to offset the impact of this by gradually increasing sales prices in markets that are hurt by the negative effects, and we are, when possible, moving some of the sourcing to the local markets. These measures are currently not enough to totally offset the loss in reported gross profit margin. Despite the pressure on margins, we have decided to continue our investments in marketing, IT, and in the modernizing of our retail network. We believe these investments are needed to regain the strength of the brand and to ensure long-term growth for the company. We have a vision of becoming the fastest sports brand in the world and know that we have to invest now to achieve our goal long term. Furthermore, we confirm our financial guidance from Q1.”

Second Quarter 2015

Currency adjusted sales exceed expectations

In the second quarter of 2015, PUMA’s consolidated sales improved by 7.6% currency adjusted to € 772.7 million and were above our expectations. This positive development was primarily driven by the growth in Footwear sales across all regions. In reported terms, consolidated sales rose a strong 18.5%.

Growth in all regions

Second-quarter sales for the EMEA region (Europe, Middle East and Africa) rose by 3.9% currency adjusted to € 270.5 million. The development was particularly encouraging in Germany, France and Turkey, while Italy and Switzerland suffered a decline on high comparables (last year’s World Cup replica sales not repeating this year).

Sales performance in the Americas was stronger in the second quarter with growth in both, North and Latin America. Currency adjusted sales increased by 11.6% to € 328.4 million. In particular, Argentina and Mexico showed above average sales developments.

Asia/Pacific (APAC) showed a satisfying second-quarter performance, with sales rising by 6.2% currency adjusted to € 173.8 million. The increase was primarily attributable to good performances in China and India, each reporting double-digit growth.

Footwear leads product segment performance

Sales in Footwear increased for the fourth quarter in a row, rising by 16.2% currency adjusted to € 358.8 million. This development was mainly driven by the Running, Training and Sportstyle categories and especially the PUMA IGNITE product platform.

Apparel sales were broadly flat at € 263.3 million. This is against high comparables in the second quarter 2014, when sales in replica jerseys driven by the FIFA World Cup were particularly strong.

Accessories grew by 3.6% currency adjusted to € 150.7 million and developed in line with our expectations.

Gross profit margin stable

Gross profit margin was stable at 46.7%, despite significant negative currency effects. The footwear gross profit margin decreased slightly from 42.7% to 42.3%, the apparel margin rose from 48.2% to 50.7% and the margin for accessories fell from 52.4% to 50.0%.

Higher OPEX in line with expectations

Operating expenditures (OPEX) - significantly impacted by adverse currency effects - saw an increase of 20.4% in reported terms, rising to € 357.4 million. During the quarter, we continued to invest heavily in marketing activities to strengthen PUMA’s positioning as the Fastest Sports Brand in the World. The main cause for the increase was higher media spend and the partnerships with global sports and pop culture icons Rihanna and Arsenal, which both commenced in the second half of 2014. The opening of new retail stores at selected locations and investing into the IT-infrastructure also contributed to the increase of OPEX in the second quarter. In constant currencies, the increase in OPEX amounts to 10.6% versus last year.

Operating income (EBIT)

The rise in operating expenses led to a decrease of operating income (EBIT) from € 12.6 million to € 6.8 million.

Financial result

In the second quarter, the financial result declined from € -1.3 million last year to € -5.7 million this year due to unfavorable impacts from currency conversion.

Net earnings

Net earnings came in at € -3.3 million in the second quarter, resulting in earnings per share of € -0.22.

First Half-Year 2015

In the first half-year 2015, consolidated sales increased by 5.9% currency adjusted to € 1,594.1 million and were above our expectations. In reported terms, the improvement is significantly higher with an increase of 15.7%.

All regions contribute to sales growth

In the EMEA region, sales rose by 1.8% currency adjusted to € 612.2 million. Germany, France, Spain and Turkey showed a positive development in Europe, while the Middle East and Africa regions continued their solid performance.

In the Americas, sales grew by 8.7% currency adjusted to € 617.4 million. Argentina and Mexico stood out within the Latin American region, driving double-digit growth, while North America was growing at a mid-single-digit pace with acceleration in the second quarter.

Asia/Pacific also developed well, with an increase of 8.6% currency adjusted to € 364.5 million. Performances in China and India were strong, while sales in Japan were stagnant and Korea declined in a difficult economic environment.

Footwear supported by IGNITE

In terms of product segments, Footwear was positively impacted by the successful launch of the PUMA IGNITE product platform, leading to an overall increase of 11.7% currency adjusted to € 736.9 million. The Running, Training, and Football categories were the main growth drivers. Apparel also grew with sales amounting to € 543.1 million (+2.7%), while Accessories decreased slightly to € 314.1 million (-0.9%).

PUMA’s retail sales grew

Supported by the increased number of stores operating (44 more stores compared to one year ago; 4 less than at the end of 2014), retail sales increased by 9.3% currency adjusted to € 322.2 million in the first half of 2015. This represented 20.2% of total sales compared to 19.6% last year.

Gross profit margin impacted by adverse currency effects

PUMA has already taken and will continue to take countermeasures to offset the negative currency impact on the gross profit margin. The effect of these measures helped us to limit the impact on the gross profit margin to 90 basis points for the first half-year, as the second quarter gross profit margin was stable. However, PUMA cannot currently fully neutralize the impact of volatile currencies, as prices can only be adjusted very carefully in order not to impact consumer demand. Furthermore, in some countries, the costs of hedging outweigh its financial benefits, or in some instances, currency hedging is not possible at all. In addition, we are considering to source products more in local markets in order to reduce the exposure to foreign currencies in these markets. PUMA’s gross profit margin for the first half-year went down by 90 basis points to 46.8%. The footwear gross profit margin decreased from 43.4% to 42.6%, apparel margin was largely stable at 50.7% and the margin for accessories decreased from 50.9% to 49.8%.

Continued higher OPEX due to heavy marketing activities

PUMA’s operating expenses (OPEX) increased by 19.1% to € 708.5 million, as negative currency effects continued to have an impact and the company continued its marketing activities. Opening up new stores and investing into IT-infrastructure also contributed to the rise in OPEX. At the same time, PUMAs management continued to put a strong emphasis on strict control of other operating costs. In constant currencies, the increase in OPEX amounts to 9.7% versus last year.

Operating result (EBIT)

Operating income was down by 37.7% to € 44.3 million in the first half 2015, impacted by the negative currency effects already described.

Financial result

The financial result was almost stable at € -4.8 million compared to € -4.5 million in the first half year of 2014.

Net earnings / earnings per share

Half-year consolidated net earnings came in at € 21.5 million, representing earnings per share of € 1.44 compared to € 2.66 in the prior year.

Net Assets and Financial Position

Increase in inventory and trade receivables broadly aligned with sales growth

To ensure product availability and support sales growth as well as a higher demand from new stores, inventories increased by 20.6% to € 704.5 million. This represents a currency adjusted increase of 13.4%. Trade receivables went up by 13.1% to € 523.8 million, broadly in line with reported sales growth. Trade payables were at € 557.9 million, rising 27.6% compared to last year´s figure. In total, working capital rose 7.3% to € 640.0 million.

Cashflow / Capex

As a consequence of the higher working capital requirement, the free cash flow before acquisitions was at € -167.8 million compared with € -69.7 million for the same period last year.

Cash and cash equivalents

PUMA´s cash and cash equivalents went up from € 300.0 million to € 337.9 million, while borrowings increased due to the higher working capital requirements as part of PUMA’s short term financing activities.

Tretorn

PUMA sold trademark rights of Tretorn

Continuing our focus on our core categories under the PUMA and COBRA brands, we have divested of our industrial property rights of the Tretorn subgroup, which include trademark rights, patents and designs. In addition, the related operating business was sold and the respective entities were excluded from the scope of consolidation accordingly. Due to the very small size of the Tretorn business with respect to sales, profit and net assets, these transactions had no material impact on the results and financial position of the PUMA group.

Brand and Product Update

Underlining our strong position in Teamsport, PUMA achieved a great visibility at both the Copa América in Chile and the FIFA Women’s World Cup in Canada. At the Copa América, PUMA partnered host nation Chile crowned their stellar performance throughout the tournament with their first continental trophy. The PUMA team secured their triumph with a penalty shootout over archrival Argentina and its PUMA star Sergio Agüero, who was amongst the tournament’s best goal scorers with three goals. Agüero’s run of success follows an outstanding English Premier League 2014/15 season, finishing as the top scorer with 26 goals. In Germany, Bundesliga’s top scorer list was led by PUMA player Alexander Meier of Eintracht Frankfurt with 19 goals. At the FIFA Women’s World Cup, PUMA star Marta made the headlines by becoming the all-time leading scorer of Women’s World Cup history, while Germany’s Célia Šašić finished the tournament as the top goal scorer with six goals. Together with the three participating PUMA teams Cameroon, Ivory Coast and Switzerland, more than 50 PUMA players contributed to a strong on-pitch presence for PUMA.

Both the Copa América and the FIFA Women’s World Cup in Canada served as a great stage for the introduction of PUMA’s innovative football boot evoSPEED SL. The newly revealed boot is PUMA’s lightest match boot to date thanks to a super light and almost translucent textile upper material. Whilst maintaining the necessary stability, the low weight PUMA SPEEDFRAME adds to the overall lightweight theme of the evoSPEED SL. Designed to give footballers a new game advantage enhancing speed and agility, the evoSPEED SL is worn on pitch by some of the world’s best players including Sergio Agüero, Marco Reus, Radamel Falcao, Marco Verratti, and Antoine Griezmann.

At the end of May, our top football club Arsenal FC became the most successful club in the history of the English FA Cup with a record of 12 wins by outplaying Aston Villa to win 4:0 in the Final. Two weeks later, we launched the much anticipated 2015/16 Arsenal home kit for the second year of our partnership. The kit combines a modern approach to materials with a traditional silhouette and was launched through a live show at the Emirates Stadium by club legend and PUMA ambassador Thierry Henry.

In our Running and Training category, we built on the successful introduction of our revolutionary running technology IGNITE and continued to develop the IGNITE platform with the launch of IGNITE PWRCOOL. PWRCOOL is PUMA’s innovative cooling technology designed to keep the body at an optimal temperature to preserve energy and is incorporated into a complete collection of thermo-regulated apparel and Footwear designed with CoolCELL: highly functional materials that draw sweat away from the skin while anatomically placed air flow features offer superior temperature regulation. PUMA’s long history of working with Jamaican athletes such as the Fastest Man in the World, Usain Bolt, and Olympic medalist Hansle Parchment, provided the perfect conditions to test PWRCOOL as part of the development process.

In early May, COBRA PUMA GOLF athlete Rickie Fowler powered his way to a stunning victory at The Players Championship in Ponte Vedra Beach, Florida, with the greatest finish in the 34-year history of the event. Fowler was decked out in PUMA Golf apparel and equipped with his COBRA Golf clubs. With this signature style and world class performance, Rickie Fowler continues to reinforce COBRA PUMA GOLF’s message of game enjoyment coupled with excellence.

Strategy Update

The first half of this year has shown that PUMA is well under way in improving its product engine. Our stronger sales performance, especially in Footwear underlines the increased attractiveness of our products. With our successful product initiatives in the Spring/Summer season we have underlined PUMA’s mission of becoming the Fastest Sports Brand in the World.

One of the important initiatives was the launch of our new running technology IGNITE in Q1. IGNITE has delivered very solid sell-in and sell-through performance in both Wholesale and own Retail. In the second quarter, we have further nurtured this product platform with the introduction of IGNITE PWR COOL.

In Teamsport, we are claiming back territory with our two footwear platforms evoSPEED and evoPOWER, which we continue to support with new designs, materials and innovations such as the newly launched EvoSPEED SL, which only weighs 103 grams. Both platforms have been prominently featured in our marketing campaign this year and delivered high sell-through across geographies.

PUMA and Kering Eyewear signed an eyewear partnership agreement for optical frames and sunglasses to be launched in Spring/Summer 2016. These will be divided into three main segments: Performance, Active and Sportstyle. In line with PUMA’s focus on sports performance, the range will also include eyewear items specifically designed for Running and Golf.

We have continued to strengthen the PUMA brand with ongoing marketing investments and enhanced marketing communication. Our campaign in the first half of this year has focused on showing our athletes and products in action.

In the second quarter, we have started featuring our newest brand ambassador Rihanna prominently through an in-store marketing campaign focusing on the season’s female training styles. With this campaign we have affirmed our strong commitment to women athlete consumers. Rihanna is an ideal brand ambassador admired by women across the world, thanks to both her personality and iconic style. While she is already generating positive PR buzz for PUMA, Rihanna will be at the center of our ongoing marketing campaign over the upcoming months. In a television commercial as well as online and other offline media she will feature our IGNITE XT training shoe and other commercial products. Rihanna is currently working closely with our design teams. While the first Rihanna-inspired styles are already being launched in the second half of 2015, her own collection will be in stores in 2016.

The new in-store concept for PUMA’s own retail was first revealed in our full price store in Herzogenaurach earlier this year. Since then further stores have been opened, including Hong Kong, Turkey and Mexico. In the new PUMA stores we can better tell our product stories, reveal the technologies behind them and strengthen PUMA’s positioning as a sports brand. All new and refurbished stores are showing above average performance and an increased share of footwear sales.

Outlook for the Financial Year 2015

The positive sales development registered in the first half-year 2015 came in above our expectations. Nonetheless, we still continue to expect an increase in the medium single-digit range for full-year currency-adjusted net sales. For the second half of 2015, we anticipate higher sales growth in Q4 than in Q3.

However, as already expressed in the release of the first quarter results, the adverse developments of foreign exchange rates since the beginning of the year, particularly the strengthening of the US Dollar versus nearly all other currencies, had a significant negative impact on PUMA’s reported gross profit margin. PUMA has already taken and will continue to take countermeasures, but the impact will not fully offset the negative currency impact on the gross profit margin. Therefore, we still expect a drop in the gross profit margin for the full year in a range of 100 to 150 basis points versus last year (2014: 46.6%).

In 2015, PUMA will continue to invest strongly in marketing to further enhance and reinforce its new brand positioning. The investments in the upgrade of PUMA’s current IT-infrastructure and the extension of our own retail store network will also continue. This will result in an increase in OPEX that will be further impacted by negative currency effects. At the same time, PUMA’s management will continue to put a strong emphasis on strict control of other operating costs.

Based on the business development in the first half-year 2015, we reiterate our expectation that adverse currency effects will continue to impact our gross profit margin, OPEX and EBIT. At the current exchange rate levels and thanks to the countermeasures, that we have already implemented, we reiterate our expectation for a full-year EBIT in a range between € 80 million and
€ 100 million, with net earnings impacted accordingly. 

Notes to the editors

• This press release and financial reports are posted on about.puma.com.
• PUMA SE stock symbol:
• Reuters: PUMG.DE, Bloomberg: PUM GY,
• Börse Frankfurt: ISIN: DE0006969603– WKN: 6969603

Notes relating to forward-looking statements:

This document contains forward-looking information about the Company’s financial status and strategic initiatives. Such information is subject to a certain level of risk and uncertainty that could cause the Company's actual results to differ significantly from the information discussed in this document. The forward-looking information is based on the current expectations and prognosis of the management team. Therefore, this document is further subject to the risk that such expectations or prognosis, or the premise of such underlying expectations or prognosis, become erroneous. Circumstances that could alter the Company's actual results and procure such results to differ significantly from those contained in forward-looking statements made by or on behalf of the Company include, but are not limited to those discussed be above.

GROWTH IN ALL PRODUCT CATEGORIES / POSITIVE TREND IN FOOTWEAR CONTINUES

2015 Third Quarter Facts

• Reported sales up by 8.4% to € 914 million (+3.1% currency adjusted)
• Growth in Footwear driven by Running and Training category
• Gross profit margin down 50 basis points to 45.8% due to adverse currency effects
• OPEX increase due to marketing/retail activity, IT investments, and currency impacts
• Operating result (EBIT) comes in at € 41 million
• First appearance of Rihanna in PUMA TV ads and first Rihanna inspired footwear launch
• Second wave of Forever Faster marketing campaign focuses on Training featuring IGNITE XT and PUMA brand ambassadors
• PUMA athlete Usain Bolt wins three gold medals in Beijing, underlining PUMA being the Fastest Sports Brand in the World

2015 Nine Month Facts

• Reported sales grow by 12.9% (+4.9% currency adjusted) to € 2,509 million, in line with expectations
• Gross profit margin falls by 80 basis points to 46.4% due to currency effects
• OPEX amount to € 1,090 million due to higher marketing activities, retail expansion, and IT investments as well as adverse currency impacts
• Operating result (EBIT) amounts to € 85 million
• Earnings per share come in at € 2.77
• Performance products especially in Running and Training have continued to show good sell-through

Bjørn Gulden, Chief Executive Officer of PUMA SE:

“PUMA’s sales in the third quarter developed as expected with growth in all product categories. I am happy to see that our footwear category has increased for the fifth quarter in a row. I am especially pleased to see that also the sell-out at retail to the end consumer is continuously improving in all categories. The launch of the first PUMA BY RIHANNA shoe, the "Creeper”, has been extremely successful and most retailers have sold out within hours or days. We have generally seen a very positive development in our Women's business and we will put even more focus on the female consumer going forward. The continued volatile currency trends in some markets and the weakness of the Euro, especially towards the US Dollar, continues to put pressure on gross profit margin, OPEX, and net earnings.  We have taken and will continue to take countermeasures but, as already indicated in the last two quarters, we cannot fully offset these negative impacts on our earnings. Good feedback from retailers, better sell-out and a solid order book validate our outlook for the fourth quarter and allow us to confirm our full-year guidance.“

Third Quarter 2015

Currency adjusted sales in line with expectations

In the third quarter of 2015, sales developed as anticipated: PUMA generated consolidated sales of € 914.4 million, representing an increase of 3.1% currency adjusted. In reported terms, the growth versus last year was 8.4%.

Americas outperform EMEA and Asia/Pacific region

In the third quarter, sales in the EMEA region (Europe, Middle East, and Africa) declined slightly by 3.6% currency adjusted to € 375.7 million. This result compares against high prior year figures, when last year´s performance was positively impacted by the Arsenal launch in the third quarter and included sales of Tretorn (the trademark rights were sold in the second quarter 2015). Without these effects, sales in the EMEA region would have been flat in the third quarter.

Growth in the Americas continued, with North and Latin America both showing strong performances, with sales up 10.8% currency adjusted to € 325.1 million. The United States were one of the key growth drivers with sales increasing double-digit.

In Asia/Pacific (APAC), sales were up 5.0% currency adjusted to € 213.6 million. While China and India showed substantial growth within the region, sales in Korea declined.

Performance products drive sales growth in all product segments

Footwear continued to grow as in the last quarters and is the main driver of PUMA’s total increase in net sales: Sales of € 408.4 million represent a rise of 3.5% currency adjusted. This development is mainly due to the growth of our Running and Training category with the IGNITE and Descendant product platforms.

In the Apparel segment, the sales growth of 2.5% currency adjusted to € 346.9 million was mainly attributable to the success of the Training products.

Sales with Accessories went up 3.7% currency adjusted to € 159.1 million, supported by strong sales in Europe and North America.

Gross profit margin impacted by currency effects

At 45.8%, gross profit margin fell short of last year´s figure by 50 basis points, due to negative currency effects impacting cost of goods sold. The footwear gross profit margin decreased from 41.9% to 41.2%, the apparel margin rose from 49.6% to 49.8% and the margin for accessories fell from 50.3% to 49.1%.

OPEX in line with expectations

Operating expenditures (OPEX) amounted to € 381.9 million in the third quarter. This represents an increase of 9.3% in reported terms versus the third quarter in 2014. As in previous quarters, OPEX was again impacted by negative currency effects, while PUMA continued to invest in marketing activities to further strengthen the brand´s positioning as the Fastest Sports Brand in the World. Ongoing campaigns as well as an increased number of own retail stores in operation also contributed to the higher OPEX. At constant currencies, the increase in OPEX is limited to 4.3% versus last year, reflecting tight underlying cost control.

Operating result (EBIT)

At € 41.1 million, the operating result was 11.2% below the last year´s figure.

Financial result

Unfavorable differences from currency conversions continued to weigh on the financial result, which came in at € -5.1 million.

Net earnings

Net earnings of the third quarter amounted to € 20.0 million (compared to € 28.9 million in the third quarter last year), resulting in earnings per share of € 1.34 (compared to € 1.93 last year).

Nine Months 2015

In the period from January to September 2015, consolidated sales developed in line with our expectations, rising by 4.9% currency adjusted to € 2,508.5 million. In reported terms, the increase is significantly higher at 12.9% as major currencies, in particular the US Dollar and the Chinese Renminbi, strengthened against the Euro.

Americas particularly strong

In the EMEA region, sales were flat at € 987.9 million, as stronger sales in Germany and Poland could not compensate for declines in other markets such as Switzerland and Benelux.

The Americas showed the highest growth among the regions, with both North and Latin America contributing to the increase of 9.4% currency adjusted to € 942.4 million. Within Latin America, Argentina as well as Mexico stood out with a solid double-digit growth.

Sales in Asia/Pacific were also strong, rising 7.2% currency adjusted to € 578.2 million. This increase was supported by the positive development in China and India, while sales in Japan were more muted.

All product segments contribute to growth

Footwear was the best performing segment in the first nine months, showing an increase of 8.6% currency adjusted to € 1,145.3 million. The Running and Training and the Teamsport categories supported this good result, reflecting the relevance of PUMA´s strategy to focus on performance.

Apparel rose 2.6% currency adjusted to € 890.0 million, positively impacted by the development of Training products. Accessories increased slightly by 0.6% currency adjusted to € 473.1 million.

PUMA’s retail sales increase in absolute terms and on a comparable store basis

PUMA increased the share of retail sales in total net sales from 19.5% to 20.4%. In absolute terms, retail sales rose to € 510.9 million (+9.5% currency adjusted). This result was supported by improved sales on a comparable store basis as well as an increased number of retail stores operating (33 more stores compared to one year ago).

Gross profit margin impacted by adverse currency effects

Again, PUMA’s gross profit margin for the period was strongly impacted by negative currency effects. At 46.4%, it fell short of last year´s result by 80 basis points. The footwear gross profit margin decreased from 42.9% to 42.1%, apparel margin was stable at 50.4% and the margin for accessories decreased from 50.7% to 49.6%. PUMA will continue to take countermeasures such as selective price increases to secure profitability, but such adjustments are to be done carefully in order not to impact consumer demand. Furthermore, in some countries, the costs of hedging outweigh its financial benefits, or in some cases, currency hedging is not possible at all. In addition, we are aiming to reduce such exposure to volatile currencies by increasing the share of locally sourced products in some of the most impacted markets.

OPEX increase as a result of strong marketing and retail activities

In the first nine months of 2015, operating expenses (OPEX) amounted to € 1,090.4 million, a 15.5% increase in reported terms. This rise stems from unfavorable currency effects as well as strong marketing activities including media investments and sponsorships of brand ambassadors. Opening up new stores and investing into IT infrastructure also contributed to the development. At constant currencies, the increase in OPEX is limited to 7.8% versus last year, as PUMA continued to put a strong emphasis on strict control of other operating costs.

Operating income came in at € 85.4 million compared to € 117.4 million in the previous year.

Unfavorable differences from currency conversions weighed on the financial result, which fell to
€ -9.9 million. These effects were in particular related to Latin American countries and Turkey.

Net earnings for the first nine months came in at € 41.5 million compared to € 68.6 million in the previous year, representing earnings per share of € 2.77 (1-9/2014: € 4.59).

Net Assets and Financial Position

Increase in working capital to serve higher demand

To support sales growth and serving the higher demand from new retail stores as well as ensuring product availability, inventories increased by 20.2% to € 689.5 million. Trade receivables went up by 3.3% to € 565.6 million. Trade payables were at € 509.0 million, rising 10.9% compared to last year´s figure. In total, working capital rose 11.8% to € 711.4 million.

As a result of the higher working capital requirements, the free cashflow went down to € -248.0 million for the nine-month-period 2015 compared to € -114.4 million as of September 30, 2014. The free cashflow was also impacted by higher CAPEX, which grew from € 47.8 million last year to
€ 54.6 million. This reflects our increased investment in IT and retail stores.

Cash and cash equivalents

Cash and cash equivalents were also impacted by the higher working capital requirements and decreased by 12.1% to 269.6 million, while borrowing increased as part of PUMA’s short term financing activities.

Brand and Product Update

In our Running and Training category, we benefitted from excellent athlete and team performances at the 2015 IAAF World Championships in Beijing with 18 podium positions for PUMA sponsored athletes and teams. The World’s Fastest Man Usain Bolt once again proved his status as the greatest athlete of all time with triumphs in the 100m, 200m and 4x100m relays, extending his record-breaking personal haul of IAAF World Championships gold medals to 11. The stellar performances of the Jamaican Team, which finished second in the medals table after Kenya, as well as the performances of the other PUMA teams including the Bahamas, Cuba, Grenada, Cayman Islands, Switzerland and the Dominican Republic, secured a strong brand visibility of PUMA throughout the competition.

The great achievements of our athletes in Beijing’s National Stadium came only shortly after the launch of our second major Forever Faster brand campaign, which had a dedicated focus on Training. Asking the question “What are you training for?” the campaign was brought to life through the unique training stories of PUMA’s most elite ambassadors such as Usain Bolt, Rihanna, Sergio Agüero, Arsenal Football Club, and the Cuban National Boxing team. The films intimately capture our athletes’ motivations and tactics to constantly improve through training. Underpinning this campaign was PUMA’s latest innovative footwear offering within the IGNITE franchise: the IGNITE XT. This high intensity training shoe’s responsive design maximizes energy and movement throughout high intensity workouts.

In our Teamsport category, we recently launched the latest iteration of our eye-catching Duality football boots, continuing the theme of two distinct coloured boots in one pair. This was applied to PUMA’s two football boot families, evoPOWER and evoSPEED, and worn by PUMA stars such as Cesc Fàbregas, Sergio Agüero, Marco Reus, and Antoine Griezmann. Furthermore, PUMA introduced the new bright blue colourway of its lightest football boot to date, the evoSPEED SL. It is worn on pitch by PUMA stars including midfielder Marco Verratti, who helped to secure the qualification of the PUMA partnered Italian national team for the 2016 UEFA European Championship next year in France. PUMA teams Czech Republic, Slovakia, Austria and Switzerland have also qualified.

In our successful Motorsports category, PUMA continues to be a leading supplier with its outstanding Mercedes AMG Petronas and Scuderia Ferrari F1 teams. Mercedes' Lewis Hamilton won his third Formula 1 Drivers’ World Championship with his 10th victory of 2015 at a thrilling United States Grand Prix two weeks ago. Having already grasped the Constructors' Championship title for the second consecutive year prior to this, the “Silver Arrows” are enjoying their most dominant season in more than 60 years.

In September, COBRA PUMA GOLF golfer Rickie Fowler enjoyed another victory at The Deutsche Bank Championship at TPC Boston. Wearing his signature orange apparel and equipped with his COBRA Fly-Z+ Driver, Fowler powered his way to a victory. His looks consisted of PUMA apparel and footwear from our 2015 Autumn/Winter collection, for example the Titantour, the coolest shoe in golf. COBRA PUMA GOLF athlete Lexi Thompson recently won the LPGA KEG Hana Bank Championship in South Korea, proving her outstanding talent once again with her second victory of the year and sixth overall.

Strategy Update

Our sales for the first nine months of this year and the very positive feedback from retailers around the world regarding our new products as well as a strong order book confirm that we are on the right track. Our stronger sales performance in Footwear underlines our progress in becoming the Fastest Sports Brand in the World.

We have continued to improve our product offering for women and our communication approach to them. Building on a strong heritage and credibility with women, we have emphasized female consumers as a key growth segment for PUMA. A key element of this strategy is our collaboration with world-famous artist Rihanna as brand ambassador and Creative Director, which we have taken to a new level. She plays a prominent role in our second Forever Faster brand campaign, a multi-million euro media investment with a dedicated focus on Training. Within the campaign, Rihanna is featuring the training shoe IGNITE XT. Her first TV commercial for PUMA initially aired in September.

Beyond a mere endorsement, PUMA has just launched the first in a series of Rihanna-inspired footwear and apparel styles. The “Creeper” is the first sneaker from PUMA by Rihanna under her FENTY Label. It remixes the iconic PUMA Suede with a creeper sole inspired by the NYC punk rock scene with high-end details and Rihanna's signature branding. The first limited edition black and white colorway of the Creeper was available only on our PUMA.com website and a PUMA-hosted pop-up store in New York’s SoHo neighborhood. The shoe generated unprecedented social media and PR coverage for PUMA and sold out within hours. More colorways are currently being sold via PUMA.com and key retail partners worldwide.

We will further optimize our product offering for women across our performance and lifestyle categories in the coming seasons. This is not limited to, but includes additional Rihanna-associated styles, such as the boxing-inspired Eskiva shoe available in November 2015 and a complete collection of footwear and apparel styles to be launched in 2016.

Our efforts to further improve our close collaboration with key retailers are critical in our go-to-market strategy. The Creeper launch would not have been possible without the close alignment of our product and marketing teams with key retailers. Additionally in North America we have improved our presence with shop-in-shops, special wall units and permanent in-store communication at major sports accounts including Finish Line and Champs. As for PUMA’s owned and operated stores, we have continued to roll out our new Forever Faster store layout to currently eleven locations worldwide.

Social, economic and environmental sustainability is a core value for all of us at PUMA. We believe that keeping these dimensions in balance is crucial to achieving sustainable business development. Therefore we welcomed the opportunity of becoming an official partner of COP21. As an official partner of the UN Climate Change Conference in Paris, we will equip 180 students in charge of welcoming visitors from all over the world. These trainee hosts and hostesses will wear specifically designed PUMA outfits that are entirely made of organic cotton.

Outlook for the Financial Year 2015

The business development in the first nine months of 2015 was in line with our expectations and our full-year guidance for 2015 remains unchanged.

We reiterate our expectation that adverse currency effects, particularly the strengthening of the US Dollar versus nearly all other currencies, will continue to impact PUMA’s reported gross profit margin, OPEX and EBIT. PUMA has already taken and will continue to take countermeasures, but the impact will not fully offset the negative currency effects.

In the remainder of 2015, PUMA will continue to invest strongly in marketing to further enhance and reinforce its new brand positioning. The investments in the upgrade of PUMA’s current IT-infrastructure and the extension of our own retail store network will also continue. This will result in an increase in OPEX that will be further impacted by negative currency effects. At the same time, PUMA’s management will continue to put a strong emphasis on strict control of other operating costs.

Thanks to the countermeasures implemented and at the current exchange rate levels, we expect a slightly softer drop in the gross profit margin for the full-year at the lower end of the range of minus 100 to 150 basis points versus last year. The improvement in gross profit margin due to these countermeasures, however, comes at a slight negative effect on net sales. Nonetheless, we continue to expect an increase in the medium single-digit range for full-year currency-adjusted net sales and we reiterate our expectation for a full-year EBIT in a range between € 80 million and € 100 million, with net earnings impacted accordingly.

Notes to the editors:

• This press release and financial reports are posted on about.puma.com.
• PUMA SE stock symbol:

Reuters: PUMG.DE, Bloomberg: PUM GY,
Börse Frankfurt: ISIN: DE0006969603– WKN: 6969603

Notes relating to forward-looking statements:

This document contains forward-looking information about the Company’s financial status and strategic initiatives. Such information is subject to a certain level of risk and uncertainty that could cause the Company's actual results to differ significantly from the information discussed in this document. The forward-looking information is based on the current expectations and prognosis of the management team. Therefore, this document is further subject to the risk that such expectations or prognosis, or the premise of such underlying expectations or prognosis, become erroneous. Circumstances that could alter the Company's actual results and procure such results to differ significantly from those contained in forward-looking statements made by or on behalf of the Company include, but are not limited to those discussed be above.

SALES GROWTH ACROSS ALL REGIONS AND PRODUCT SEGMENTS IN FOURTH QUARTER AND FULL-YEAR

2015 Fourth Quarter Facts

• Sales grow by 17.1% to € 879 million (+11.5% currency adjusted)
• Gross profit margin decreases to 42.7% due to adverse currency effects
• EBIT improves only slightly to € 11 million, because of continued heavy investments in OPEX, especially marketing, retail, and IT
• Strong sell-through of first Rihanna-inspired Footwear ignites PUMA’s women’s business

2015 Full Year Facts

• PUMA’s full-year sales increase by 14.0% to € 3.4 billion (+6.5% currency adjusted)
• Sales growth mainly driven by Footwear and Running and Training category
• Gross profit margin decreases to 45.5% due to adverse currency effects
• OPEX increase due to higher marketing activities, retail upgrades, and IT investments as well as adverse currency effects
• EBIT at € 96.3 million in line with guidance
• Net earnings amount to € 37.1 million (2014: € 64.1 million) and EPS come in at € 2.48 (2014: € 4.29)
• New product launches perform strongly, both in sports performance and lifestyle categories

Bjørn Gulden, Chief Executive Officer of PUMA SE

The year ended with a strong fourth quarter showing double digit reported growth across all regions and all product categories. We saw improved sell-through both in our owned and operated retail and with our retail partners. We know that we still have a lot to improve but feel that during this year we have strengthened the PUMA brand, presented better products and further improved the co-operation with our retail partners.

We have seen progress in our performance categories, led by Running and Training, as well as our lifestyle business where especially our classic styles developed strongly in the second half of the year. I am especially proud to see our positive development in the women’s business where our co-operation with Rihanna and a strong product offering have increased the interest from both retailers and consumers.

Unfortunately the strengthening of the US-dollar versus nearly all other currencies has had a significant impact on both our gross profit margin and our operating expenses and therefore also on our EBIT and net earnings.

But we feel that we as a company have made progress in 2015 and that we have laid the groundwork for high single digit sales growth as well as improved EBIT and net earnings in 2016.  We look forward to a great sports year with the Olympic Games in Rio, Copa America in the USA and the UEFA Euro 2016 in France. We feel we are well prepared with better products, more and better marketing and an even closer co-operation with our retailers.

Fourth Quarter 2015

Double-Digit Sales Growth thanks to strong Performance across all Regions and Product Segments

PUMA's growth trend in revenues continued in the fourth quarter 2015. Sales increased by 17.1% to € 878.9 million (+11.5% currency adjusted), compared to € 750.8 million in the previous year.

In the EMEA region, revenues were particularly high, rising 20.3% to € 270.3 million (+21.0% currency adjusted). This development was supported by a strong Footwear performance in nearly all countries of the region.

The Americas region outperformed last year’s sales by 15.4% to € 368.4 million (+7.2% currency adjusted). Both North- and Latin America grew. All product segments were positive, with Apparel delivering the strongest growth.

Sales in the Asia/Pacific region came in at € 240.2 million, representing an increase of 16.2% (+8.6% currency adjusted) against the fourth quarter 2014. China and Oceania were the strongest performers in the quarter. While Footwear and Apparel grew, Accessories sales were broadly flat due to the weaker Golf business.

PUMA's Footwear segment achieved growth for the sixth quarter in a row. Sales improved by 16.1% (+11.0% currency adjusted) to € 360.8 million with strong gains in the Running and Training category as well as the successful launch of the first Footwear models designed by Rihanna.

With an increase of 21.1% (+15.3% currency adjusted) to € 354.8 million, the performance in Apparel was even stronger, as our Training and Fundamental products continued to resonate well.

Accessories saw a rise of 11.0% (+5.1% currency adjusted) to € 163.3 million despite a continued weak Golf environment.

Gross Profit Margin impacted by Currency Effects in the fourth Quarter

Due to adverse currency effects, PUMA’s gross profit margin decreased from 45.0% to 42.7% in the fourth quarter of 2015. This decrease applies to all categories. Footwear gross profit margins fell from 41.6% to 38.6%, Apparel margins declined from 47.1% to 46.5% and the margin for Accessories went down from 47.8% to 43.7%.

OPEX Growth in Line with Plan

Operating expenses rose by 11.3% and amounted to € 370.1 million in the fourth quarter 2015. That increase stemmed mainly from intensified marketing and retail activities. At constant currencies, the increase in OPEX was limited to 5.7%.

Operating Result / Financial Result / Net Earnings and Earnings per Share

Operating result (EBIT) was ahead of 2014 by 2.6% to € 10.9 million with the impact of sales growth more than compensating for lower gross profit margins and higher OPEX. The financial result amounted to € -1.3 million compared to € -1.0 million last year, while taxes on income decreased from € -4.7 million to € -2.8 million in the fourth quarter. Net earnings came in slightly improved at € -4.3 million (Prior year: € -4.6 million) and earnings per share were at € -0.29 compared to € -0.30 in the fourth quarter 2014.

Full-Year 2015

Full-Year Sales increase by 14.0%

In the financial year 2015, PUMA sales improved by 14.0% to around € 3.4 billion. The currency adjusted increase amounted to 6.5% and was in line with the guidance for 2015, which had anticipated currency adjusted growth to be in the medium single-digit range. All regions and product segments contributed to the positive development, posting a currency adjusted growth.

In the EMEA region, sales increased by 4.3% (+3.6% currency adjusted) to € 1.3 billion. Growth was in particular driven by the United Kingdom, France, and Germany with Eastern European countries, the Middle East, and Africa also reporting positive performances.

Sales developed particularly well in the Americas region, rising 22.5% (+8.8% currency adjusted) to € 1.3 billion. Both North- and Latin America contributed to the increase.

The Asia/Pacific region generated revenues of € 818.4 million, representing an increase of 17.5% (+7.6% currency adjusted). This was mainly attributable to higher demand from China and India, while growth in Japan stagnated, affected by the challenging overall economic situation.

The most important product segment for PUMA, Footwear, showed sustained growth through the year and had a very good overall performance in 2015, driven by the Running and Training as well as Teamsport categories. Reported sales increased by 17.4% (+9.2% currency adjusted) to € 1.5 billion.

Sales in the Apparel segment also improved significantly, thanks to strong demand for our Running and Training products. At € 1.2 billion, sales were up 12.9% (+6.0% currency adjusted) compared to 2014.

Sales in Accessories improved by 8.5% (+1.7% currency adjusted) to € 636.4 million.

Strong Increase in PUMA’s Retail Business

PUMA's retail sales increased by 9.3% currency adjusted to € 726.2 million, equivalent to 21.4% of total sales for the year. Growth was achieved on a like-for-like comparable store basis as well as by an expansion of the retail store portfolio and upgrades in consumer experience with the continued roll-out of the new “Forever Faster” store design at selected locations.

CURRENCY EFFECTS PUT PRESSURE ON GROSS PROFIT MARGIN

In line with expectations, PUMA's gross profit margin decreased in the financial year 2015, down 110 basis points to 45.5% compared to 46.6% in the previous year. The Footwear margin for the full-year was 41.2% after 42.6% in the previous year. The Apparel margin decreased slightly from 49.5% to 49.3%. The Accessories margin also declined from 50.0% to 48.0%. Those developments were principally caused by adverse currency effects, which significantly increased our input costs. Without the adverse currency effects the margin development would have been slightly positive.

Marketing efforts continue to drive OPEX

PUMA continued to place a strong emphasis on strict cost management during 2015 and prioritized marketing investments, aimed at cementing PUMA’s brand positioning as the Fastest Sports Brand in the World. 2015 saw the next successful iteration of the “Forever Faster” marketing campaign as well as investments into PUMA’s retail store portfolio and IT-infrastructure. Consequently, OPEX rose by 14.4% from € 1.3 billion to € 1.5 billion. At constant currencies, the increase in OPEX was limited to 7.3%.´

Operating Result (EBIT)

As projected, EBIT was significantly impacted by negative currency effects on the gross profit margin and by enhanced marketing. EBIT was € 96.3 million, down by 24.8% compared to 2014.

Financial Result

For the full-year 2015, PUMA’s financial result was at € -11.2 million as against € -6.2 million in 2014.

Net Earnings and Earnings per Share

Net earnings amounted to € 37.1 million (2014: € 64.1 million), representing earnings per share of € 2.48 (2014: € 4.29).

Net Assets and Financial Position

Business Expansion results in higher Working Capital Requirements

The Group's working capital increased to € 532.9 million as a consequence of sales growth and expanded product availability. Inventories were up 15.0% to € 657.0 million (previous year: 571.5 million), which is not only necessary in order to accommodate our planned sales growth in 2016, but also driven by higher unit cost and our extended retail store portfolio. Trade receivables rose by 7.6% to € 483.1 million (€ 449.2 million), while trade payables reported only a slight increase of 0.9% from € 515.2 million to € 519.7 million.

Free Cashflow

PUMA’s free cashflow came in at € -98.9 million as against € 39.3 million at year-end 2014. This development stemmed mainly from higher working capital requirements related to inventories.

Cash Position

As of December 31, 2015, PUMA's cash position amounted to € 338.8 million compared to € 401.5 million at the balance sheet date last year.

Dividend Proposal of € 0.50

The Administrative Board will propose an unchanged dividend of € 0.50 per share for the financial year 2015 at the Annual General Meeting on May 4, 2016.

Strategy Update

In 2015, we made further progress towards our mission of becoming the World’s Fastest Sports Brand. Our strategy encompasses five strategic priorities: Increasing PUMA’s brand heat, improving our product engine, optimizing our distribution quality, increasing the speed within our organization and infrastructure, and upgrading our IT infrastructure.

The repositioning of our brand began in 2014 with the largest brand campaign in our company history. It was clearly the focus of our activities again in 2015. The second "Forever Faster" advertising campaign in 2015 focused on our brand ambassadors and showed how they were training with PUMA products to get into shape for the major events in 2016. Rihanna joined Usain Bolt, Arsenal London and other athletes for the campaign. That included her first TV spot for our new training shoe IGNITE XT. Leading up to this highlight, she created a high level of buzz and positive attention in the media and on social networks.

In 2015, we made good progress in further improving our product engine. The collections stood out for their clearer design, more innovative technologies, and greater commerciality of the products. Not only was the feedback from our retail partners more positive, but also the increase in sell-in and sell-through shows that the product improvements have started to resonate well with our customers. The product highlights in 2015 include our new running shoe technology IGNITE, which we have built into a cornerstone of our Running and Training category with continuous new product launches – such as the IGNITE PWRCOOL, the IGNITE PROKNIT and the IGNITE XT. In Football, we continued to strengthen our product platforms evoSPEED and evoPOWER. The new products include evoSPEED SL, which is the lightest football shoe in the market at 103 grams. In Lifestyle, we introduced the first shoe models designed by Rihanna. The Creeper model received great attention in social media and in the press and the first color ways were sold out within hours. In addition, we also introduced the boxing-inspired Eskiva footwear collection. We will introduce a complete women's collection of shoes and textiles under the FENTY by Rihanna label during 2016. Our PUMA mainline products for women will also continue to be inspired by Rihanna’s creative direction.

In order to improve the quality of our sales and distribution, we established further joint product and marketing programs with our key retailers to showcase our brand in the right retail environment and drive sell-through. In 2015, we continued the roll-out of the retail concept "PUMA Lab", initially launched with Foot Locker in 2014, both in the U.S. and in the first locations in Europe and Australia. During the year we intensified our collaboration with other well-known retailers with the aim of improving the presence of the PUMA brand in stores, better communicating our product promise on site, and thereby achieving a sustained sales increase. For example, we continued to expand our presence in major sports retailers such as Finish Line and Champs by adding new shop-in-shop systems, special shelving units and permanent in-store communication. Amongst our marketing partnerships with key retailers was the evoCHALLENGE football campaign with Intersport. The hard work we did to improve the service level to our retail partners has started to show results: PUMA DACH was crowned No. 1 in the SAZ customer satisfaction survey amongst 300 sports retailers in the category Fitness and was ranked third in Teamsport.

In 2015, we developed a completely new "Forever Faster" store concept for PUMA’s own retail stores. This concept was first introduced at the group headquarters in Herzogenaurach and then in 14 additional locations during the year. The new store concept optimizes the presentation of our products and the related technologies and strengthens our position as a sports brand. To further improve and expand our online presence, we have rolled out and further enhanced our integrated web shop in 2015. The continuous optimization of the e-com website and our online product offering is a high priority for PUMA.

One of the key projects in terms of organizational structure was standardizing and optimizing the processes between PUMA and its suppliers by establishing a new platform to manage global order and invoice flows. One of the prerequisites was the implementation of an improved ERP-system supporting these standardized processes with our sourcing partners. Beyond that, PUMA has also made further progress in the modernization of our IT setup. That included the optimization of our basic IT-infrastructure and improved internal workflows. In 2016, we will initiate the implementation of an improved standard ERP-system for our local sales companies and continue the optimization of our internal platforms. We are very confident that our investments in these areas will lay the foundation for a fast, lean and efficient company in the future.

We also simplified our organization in other areas and made processes faster. For example, our two non-performance product areas Sportstyle and Fundamentals have been merged under joint leadership. PUMA is now also more efficiently organized in terms of regional setup. We have combined the two regions Europe and EEMEA under joint management and fostered the collaboration between both teams creating a simplified, more effective structure. PUMA is now also serving the heterogeneous Asian markets more effectively. The regional team in APAC has been integrated into the global organization, eliminating the additional reporting layer and giving local management direct access to our global resources.


We believe that "The future is female". For years, women have become more and more interested in sports, both in terms of sports viewership as well as participating in professional and leisure sports. Clearly the female market segment has been growing and outpacing the overall sports market. In addition, women have a much more profound impact on the entire sports industry. Athletic wear is turning into fashion as women have increasingly combined sportswear and sports-inspired pieces into their daily outfits. PUMA as the most fashion-forward global sports company has both the sports authenticity and the fashion credibility to be successful in the women’s athletic wear market. PUMA has a long history with outstanding female athletes and renowned creative partners and a diverse portfolio of current female brand ambassadors. We have been increasing our strategic focus on the female target group. A key element of this strategy is the partnership with Rihanna as our brand ambassador and creative director. Rihanna will directly influence our Performance and Sportstyle women’s collections with her intuitive, highly individual style.

Brand and Marketing Update

Following the launch of the home kits for our Football teams Italy, Switzerland, Austria, Czech Republic and Slovakia last November, all of whom qualified for the European Championships in France this summer, we recently introduced the away shirts. They also feature PUMA’s new apparel technology ACTV Thermo-R, strategically inserted in both the front and the back of the shirt to help players maintain an optimum body temperature. The taping in the shirts provides an extra snug fit, micro-massaging the skin in specific areas to enable a faster, more effective energy supply to the active muscles.

We only recently underlined again our strong innovation power for sports products when our evoTRG Football jacket was chosen as Winner in the ISPO AWARD 2016 category Apparel Performance Products Outer Layer. The jacket comes with dynamic thermoregulation control and has ergonomically-placed inserts that adapt during football moves: they open when in motion to keep players cool and close when the movement stops to keep them warm.

In December 2015, we extended our roster of world-class athletes in our Running and Training category through a new endorsement partnership with Canadian sprint sensation Andre De Grasse, which followed a number of other signings including Asafa Powell and Jenna Prandini. De Grasse shot to stardom, when he claimed a 100m bronze medal at the 2015 IAAF World Championships at only 20 years of age. He will become an increasingly important athlete within the PUMA family and feature in our Running campaigns across all regions in the lead up to the Olympic Games in Rio later this year.

Underlining our ambition to improve our product offering for women, which represents a key growth segment for PUMA, we have just launched our Spring Summer 2016 Training collection, which clearly recognizes the demands faced by today’s women with an active lifestyle. It includes both our Pulse XT Training shoe, which returns with great new colourways and offers maximum flexibility as well as a whole selection of sports bras to suit every women’s needs. The collection is presented by our newly signed Running and Training ambassadors Jenna Prandini, Enzinne Okparaebo and Jamie Granger.

A key partner in strengthening our women’s business is our brand ambassador and Women’s Creative Director Rihanna, who stole the show at New York Fashion Week earlier in February, when she launched a complete collection of footwear and apparel styles of her PUMA by Rihanna Collection and FENTY label. Her first product introduction as PUMA Women's Creative Director included the PUMA Creeper shoe released in September 2015 – which was a huge success.

In our Motorsport category, 2015 was another very successful season for PUMA, with Championship titles for MERCEDES AMG PETRONAS and Lewis Hamilton winning both the Drivers’ and Constructors’ standings in Formula One. Underlining our leading position as a supplier in Motorsport, our new long-term partnership with RED BULL RACING kicked-off yesterday during a spectacular event in London, when we introduced this season’s performance racewear, teamwear, and PUMA’s Red Bull Racing lifestyle and replica merchandising collections.

Outlook for the Financial Year 2016

Since autumn 2014, PUMA has invested heavily into its Forever Faster Campaign to position PUMA as the Fastest Sports Brand in the World. The partnerships with PUMA’s most elite ambassadors – the World’s Fastest Man Usain Bolt, star striker Sergio Agüero, Golfstar Rickie Fowler, Arsenal Football Club, Borussia Dortmund, the Jamaican and Cuban Olympic Federations, multi-platinum recording artist, designer and entrepreneur Rihanna, and more – have played a major role in increasing the brand heat and sell-through for PUMA in 2015.

With major improvements in the product offering, improved sourcing and higher investments in marketing, PUMA is confident that 2016 will be a year of solid sales growth with an initial improvement of profitability. As a consequence, currency-adjusted net sales are expected to increase at a high single-digit rate for the full-year 2016. The gross profit margin is forecasted to be on previous year’s level (45.5%), as countermeasures are planned to compensate the negative impact of further foreign currency developments for 2016 compared to 2015.

PUMA’s OPEX are forecasted to increase in a mid to high single-digit range. From a marketing perspective, the two major sporting events in 2016 (UEFA Euro 2016 and Rio 2016 Olympic Games) will require additional funding as does investment to modernize our retail store portfolio. Ongoing investments into the upgrade of PUMA’s IT-infrastructure will contribute to an increase in OPEX, but at all times management will continue to place a strong emphasis on strict control of other operating costs. At the current exchange rate levels, PUMA’s management expects that the operating result will improve in 2016 compared to last year. EBIT for the full-year 2016 is expected to come in between € 115 million and € 125 million with net earnings forecasted to improve correspondingly.

Notes to the editors:

• This press release and financial reports are posted on www.about.puma.com.
• PUMA SE stock symbol:
  Reuters: PUMG.DE, Bloomberg: PUM GY,
  Börse Frankfurt: ISIN: DE0006969603– WKN: 6969603

Notes relating to forward-looking statements:

This document contains forward-looking information about the Company’s financial status and strategic initiatives. Such information is subject to a certain level of risk and uncertainty that could cause the Company's actual results to differ significantly from the information discussed in this document. The forward-looking information is based on the current expectations and prognosis of the management team. Therefore, this document is further subject to the risk that such expectations or prognosis, or the premise of such underlying expectations or prognosis, become erroneous. Circumstances that could alter the Company's actual results and procure such results to differ significantly from those contained in forward-looking statements made by or on behalf of the Company include, but are not limited to those discussed be above.

QUARTERLY STATEMENT Q1 2016

• Sales increase by 3.7% to € 852 million (+7.3% currency adjusted), with Footwear being the main growth driver
• Gross profit margin remains flat at 46.8%, as price adjustments, combined with an improved product offering, compensate negative impacts from a stronger US-Dollar
• EBIT improves by 10.1% to € 41.3 million, despite increased marketing investments to support key initiatives
• Strong momentum in women's business continues, underpinned by the successful launches of new products and marketing concepts

Bjørn Gulden, Chief Executive Officer of PUMA SE:

“The first quarter of 2016 developed as we expected. We saw organic growth in all segments and all regions. The development in certain currencies slowed down the reported growth in both top and bottom line.We are especially happy to see that our sell through to consumers is improving. Both in our own retail and with our retail partners we see a continuous improvement. This is especially strong in our women’s business, where the launches of new products and new marketing concepts have started to show excellent results.We do now look forward to this year´s great sport events. The Copa América, the UEFA Euro 2016, and the Olympics in Rio are all events that will have a positive impact on our industry and where we look forward to showcase PUMA as an innovative and design driven sports brand.Despite the negative impact of currencies we confirm our outlook for the full year.”

Sales Development:

PUMA's sales growth continued in the first quarter of 2016. Sales increased by 3.7% to
€ 851.9 million (+7.3% currency adjusted), compared to € 821.4 million in the previous year.

In the EMEA region, sales grew by 3.8% to € 354.4 million (+6.6% currency adjusted), with stronger growth in Germany, Austria, and France. This development was supported by a good performance of the Teamsport category prior to the UEFA Euro 2016. We anticipate further growth in Teamsport for the second quarter leading up to the event. Our teams Italy, Switzerland, Austria, Slovakia, and Czech Republic will all be wearing PUMA jerseys featuring PUMA’s new ACTV Thermo-R technology, which helps to maintain the best body temperature.

Sales in the Americas region remained flat at € 288.1 million in reported terms, but grew 5.4% on a currency adjusted basis. All major countries in the region continued to improve, while the Latin American region was strongly impacted by the weakness of its currencies, notably the Argentinian Peso. This impacted the sales development in Euro terms severely.

Sales in the Asia/Pacific region recorded the highest growth rate, improving 9.8% (+11.2% currency adjusted) to € 209.4 million. China was the strongest performer in the quarter, followed by India.

PUMA's Footwear segment grew for the seventh quarter in a row. Sales rose by 3.7% (+8.5% currency adjusted) to € 392.0 million, with strong gains in the Sportstyle as well as the Running and Training categories, supported especially by the successful launches of women’s silhouettes.
With an increase of 3.7% (+7.0% currency adjusted) to € 290.1 million, the performance in Apparel was also positive, as our Training and Teamsport products continued to resonate well with our customers. Accessories saw a rise of 4.0% (+5.1% currency adjusted) to € 169.8 million despite a continued weak Golf environment. PUMA's own and operated retail sales, including e-commerce, increased 15.1% currency adjusted to € 158.7 million representing 18.6% of total sales in the first quarter of 2016. This was achieved by strong like for like sales growth, caused by better product offer and improved consumer experience in the stores, and the expansion of new stores built with the new “Forever Faster” store design.

Gross Profit Margin and Operating Expenses:

The gross profit margin remained broadly unchanged at 46.8%, despite the negative currency impact from the stronger US-Dollar in 2016 compared to last year. PUMA was able to successfully implement selective price adjustments and our improved product mix helped to mitigate the negative impact from a stronger US-Dollar. Footwear gross profit margins improved from 42.9% to 43.5%, while Apparel margins declined from 50.7% to 49.9% and Accessories softened from 49.6% to 49.2%.

Operating expenses rose only 3.0% and amounted to € 361.7 million in the first quarter 2016. That increase stemmed mainly from intensified marketing activities and retail upgrades, while other operating areas and functions were able to keep the cost stable.

Operating Result and Net Earnings:

Operating result (EBIT) was ahead of the first quarter 2015 by 10.1% at € 41.3 million, as sales grew stronger than operating expenses, supported by a stable gross profit margin.

Net earnings improved by 4.0% to € 25.8 million (prior year: € 24.8 million) and earnings per share were up correspondingly at € 1.73 compared to € 1.66 in the first quarter 2015.

Working Capital

PUMA’s working capital increased by 3.2% from € 744.7 million to € 768.4 million in line with the higher sales and business volumes.

Outlook 2016

We continue to expect a currency adjusted high single digit increase of net sales, a gross profit margin on previous year’s level (45.5%), an increase of currency-adjusted operating expenses in a mid to high single-digit range, and an operating result (EBIT) between € 115 million and € 125 million.

BRAND AND MARKETING

One highlight for PUMA in the first quarter was the FENTY PUMA by Rihanna fashion show at New York Fashion Week in February. A series of styles for the female consumer have been launched successfully, both in collaboration with Rihanna as well as in our inline collection. Key footwear styles such as Creeper and FENTY Trainer sold out within weeks or days. We also reintroduced our iconic DISC system into running by launching the IGNITE DISC. In Motorsport we introduced the first products under our new partnership with Red Bull Formula One Racing.

Notes to the editors:

• The financial reports are posted on www.about.puma.com.
• PUMA SE stock symbol:

Reuters: PUMG.DE, Bloomberg: PUM GY,
Börse Frankfurt: ISIN: DE0006969603– WKN: 696960

Notes relating to forward-looking statements:

This document contains forward-looking statements about the Company’s future financial status and strategic initiatives. The forward-looking statements are based on the current expectations and assumptions of the management team. These are subject to a certain level of risk and uncertainty including, but not limited to those described above or in other disclosures, in particular in the chapter Risk and Opportunity Management in the Group Management Report. In the event that the expectations and the assumptions do not materialize or unforeseen risks arise, the Company's actual results can differ significantly from expectations. Therefore, we cannot assume responsibility for the correctness of these statements.

2016 Second Quarter Facts

• Sales improve by 13% currency adjusted to € 827 million (+7% reported) with growth across all product segments
• Gross profit margin declines to 45.6%, negatively affected by stronger US-Dollar
• Moderate increase in OPEX of 3%
• Operating result (EBIT) improves by 75% to € 12 million
• Great visibility of PUMA in the UEFA Euro 2016 with five national teams wearing PUMA jerseys and PUMA player Antoine Griezmann being the top scorer and Player of the Tournament

2016 Half-Year Facts

• Sales up by 10% currency adjusted to € 1,678 million (+5% reported) with growth in all product segments and regions
• Gross profit margin decreases slightly to 46.2% due to negative currency impacts
• Operational leverage with OPEX increasing by 3% only
• Operating result (EBIT) rises by 20% to € 53 million
• Earnings per share improve by 28% to € 1.84
• PUMA Women's category further strengthened by continued launches of products such as the PUMA Fierce and new partnership with New York City Ballet

Bjørn Gulden, Chief Executive Officer of PUMA SE

“We are happy with the development in the second quarter. Sales developed as expected with double-digit organic growth. Gross profit margin continued to be under pressure due to the strong US-Dollar, but based on good cost discipline, we achieved operational leverage and saw nice improvements in both EBIT and net earnings.

We continue to see better sell-out of our products in the stores, as we feel consumers are getting more interested in our brand and products again. Meanwhile, we continue to work hard with the leading retailers in order to secure more and better space in their stores.

We felt that our teams and players in Euro 2016 in France gave us a lot of good visibility. We now see that our women initiatives with products and marketing around Rihanna and Kylie Jenner are working very well. Finally, we are looking forward to great Olympic days in Rio where fantastic athletes like Usain Bolt will be wearing our innovative and design driven products.”

Second Quarter 2016

Sales

PUMA’s sales growth continued in the second quarter 2016. Sales improved by 12.8% currency adjusted to € 826.5 million (+7.0% reported) with all segments contributing to this positive development.

The EMEA region performed extraordinarily well, posting a double-digit growth rate of 23.5% currency adjusted to € 321.3 million (+18.8% reported). All countries within the region showed strong performances, especially in the Teamsport category which gained extra momentum due to the UEFA Euro 2016.

In the Americas region, sales increased by 5.0% currency adjusted to € 315.6 million with growth in North- and Latin America. In Euro terms, however, sales decreased by 3.9%, as the weakness of currencies in Latin America, notably in Argentina, had a negative impact on reported sales.

The Asia/Pacific (APAC) region performed well with sales increasing by 10.3% currency adjusted to € 189.6 million (+9.1% in Euro terms). China was the main driver of this positive development.

Footwear was able to continue its growth path. Sales came in at € 360.2 million, representing an increase of 7.3% currency adjusted (+0.4% reported). Especially Sportstyle, Fundamentals and Teamsport achieved major gains.

Apparel posted the highest growth rate among the three product segments, improving by 19.5% currency adjusted to € 299.1 million (+13.6% reported). This excellent result derives mainly from the success of the Teamsport category, fuelled by the UEFA Euro 2016 and high growth in other product categories.

Sales in Accessories improved by 14.1% currency adjusted to € 167.1 million (+10.9% in Euro terms), driven by a higher demand for backpacks and headwear amongst others.

Gross Profit Margin and Operating Expenses

The negative currency impact from the stronger US-Dollar continued to put pressure on the gross profit margin, resulting in a decrease of 110 basis points to 45.6%, which is reflected in all product segments: The Footwear gross profit margin softened slightly from 42.3% to 41.9%, the Apparel margin fell from 50.7% to 49.5% and the Accessories margin declined more strongly, mainly due to the difficult golf market, from 50.0% to 46.6%.

Operating expenses (OPEX) increased only by 3.2% to € 368.8 million. The increase is mainly due to investments in PUMA retail stores and additional marketing activities associated with the UEFA Euro 2016. Other operating areas and functions kept the costs stable.

Operating Result and Net Earnings

The operating result (EBIT) improved by 75.1% to € 11.9 million. The main reason for this is the sales growth combined with the only moderate increase in operating expenses.

Net earnings amounted to € 1.6 million compared to a loss of € -3.3 million last year, translating into earnings per share of € 0.11 after a loss of € -0.22 in the second quarter of 2015.

First Half-Year 2016

Sales:

Based on two good quarters, sales for the first half-year 2016 improved by 9.9% currency adjusted to 1,678.4 million (+5.3% reported). The main driver was the strong performance in the EMEA and APAC regions. This sales development supports our full-year guidance of a high single-digit growth of currency adjusted net sales.

Sales in the EMEA region showed the highest increase, rising by 14.0% currency adjusted to € 675.7 million (+10.4% in Euro terms), with France and the DACH area (Germany, Austria, Switzerland) having developed particularly well. From a product perspective, all three product segments recorded double-digit growth.

In the Americas region, sales rose by 5.2% currency adjusted to € 603.6 million (-2.2% reported). North- and Latin America contributed to this positive development. However, negative currency effects in Latin America, notably in Argentina, continued to impact the sales development in Euro terms.

The Asia/Pacific region was also a strong driver of the overall growth of PUMA in the first half of 2016. Sales were up by 10.8% currency adjusted to € 399.0 million (+9.4% reported). China recorded a double-digit growth rate and Japan also showed a solid upturn. This positive development was supported by strong demand for PUMA Footwear in the region.

Sales in PUMA's Footwear segment amounted to € 752.2 million, representing an improvement of 7.9% currency adjusted (+2.1% reported). Especially Sportstyle and Fundamentals achieved major gains.

Apparel grew by 13.0% currency adjusted to € 589.2 million (+8.5% reported), contributing the major part of the overall sales increase. The strong performance is mainly due to the ongoing success of Teamsport as well as Running & Training products.

Accessories sales rose by 9.4% currency adjusted to € 336.9 million (+7.3% in Euro terms), driven by a higher demand for backpacks and headwear amongst others.

Including eCommerce, PUMA's own and operated retail sales increased by 12.2% currency adjusted to € 344.7 million. This represents a share of 20.5% of total sales for the first half of 2016 (20.2% in the previous year). The reasons for this rise are a healthy like-for-like sales growth and the extension of our retail store network, as well as a growing eCommerce business.

Gross Profit Margin and Operating Expenses

At 46.2%, the gross profit margin was 60 basis points below last year's 46.8%, solely due to the negative currency impact on our cost of sales from the stronger US-Dollar. Despite this impact the margin for the Footwear segment improved slightly from 42.6% to 42.7% thanks to a better product mix, whereas margins for the Apparel as well as for the Accessories segments went down from 50.7% to 49.7% and from 49.8% to 47.9% respectively.

Operating expenses (OPEX) amounted to € 730.5 million in the first half of 2016, being up moderately by 3.1%. The slightly higher costs compared to 2015 derive from intensified marketing activities and retail upgrades, while other operating areas and functions were able to keep the costs stable.

Operating Result and Net Earnings

At € 53.2 million, the operating result (EBIT) for the reporting period came in 20.1% higher than in 2015. This is due to the operational leverage as sales increased stronger than operating expenses.

At € 27.4 million, net earnings also improved by 27.6% (prior year: € 21.5 million). As a consequence, earnings per share went up to € 1.84 versus € 1.44 in the last year.

Working Capital and Cashflow

Working Capital

As at the balance sheet date, PUMA’s working capital amounted to 658.2 million, increasing only by 2.9% compared to June 30, 2015, in spite of higher sales and business volumes. This development in working capital is the result of an increase of inventories (+9.0%) combined with a slight reduction of trade receivables (-1.6%) and a moderate increase of trade payables (+2.7%).

Cashflow:

The free cash flow before acquisitions improved significantly by 40.1% amounting to
€ -100.5 million.

Outlook 2016

We continue to expect a currency adjusted high single-digit increase of net sales, a gross profit margin on previous year’s level (45.5%), an increase in currency adjusted operating expenses in a mid to high single-digit range and an operating result (EBIT) between € 115 million and € 125 million.

Brand and Product Update

The UEFA Euro 2016 in France proved to be a great stage to showcase PUMA as an innovative and design driven sports brand. With an on-field presence of almost 40% across all matches, PUMA’s five participating teams secured a strong visibility with their kits featuring our apparel technology ACTV Thermo-R. While Switzerland and Slovakia reached the round of sixteen following passionate and decisive appearances, Italy made it to the quarter final beating former European Champion Spain. A clear highlight was France's Antoine Griezmann, who was voted Player of the Tournament by the UEFA after being the top scorer with six goals that he shot in his dual coloured PUMA Tricks boots. PUMA player Olivier Giroud was ranked third in the scoring table of the event, while European Champion Portugal's Rui Patricio emerged as the Goalie of the Tournament. They all sported the yellow-pink boots on the pitch, in addition to players like Cesc Fàbregas, Nolito, Gianluigi Buffon, Giorgio Chiellini, Adam Lallana and Grzegorz Krychowiak. 

In the English Premier League, Leicester City Football Club made the unthinkable happen at the end of the season in May. The "Foxes" became the first PUMA team to take the Premier League title after an extraordinary season, while PUMA-sponsored Arsenal FC secured the second rank. Both teams qualified for the UEFA Champions League.

In the run-up to the Olympic Games in Rio this August, PUMA signed a partnership with the Athletics Association of Barbados (AAB) as the supplier of performance race and training wear along with all the federation apparel needs through the next major championships. With Jamaica, Cuba, Grenada, Dominican Republic and the Bahamas already in PUMA’s Carribbean stable, signing Barbados continues a focus on an area of the world where fast reigns supreme.  The Barbados Track & Field team will first wear PUMA apparel in Rio, with the deal seeing PUMA support the Caribbean nation through the next two IAAF World Championships.

In our Motorsport category, PUMA released the latest edition to its DISC footwear franchise, the futuristic looking metallic silver BMW X-CAT DISC. This striking shoe showcases PUMA’s reinvented DISC technology of internal wires that tighten the upper, which was originally launched in 1991 and provides ultimate comfort and a snug fit. In Formula One, our three partnered teams Mercedes AMG Petronas, Scuderia Ferrari and Red Bull Racing are currently holding the top ranks in both the drivers’ and the constructors’ standings in this year’s supberb season so far. 

In our Running category, we continued to expand our successful IGNITE franchise: the all-new IGNITE Dual for Autumn-Winter 16. It provides ultimate flexibility and cushioning for mid- and long-distance runners, thanks to the special sole with IGNITE FOAM and grooves. It is also available in IGNITE Dual Disc and IGNITE Dual evoKnit iterations. 

 

Strategy Update

In the first half of 2016, PUMA continued to make inroads into becoming the Fastest Sports Brand in the World. The two major football tournaments - Copa America and the UEFA Euro 2016 - on the one side and the further accelerated success of our women’s initiative "The Future is Female" on the other were the dominating factors for us.

With our five sponsored teams as well as our high profile players sporting our new PUMA TRICKS boots and gloves, PUMA achieved great visibility through these events. We have been leveraging this momentum with our key retail partners. Building on the impressive sell-through results of TRICKS during the 2014 world cup, we generated healthy sell-in of TRICKS this year. Many key retailers including Intersport, Dick’s Sporting Goods and Kamo supported them with very visible in-store executions.

The overwhelming reactions to our FENTY PUMA by Rihanna runway show during the New York Fashion Week and especially the social media buzz further strengthened the FENTY footwear launches. The FENTY Trainer and the CREEPER’s new color ways were sold out in days, the Fur Slide in hours or minutes. In a partnership with Kylie Jenner, a key influencer for young women in the US and new PUMA brand ambassador, PUMA has launched another revolutionary silhouette, the FIERCE performance training shoe. All of these products generated great sell-in and sell-out results, which continue to strengthen our relationship with key retailers. This includes Foot Locker’s women-only banner SIX:02, that has decided to dedicate additional space to PUMA shop-in-shops in their stores.

In June, we announced our partnership with New York City Ballet (NYCB), one of the leading dance companies in the world, as their official off-stage active wear partner. Starting in October 2016, a number of dancers from the New York City Ballet will be featured in several PUMA creative and marketing campaigns that will highlight women in sports and culture. In addition, PUMA and New York City Ballet will explore ways for PUMA to support a variety of NYCB initiatives, including the ballet company’s education, audience development and dancer health and wellness efforts.

PUMA strongly believes in the power of sports that improves people's health around the world every day. As we want to make a difference in the lives of people, including the most disadvantaged ones, we have partnered with Right To Play. Right To Play is a global organization, founded by four-time Olympic gold medalist Johann Olav Koss, and uses the transformative power of play to educate and empower children facing adversity. This year PUMA supports Right To Play with a donation and delivery of equipment such as 10,000 footballs to children in need.

Financial Calendar FY 2016

The financial releases and other financial information are available on the Internet at „about.puma.com“.<

Notes to the editors:

• The financial reports are posted on www.about.puma.com.
• PUMA SE stock symbol: 
  Reuters: PUMG.DE, Bloomberg: PUM GY,
  Börse Frankfurt: ISIN: DE0006969603– WKN: 696960

Notes relating to forward-looking statements:

This document contains forward-looking statements about the Company’s future financial status and strategic initiatives. The forward-looking statements are based on the current expectations and assumptions of the management team. These are subject to a certain level of risk and uncertainty including, but not limited to those described above or in other disclosures, in particular in the chapter Risk and Opportunity Management in the Group Management Report. In the event that the expectations and the assumptions do not materialize or unforeseen risks arise, the Company's actual results can differ significantly from expectations. Therefore, we cannot assume responsibility for the correctness of these statements.

2016 Third Quarter Facts

• Sales increase by 11% currency adjusted to € 990 million (+8% reported) with growth across all regions
• Improved sell-­through in own retail and at key retail partners
• Gross profit margin flat at 45.8% despite stronger US-­Dollar
• Moderate increase in OPEX of 4%
• Strong improvement (+47%) in operating result (EBIT) to € 60 million
• Great performance of PUMA athletes at the Rio Olympics with sprint star Usain Bolt dominating the event and winning three gold medals for the third consecutive time

2016 Nine Month Facts

• Sales up 10% currency adjusted to € 2,669 million (+6% reported) based on growth across all regions and product segment
• Slight decrease of gross profit margin to 46.1%, caused by stronger US-­Dollar in 2016 compared to last year
• Improved operating leverage with OPEX increasing by only 3%
• Operating result (EBIT) up 33% to € 114 million
• Earnings per share at € 4.48 compared to € 2.77 last year
• Continued strong visibility of PUMA’s women’s category through FENTY PUMA by Rihanna fashion shows in New York and Paris and launch of the “DO YOU” communication platform with model, actress and activist Cara Delevingne

Bjørn Gulden, Chief Executive Officer of PUMA SE

“We have seen a solid improvement in the sell-­through of our products at retail in the third quarter. New product lines like the Fierce, the Platform, the Ignite Dual and the Fenty lines have shown to be “right” for the consumers and our marketing with personalities like Rihanna, Kylie Jenner, Cara Delevingne and, of course the unbelievable performance of Usain Bolt, have increased our brand heat. More consumers are buying our new products at full price and retailers are therefore more satisfied with us. It is now our job to use this momentum to get more of the right PUMA products on their shelves.

Sales developed a little better than expected, gross margin came in as expected and this combined with a strong discipline on the cost side resulted in a nice improvement in our earnings. With three months to go we feel confident in fulfilling our guidance and do now expect our full-­year EBIT to be in the upper half of the already communicated range of € 115 million to € 125 million.”

Third Quarter 2016

Sales:

PUMA continued on its growth path in the third quarter 2016. Sales increased by 10.7% currency adjusted to € 990.2 million (+8.3% reported). All regions contributed to this growth with EMEA and the Americas being the main drivers. Footwear once again performed particularly well with a currency adjusted increase of 16.4%.

The EMEA region continued its growth, supported by strong demand for footwear products.Sales rose by 11.9% currency adjusted to € 408.6 million (+8.7% reported) with France and Germany being particularly strong.

Sales in the Americas region improved by 12.2% currency adjusted to € 342.9 million (+5.5% reported). Solid growth was delivered by both North and Latin America. However, the weakness of Latin currencies, notably the Argentine Peso, continued to impact the sales development in Euro terms.

The Asia/Pacific (APAC) region achieved sales of € 238.7 million, representing a rise of 6.9% currency adjusted (+11.7% reported). China and India delivered double-­digit growth.

Footwear continued to drive the strongest growth among the three product segments, showing an improvement of sales for the ninth quarter in a row. Sales were up 16.4% currency adjusted (+12.3% reported) and amounted to € 458.8 million, with success coming from the Ignite franchise as well as Fierce and Fenty products within the Running, Training and Sportstyle categories.

Coming in at € 377.4 million, sales in the Apparel segment increased by 10.3% currency adjusted (+8.8% reported). Major gains were achieved in the Sportstyle category supported by our women’s business.

The development of Accessories was impacted by a weaker performance of PUMA’s accessories business in the United States. Sales decreased by 2.4% currency adjusted to € 154.0 million (-­3.2% reported).

Gross Profit Margin and Operating Expenses:

In spite of the ongoing negative currency impact from a stronger US-­Dollar, PUMA managed to maintain the gross profit margin at 45.8%. This was achieved mainly through sourcing improvements, selective price adjustments, and an improved Footwear product mix. The Footwear margin increased by 190 basis points from 41.2% to 43.1%. The Apparel margin decreased from 49.8% to 48.2% and the Accessories margin fell from 49.1% to 48.4%.

Operating Result and Net Earnings:

The operating result (EBIT) went up by 46.7% to € 60.3 million. This is mainly due to the operating leverage as sales grew stronger than operating expenses, while the gross profit margin remained flat.

Net earnings nearly doubled compared to last year´s result coming in at € 39.5 million, representing an increase of 98.0%. This result translates into earnings per share of € 2.64 compared to € 1.34 in the third quarter of 2015.

Nine Months 2016

Sales:

As PUMA was able to keep up the strong momentum seen in the first half-­year 2016, sales for the nine-­month period improved by 10.2% currency adjusted to € 2,668.5 million (+6.4% reported). The main drivers behind this positive development were EMEA and APAC and in segment terms Footwear and Apparel.

The growth dynamic in the EMEA region was particularly high, where sales went up 13.2% currency adjusted to € 1,084.3 million (+9.8% reported). This increase is largely due to the performance of France and the DACH area (Germany, Austria, Switzerland) which achieved a double-­digit growth. Within the EEMEA region, Russia and South Africa performed very well. Apparel achieved major gains, partly driven by the football business.

In the Americas region, both North and Latin America posted a solid upturn in currency adjusted sales, increasing by 7.6% to € 946.6 million. In Euro terms, however, sales grew only by 0.4%, as the weakness of currencies in Latin America, notably in Argentina, continued to have a negative impact on reported sales.

The development of sales in the Asia/Pacific (APAC) region was particularly positively influenced by China, which performed strongly across all distribution channels. The region’s sales improved by 9.3% currency adjusted to € 637.7 million (+10.3% reported).

All product segments performed well in the nine-­month period. Footwear improved by 11.0% currency adjusted to € 1,211.0 million (+5.7% reported). This development was based on strong demand in the Running, Training, Sportstyle and Fundamentals categories.

Apparel delivered the highest growth rate among the three product segments. Sales came in at € 966.6 million, representing an increase of 12.0% currency adjusted or 8.6% in Euro terms. All product categories contributed to this success.

Accessories were up 5.4% currency adjusted to € 491.0 million (+3.8% reported). EMEA and Asia/Pacific showed higher sales in this product segment, while the development was negative in the Americas, caused by the United States.

In the nine-­month period, PUMA generated own and operated retail sales (including eCommerce) of € 551.1 million. This is equivalent to an increase of 11.9% currency adjusted and represents a share of 20.6% of total sales versus last year’s figure of 20.4%. The sales increase is based on a healthy like-­for-­like sales growth, a higher number of retail stores in operation as well as a significant momentum of the eCommerce business.

Gross Profit Margin and Operating Expenses:

The gross profit margin of 46.1% represents a slight decrease of 30 basis points compared to 46.4% in the first nine months of 2015. This is solely due to the negative currency impact on our cost of sales from the stronger US-­Dollar. The negative currency effect was partly offset by sourcing improvements, selective price adjustments and an improved product mix in the Footwear segment. In Footwear, the gross profit margin was up 70 basis points at 42.8% (last year 42.1%), while in the Apparel and Accessories segment, the margins decreased from 50.4% to 49.1% and from 49.6% to 48.1% respectively.

Operating expenses (OPEX) increased only slightly by 3.4% and amounted to € 1,127.9 million. This is the result of intensified marketing activities for the UEFA Euro 2016 and the Olympic Games in Rio, as well as an extended network of own and operated retail stores. All other operating functions managed to keep costs stable.

Operating Result and Net Earnings:

The operating result (EBIT) improved significantly by 32.9% and amounted to € 113.5 million. With sales growing faster than operating expenses, PUMA was able to benefit from operating leverage.

Net earnings improved by 61.5% and came in at € 67.0 million (last year: € 41.5 million).                                                                This result translates into earnings per share of € 4.48 compared to € 2.77 in 2015.

Working Capital

PUMA’s working capital increased by only 2.8% to € 731.2 million despite higher sales and business volumes as well as the extension of the retail store network. Inventories were up 3.7% at € 715.0 million and trade receivables increased by 3.3% to € 584.1 million, underpinning a strong performance of working capital management.

Outlook 2016

With PUMA’s positive performance over the first nine months of 2016, we continue to expect a currency adjusted high single-­digit increase of net sales, a gross profit margin on previous year’s level (45.5%), and an increase of currency adjusted operating expenses in a mid to high single-­digit range for the full-­year. In light of the operating result (EBIT) achieved in the first nine months, we now expect the full-­year EBIT to be within the upper half of the already communicated range of € 115 million to € 125 million.

Brand and Marketing

In July, we unveiled the first PUMA home and away kits for Mexican football club Chivas, officially called Club Deportivo Guadalajara, one of Mexico’s two biggest clubs.

At the Summer Olympics in Rio, PUMA sprint star Usain Bolt accomplished his “Triple Triple” by winning an Olympic Gold medal in each of the three sprinting events. In total, ten Gold, five Silver and nine Bronze medals were the yield of the PUMA equipped Olympic teams of Jamaica, Bahamas, Cuba and Grenada alongside the Track & Field teams of Switzerland, the Dominican Republic and Barbados.

In September, the first and much-­awaited FENTY PUMA by Rihanna collection came into stores worldwide. Later that month, Rihanna presented her Spring/Summer 2017 FENTY PUMA by Rihanna collection at the Paris Fashion Week. This second collection takes inspiration from 18th century France during the time period of Louis XVI and fuses with a street style vibe.

In our Women's category, we launched our campaign “DO YOU”, which aims to inspire confidence in women around the world. The campaign is spearheaded by international model, actress, and activist Cara Delevingne who joined PUMA’s growing list of influential female ambassadors. It features a cross-­category product range from PUMA’s Running and Training and Sportstyle collections.

We also announced a new partnership with Abel Tesfaye also known as The Weeknd as a new Global Brand ambassador and creative collaborator. The Grammy-­winning artist and style icon is the perfect fit to headline PUMA’s latest Sportstyle campaign, ‘Run The Streets’ at the beginning of this month.

In Motorsport, our partnered Formula 1 team MERCEDES AMG PETRONAS won the Constructors’ Championship for the third time in a row. Nico Rosberg is in the pole position to clinch his first world championship crown at the end of the season and is followed by the rest of PUMA-­equipped drivers from Red Bull and Ferrari in the drivers’ standings.

Financial Calendar FY 2017:

February 9, 2017: Financial Results FY 2016
The financial releases and other financial information are available on the Internet at „about.puma.com“.

Notes to the editors:

• The financial reports are posted on www.about.puma.com.
• PUMA SE stock symbol:
  Reuters: PUMG.DE, Bloomberg: PUM GY,
  Börse Frankfurt: ISIN: DE0006969603– WKN: 696960

Notes relating to forward-­looking statements:

This document contains forward-­looking statements about the Company’s future financial status and strategic initiatives. The forward-­looking statements are based on the current expectations and assumptions of the management team. These are subject to a certain level of risk and uncertainty including, but not limited to those described above or in other disclosures, in particular in the chapter Risk and Opportunity Management in the Group Management Report. In the event that the expectations and the assumptions do not materialize or unforeseen risks arise, the Company's actual results can differ significantly from expectations. Therefore, we cannot assume responsibility for the correctness of these statements.

SALES GROWTH ACROSS ALL REGIONS AND PRODUCT SEGMENTS AND IMPROVED OPERATING RESULTS IN FOURTH QUARTER AND  FULL YEAR

2016 Fourth-Quarter Facts

• Sales increase by 10% currency adjusted to € 958 million (+9% reported) with growth across all regions and product segments
• Gross profit margin up 180 basis points at 44.6%
• OPEX increase by 13% caused by higher marketing and retail investments as well as higher sales related variable costs
• Improvement in operating result (EBIT) by 30% to € 14 million
• FENTY PUMA by Rihanna Creeper awarded "Shoe of the Year 2016" by Footwear News in the US

2016 Full-Year Facts

• PUMA’s full-year sales up 10% currency adjusted to € 3,627 million (+7% reported)
• Gross profit margin improved by 20 basis points to 45.7%, despite stronger US Dollar
• Improved operating leverage with OPEX increasing by only 6%
• Operating result (EBIT) up 33% to € 128 million
• Earnings per share increased from € 2.48 last year to € 4.17 in 2016
• Strong improvement in Free Cashflow from € -99 million 2015 to € 50 million 2016
• An increase of the dividend from € 0.50 to € 0.75 per share for the financial year 2016 will be proposed
• Strong performances by PUMA athletes at the UEFA EURO 2016 and Olympic Games in Rio

• Continued strong visibility of PUMA’s women’s category through “FENTY PUMA by Rihanna” - fashion shows and launch of the “DO YOU” communication platform with model, actress and activist Cara Delevingne

Bjørn Gulden, Chief Executive Officer of PUMA SE:

“The fourth quarter developed as expected with solid growth in both sales and EBIT. We have seen a continued increase of interest in our products and brand both from consumers and retailers. The sell-through of our new product launches has been good.

2016 ended as we had hoped with revenue growth in all regions and product segments as well as a significant increase in EBIT and net earnings. The year has confirmed, that our strategy has been right and we will continue to invest in our mission of becoming the Fastest Sports Brand in the World.

We feel confident that we will continue to see revenue growth and a significant increase in earnings again in 2017.”

Fourth Quarter 2016

Sales:

PUMA’s sales growth continued in the fourth quarter 2016, improving by 10.1% currency adjusted to € 958.2 million (+9.0% reported) with positive developments in all regions and product segments.

The EMEA region performed extraordinarily well, reporting a double-digit growth rate of 13.4% currency adjusted to € 298.4 million (+10.4% reported). This was achieved in spite of strong comparable sales last year (Q4 2015 +21% currency adjusted).

In the Americas region, sales increased by 9.9% currency adjusted to € 393.0 million with growth in North- and Latin America. In Euro terms sales grew by 6.7%, as the weakness of currencies in Latin America, notably in Argentina, continued to have a negative impact on reported sales.

The Asia/Pacific (APAC) region performed well with sales increasing by 6.8% currency adjusted to € 266.8 million (+11.1% reported). China was the main driver of this positive development.

Footwear continued to drive the strongest growth among the three product segments, showing an improvement of sales for the tenth quarter in a row. Sales were up 17.6% currency adjusted (+15.3% reported) and amounted to € 416.0 million, with success particularly coming from the Sportstyle and Fundamentals categories.

Apparel showed moderate growth in the quarter with sales increasing by 3.7% currency adjusted to € 366.6 million (+3.3% reported), as sales in Q4 last year were driven by the Euro Cup replica business.

Sales in Accessories improved by 7.5% currency adjusted to € 175.6 million (+7.5% reported), driven by a strong performance of our North American accessory business in the fourth quarter.

Gross Profit Margin and Operating Expenses:

Despite ongoing negative currency impacts from a stronger US Dollar, PUMA managed to improve the gross profit margin in the fourth quarter by 180 basis points to 44.6%. This was achieved mainly by selective price adjustments and lower discounts. In addition, a higher share of own retail sales, which carry a higher margin, had a positive effect on the gross profit margin. The Footwear margin increased by 300 basis points from 38.6% to 41.6%. The Apparel margin was stable at 46.5% and the Accessories margin improved from 43.7% to 47.6%.

Operating expenses (OPEX) increased by 12.6% to € 416.6 million. The increase of operating expenses in the quarter is mainly due to further marketing and retail investments as well as higher sales related variable costs in connection with the growing retail and eCommerce revenues.

Operating Result and Net Earnings:

The operating result (EBIT) grew by 30.2% to € 14.1 million. This development is a result of the increase of sales and the improvement of the gross profit margin in the quarter.

Taxes on income in the fourth quarter showed an income of € 0.4 million (prior year: expense of € -2.8 million) as a consequence of the adjustment of tax provisions, after tax audits for prior years were finalized. The net earnings attributable to non-controlling interests increased from € 11.1 million to € 17.2 million because of the strong business development of our North American joint ventures - distributing accessories in the region -during the fourth quarter.

As a consequence, net earnings came in at € -4.6 million compared to € -4.3 million last year, translating into earnings per share of € -0.31 after € -0.29 in the fourth quarter of 2015.

Full Year 2016

Sales:

In the financial year 2016, PUMA’s sales improved by 10.2% currency adjusted to € 3,626.7 million (+7.1% reported). The currency-adjusted increase was slightly above the sales guidance for the full year 2016, which had anticipated currency adjusted growth to be in the high single-digit range. All regions and product segments contributed to the positive development with Footwear being the main growth driver.

Sales in the EMEA region showed the highest increase, rising by 13.2% currency adjusted to € 1,382.7 million (+9.9% reported), with France and the DACH area (Germany, Austria, Switzerland) having developed particularly well. From a product perspective, all three product segments recorded double-digit growth in the region.

In the Americas region, sales rose by 8.3% currency adjusted to € 1,339.6 million. Both, North- and Latin America contributed to this positive development. In Euro terms sales grew only by 2.2%, as the weakness of currencies in Latin America, notably in Argentina, continued to have a negative impact on reported sales.

The Asia/Pacific region was also a strong driver of the overall growth of PUMA in 2016. Sales were up by 8.5% currency adjusted to € 904.5 million (+10.5% reported). China with a double-digit increase and India with a strong momentum supported the growth in the region.

Sales in PUMA's Footwear segment amounted to € 1,627.0 million, representing an improvement of 12.6% currency adjusted (+8.0% reported). The Running, Sportstyle and Fundamentals categories all achieved major gains.

Apparel sales grew by 9.6% currency adjusted to € 1,333.2 million (+7.1% reported) with a positive development in all product categories except Motorsport.

Accessories sales rose by 5.9% currency adjusted to € 666.5 million (+4.7% reported) thanks to a continued strong socks and bodywear business, in spite of a flattish golf hardware business.

Including eCommerce, PUMA's own and operated retail sales increased by 12.5% currency adjusted to € 794.3 million. This represents a share of 21.9% of total sales in 2016 (21.4% in 2015). The reasons for this rise are a like-for-like sales growth in our retail stores and the extension of our retail store network, as well as a strongly growing eCommerce business.

Gross Profit Margin and Operating Expenses:

The gross profit margin improved 20 basis points from 45.5% last year to 45.7% for the full year 2016. Selective price adjustments and sourcing improvements were the main drivers that more than offset the negative currency impact from the stronger US Dollar in 2016 compared to 2015. This was especially true in the Footwear segment where margins increased from 41.2% to 42.5%. However, Apparel margins eased from 49.3% to 48.4% and the Accessories margins declined slightly from 48.0% to 47.9% in 2016.

Operating expenses (OPEX) increased by 5.7% and amounted to € 1,544.5 million in 2016. The increase is mainly due to additional marketing activities as well as investments in our own retail store network and IT-infrastructure. Other operating functions managed to keep costs stable.

Operating Result and Net Earnings:

The operating result (EBIT) improved by 32.6% from € 96.3 million to € 127.6 million. This result is slightly above our EBIT guidance for the full year 2016 of a range between
€ 115 million and € 125 million. With sales growing faster than operating expenses, PUMA was able to benefit from operating leverage, while in addition the gross profit margin improved slightly.

The financial result improved from € -11,2 million last year to € -8,7 million this year due to lower interest payments and lower expenses from currency conversion.

The tax rate for the full year 2016 came in at 25.7% compared to 27.5% last year. The adjustment of tax provisions, after tax audits for prior years were finalized, contributed to the decrease of the tax rate.

Net earnings improved by 68.0% and came in at € 62.4 million (last year: € 37.1 million). This result translates into earnings per share of € 4.17 compared to € 2.48 in 2015.

Working Capital

Despite higher sales and business volumes as well as a higher number of owned and operated retail stores, PUMA’s working capital increased only slightly by 0.7% to € 536.6 million. This development underpins the strong performance of our working capital management. Inventories were up 9.4% at € 718.9 million in order to ensure product availability and to support further growth as well as to meet the increased need for products due to our additional retail stores. Trade receivables rose moderately by 3.3% to € 499.2 million and trade payables were up 11.7% to € 580.6 million.

Cashflow

The free cash flow before acquisitions improved significantly by € 154.8 million from a cash outflow of € -98.3 million last year to a cash inflow of € 56.5 million in 2016. This achievement is a result of higher earnings before taxes (EBT) combined with an improved working capital development, in spite of the extended business volume. As of December 31, 2016, PUMA’s cash position amounted to € 326.7 million compared to € 338.8 million at the balance sheet date last year.

Dividend proposal of € 0.75

Based on PUMA’s positive business development in 2016 with an improvement of profitability and cashflow, the Administrative Board will propose a € 0.25 increase of the dividend to € 0.75 per share for the financial year 2016 at the Annual General Meeting on April 12, 2017.

Brand and Strategy Update

The results achieved in 2016 show that PUMA is starting to gain momentum: Throughout the year, we focused and invested in events, products, and campaigns that took us yet again a step closer to becoming the Fastest Sports Brand in the World. For us, 2016 was particularly exciting and characterized by the following major highlights: The football tournaments Copa América and UEFA Euro 2016, the Olympic Games in Rio and the fantastic development of our women’s category.In our Teamsport category, PUMA’s five participating teams in the UEFA Euro 2016 in France secured an on-field presence of almost 40% across all matches. A major highlight was France’s Antoine Griezmann, who was voted ‘Player of the Tournament’ by UEFA after being the top scorer. Stars like PUMA player Olivier Giroud, who ranked third in the tournament's scoring table and Portugal’s Rui Patrício, who was voted the Goalkeeper of the Tournament, sported PUMA’s yellow-pink "Tricks" boots on the pitch.

Last week, PUMA player Adam Lallana of Liverpool F.C. was named 2016 England Player of the Year following a vote among members of the England Supporters club.Last Sunday, PUMA-sponsored Cameroon beat Egypt to win their fifth Africa Cup of Nations football title with a fabulous goal in the 89th minute of the final for a 2-1 come-from-behind victory

In our Running category, a memorable event for PUMA were last summer's Olympics in Rio, where PUMA sprint star Usain Bolt again showed a spectacular, world-class performance by winning an Olympic Gold medal in each of the three sprinting events. Ahead of the 16th edition of the IAAF Track and Field World Championships scheduled to be held in London in summer this year, we are excited to see continued amazing performances of the Fastest Man in the world.

In our Motorsport category, Nico Rosberg was crowned F1 champion, while PUMA-partnered teams MERCEDES AMG PETRONAS, Red Bull and Scuderia Ferrari claimed the first three places in the Constructors’ Championship. Another highlight was set by our partner BMW Motorsport and their driver Marco Wittmann, who clinched the 2016 DTM Championship for the second time after 2014.

Our iconic success style, the "FENTY PUMA by Rihanna" Creeper, was repeatedly sold out worldwide within mere hours of hitting the stores as soon as we launched new colourways throughout the year. The Creeper has demonstrated again and again that it is currently the hottest piece of footwear around and has consequently been named “the only choice for the 2016 Shoe of the Year” by Footwear News.

In terms of strategy, we have continued to make progress along our five key priorities: creating brand heat for PUMA as the Fastest Sports Brand in the World, further improving the product engine with a strong pipeline of exciting and commercial products, optimizing PUMA’s distribution quality through stronger sell-through with key retail partners. Furthermore we enhanced our organizational speed and business processes as well as strengthened PUMA’s women’s business. These priorities will be at the center of our strategy going forward. While we still have a lot of work ahead of us, we feel that 2016 took us a big step forward within each of these areas.

We have further strengthened our brand heat by leveraging our brand ambassadors and cultivating the hype in social media. We are proud to have long-standing partnerships with some of the world’s greatest athletes, such as the Olympic legend Usain Bolt, who has been with PUMA for 15 years. Additionally, we have new relationships with up-and-coming stars and talents like the charismatic Olympic Silver-and Bronze-medalist André De Grasse, the one-of-a-kind Cara Delevingne, the R&B star and style icon The Weeknd, and of course, Rihanna who made a major impact in 2016.

On the product side, we introduced a number of key styles. The distinctive PUMA Fierce has been an instant hit in terms of distribution, media coverage and most importantly sales. Other new key footwear styles were the performance shoe IGNITE Dual and the IGNITE Evoknit, a style for Street Running that comes with a form-fitting, mid-height knitted upper. Our FENTY collection, that features apparel and footwear, was very well received by the press, retail partners and our consumers. Independent research has shown that we have gained market shares in most geographies and channels, showing that PUMA products are again resonating well with consumers, which was also echoed by our retail partners.

To improve the quality of distribution, we continued to strengthen our relationships with key strategic accounts and built new partnerships with strong retailers in both established and emerging markets. One of the best examples is our long-standing strong relationship with Foot Locker in North America. For several years, we have now rolled out our jointly developed retail concept “PUMA Lab”. This has helped to lift product sell-through well beyond the “PUMA Lab” doors, especially in Foot Locker's women-only banner Six:02, where PUMA sales more than doubled in 2016. PUMA has also gained traction with other important customers in the US, and also in Europe, where PUMA returned to double-digit growth rates in many markets. In China, our retail partners such as Belle and the YY Group opened around 200 additional PUMA doors in 2016.

PUMA’s owned and operated retail sales developed quite strongly throughout the year based on a like-for-like sales growth, an increased number of own retail stores in operation, as well as significant momentum in our eCommerce business. We also continued our worldwide roll-out of the “Forever Faster” store layout, which contributed to this positive development. We will further use this momentum with our most important accounts, own retail stores and eCommerce across all geographies in 2017 to drive our sales growth.

The improvements in systems, processes and organizational speed over the last two years, led to even more flexibility in our supply chain in 2016. A standardized global IT foundation allows for faster and better communication. We have relocated employees closer to our suppliers' production sites, increased local-for-local production in countries such as India and Mexico and moved into a new highly-automated warehouse in the United States. This all will ensure faster lead times for key markets in line with our strategy of being Forever Faster.

Our Women's business received a lot of attention in 2016. Building on PUMA’s fashion credibility and sports authenticity, as well as profound understanding of the modern female athletic consumer, we have positioned PUMA to address the segment “where the gym meets the runway”. Women worldwide are more and more participating in sports, while taking inspiration from athletic wear for their everyday wardrobe. In 2016, PUMA successfully introduced cross-category collections by merging sports and fashion. With our “DO YOU” campaign, which aims to inspire confidence in women around the world, we are changing the way we address the female consumer. In addition, we are collaborating with a number of famous female brand ambassadors such as Rihanna, Kylie Jenner, Cara Delevingne and the New York City Ballet to tell a powerful story. The reactions to our "FENTY PUMA by Rihanna" runway shows during the New York and Paris Fashion Weeks have been overwhelmingly positive and have created major social media buzz. Our women-specific collections are among the best performers in terms of both sell-in and sell-through. Many major retailers provided additional space for our female collections. In many accounts, the success of our women’s line was actually a door opener to expand our shelf space with men’s and kids styles.

Outlook 2017

Based on the development in 2016, where we saw ongoing sales growth and an improvement of profitability, we are confident that PUMA can continue the momentum that it has gained as a brand. In 2017, we will further invest in marketing and continue our Forever Faster brand communication to increase our brand heat by leveraging our ambassadors and to position PUMA as the fastest sports brand in the world. Our global marketing activities will again be centered around athletes, including the World’s Fastest Man and sports icon Usain Bolt, star strikers like Sergio Agüero and Antoine Griezmann, Golfstar Rickie Fowler, Arsenal Football Club, Borussia Dortmund as well as global entertainment assets like multi-platinum recording artist, designer and entrepreneur Rihanna, Kylie Jenner, Cara Delevingne and the R&B star and style icon The Weeknd.

We will continue to work very closely with our retail partners. With our improved product offering including recently launched styles such as the Fierce, Basket Heart, IGNITE Dual and IGNITE Evoknit as well as our FENTY collection we will continue to work hard to get more of the right PUMA products on the shelves of our retail partners. In combination with further investments in our own retail and eCommerce business we will support our direct to consumer business. This should enable us to attract new customers and to increase our market share in most geographies as well as to improve our sell-through across all product categories.

For the full year 2017 we expect that currency-adjusted net sales will increase at a high single-digit rate. The gross profit margin is forecasted to improve to approximately 46.0% (2016: 45.7%). Operating expenses (OPEX) are expected to increase at a mid to high single-digit rate, as PUMA will continue to invest in marketing, in the modernization and expansion of the owned and operated retail store network and in IT-infrastructure. At the same time, management will continue to place a strong emphasis on strict control of other operating costs.

At the current exchange rate levels, PUMA’s management expects that the operating result (EBIT) will improve significantly in 2017, thanks to operating leverage, as sales will increase stronger than OPEX, combined with a slightly improved gross profit margin. EBIT for the full year 2017 is therefore expected to come in between € 170 million and € 190 million. Net earnings will also continue to improve significantly in 2017.

PUMA’s management is optimistic that 2017 is another important year with great opportunities and that PUMA is well positioned to carry the brand’s positive momentum into 2017 and beyond.

Financial Calendar FY 2017

The financial releases and other financial information are available on the Internet at „about.puma.com“.

Notes to the editors:

• The financial reports are posted on about.puma.com.
• PUMA SE stock symbol: 

Reuters: PUMG.DE, Bloomberg: PUM GY,
Börse Frankfurt: ISIN: DE0006969603– WKN: 696960

NOTES RELATING TO FORWARD-LOOKING STATEMENTS: 

This document contains forward-looking statements about the Company’s future financial status and strategic initiatives. The forward-looking statements are based on the current expectations and assumptions of the management team. These are subject to a certain level of risk and uncertainty including, but not limited to those described above or in other disclosures, in particular in the chapter Risk and Opportunity Management in the Group Management Report. In the event that the expectations and the assumptions do not materialize or unforeseen risks arise, the Company's actual results can differ significantly from expectations. Therefore, we cannot assume responsibility for the correctness of these statements.