Herzogenaurach, GERMANY - January 11, 2018
PUMA welcomes planned Change in Ownership Structure

Kering’s proposal to reduce its stake would enhance PUMA’s share free float, support business strategy and increase attractiveness of shares

PUMA SE welcomes the planned proposal of its majority shareholder Kering SA to distribute part of its PUMA shares to Kering’s shareholders (dividend in kind) and thus reducing its stake in the sports company. This would lead to a greater free float of PUMA stocks, providing investors an enhanced possibility to invest in PUMA, and allowing the company to reaffirm its business strategy.

We are very pleased that Kering has proposed this way to reduce its stake in PUMA. It would allow us to continue with our current business strategy that has started to show good results,” said Bjørn Gulden, CEO of PUMA. “We would be able to carry on to invest in becoming the Fastest Sports Brand in the world, create value for retailers, improve performance for athletes and excite consumers.”

French luxury group Kering, owner of approximately 86% of PUMA’s total share capital, announced earlier today that it will propose to its Annual General Meeting to distribute approximately 70% of the total share capital of PUMA to Kering’s shareholders, thus reducing its shareholding in PUMA to approximately 16%. As a consequence, Kering’s largest shareholder Artémis SA* would receive approximately 29% of PUMA’s share capital and would become a direct and long-term shareholder. The transaction enables Kering to focus on its core luxury business in high-end fashion, leather goods as well as jewelry and watches.

The transaction would increase PUMA’s free float from currently 14% to approximately 55%. “PUMA would become much more attractive for investors as our shares would have a substantially higher free float and larger trading volumes. Kering and Artémis, however, would remain strong partners and shareholders, which proves that they believe in our strategy and PUMA’s future success,” said Bjørn Gulden.

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

*Artémis is the holding company of the Pinault family and the controlling shareholder of Kering.

Photo Credits: Conné/ PUMA
Herzogenaurach, germany - February 9, 2018
PUMA PLANS TO DISTRIBUTE A ONE-OFF DIVIDEND OF 12.50 EUR PER SHARE FOR THE FINANCIAL YEAR 2017

DISCLOSURE OF AN INSIDE INFORMATION ACCORDING TO ARTICLE 17 MARKET ABUSE REGULATION

PUMA SE (ISIN: DE00069696303 WKN: 696960)
PUMA WAY 1, D-91074 Herzogenaurach

The Administrative Board and the Managing Directors of PUMA SE intend to propose to the Annual General Meeting of PUMA SE on 12 April 2018 the distribution of a one-off dividend of 12.50 EUR per share for the financial year 2017.

Photo Credits: Conné/ PUMA
Herzogenaurach, germany - March 20, 2018
PUMA COMMUNICATES MID-TERM FINANCIAL OUTLOOK AND DIVIDEND POLICY

DISCLOSURE OF AN INSIDE INFORMATION ACCORDING TO ARTICLE 17 MARKET ABUSE REGULATION

PUMA SE (ISIN: DE00069696303 WKN: 696960)
PUMA WAY 1, D-91074 Herzogenaurach

PUMA SE holds its Capital Markets Day today and communicates the following mid-term (2018-2022) financial outlook: PUMA expects the currency-adjusted consolidated net sales to grow around 10% on average per year until 2022. The EBIT margin is expected to reach a level of around 10% of consolidated net sales by 2022 at the latest.

In addition, PUMA will propose to the Annual General Meeting a distribution of a dividend of between 25% and 35% of the consolidated net earnings, starting with the dividend payout in 2019 for the financial year 2018.

 

Herzogenaurach, germany - April 24, 2018
STRONG SALES AND EBIT GROWTH IN THE FIRST QUARTER

PUMA SLIGHTLY RAISES FULL-YEAR GUIDANCE FOR 2018

2018 First-Quarter Facts

  • Sales increase of 21.5% currency-adjusted to € 1,131 million (+12.5% reported) with double-digit growth in all regions and product segments
    Gross profit margin up by 110 basis points to 48.2%
  • Operating expenses (OPEX) increase only 7.5%, further improving our operating leverage
  • Operating result (EBIT) improves significantly to € 112 million (last year: € 70 million)
  • The highly exclusive Phenom Lux, the first shoe designed by Selena Gomez and released in limited quantities, will benefit the Lupus Research Alliance
  • PUMA will be offical sponsor of AC Milan (season 2018/19) and of Brazilian top club Sao Paulo Palmeiras (season 2019)
  • PUMA signs long-term agreements with World Cup qualifiers Senegalese and Serbian Football Associations

Bjørn Gulden, Chief Executive Officer of PUMA SE:

“We started the year with both first-quarter sales and profitability (EBIT) coming in stronger than we had expected. The double-digit sales growth in all regions and product segments, including an exceptionally high growth in Asia, led to a very strong 21.5% organic sales increase. Operating result even grew by 60% to € 112 million due to higher sales, an improvement in our gross margin of 110 basis points and a tight OPEX management. 

Because of an uncertain business environment caused by volatile currency rates and the difficult economic trade environment, we raised our outlook for the full year only slightly. We now expect our sales to grow 10% to 12% in local currency (previous 10%) and EBIT to come in between € 310 to € 330 million (previous € 305 to € 325 million).”

 

Sales Development:

First Quarter 2018

PUMA's sales growth continued in the first quarter of 2018. Sales increased by 21.5% currency-adjusted to € 1,131.1 million (+12.5% reported) compared to € 1,005.1 million last year. Due to the strength of the Euro against all other major currencies during the first quarter 2018, there is a 9% negative difference between sales growth in Euro and constant-currency terms.

All regions and product segments supported the sales growth with a currency-adjusted double-digit increase. Particularly our Asia/ Pacific region, driven by China, achieved a strong sales growth of 34.8% in the first quarter. Footwear continued to be the main growth driver followed by Apparel and Accessories. Running and Training as well as Sportstyle were the categories with the strongest growth rates.

The gross profit margin improved by 110 basis points from 47.1% to 48.2%. The increase came from a favourable regional sales mix, higher sales of new products with a better margin and further sourcing improvements.

Operating expenses (OPEX) grew by 7.5% to € 437.3 million in the first quarter. The increase was mainly caused by higher marketing and retail investments as well as higher sales-related variable costs.

The operating result (EBIT) increased by 59.9% from € 70.2 million to € 112.2 million in the first quarter 2018 due to a strong sales growth, a higher gross profit margin and an improved operating leverage. This corresponds to an EBIT-margin of 9.9% compared to 7.0% in the first quarter last year.

Net earnings went up by 35.8% to € 67.4 million (last year: € 49.6 million). This translates into earnings per share of € 4.51 compared to € 3.32 in the first quarter 2017.

 

Working Capital

Strong currency effects and our continued focus on working capital management led to a decrease of working capital of 1.3% to € 791.0 million. Omitting these currency impacts, working capital would have grown by approx. 10%, lower than our growth in business. Inventories rose only slightly by 1.3% to € 760.4 million and trade receivables grew by only 5.8% to € 685.0 million. Trade payables decreased by 8.0% to € 471.4 million.

 

Outlook 2018

The first quarter saw a strong increase in sales and profitability, but several uncertainties in our business environment have recently developed. This includes adverse and volatile currency developments, political instabilities as well as the uncertain trade environment between the USA and China. Therefore, we adjusted our guidance for the full year 2018 only slightly. PUMA now expects that currency-adjusted sales will increase between 10% and 12% (previous guidance: currency-adjusted increase by approximately 10%). The operating result (EBIT) is now anticipated to come in between € 310 million and € 330 million (previous guidance: between € 305 million and € 325 million). In line with the previous guidance, the Management still expects that net earnings will improve significantly in 2018.

Rounding differences may be observed in the percentage and numerical values expressed in millions of Euro since the underlying calculations are always based on thousands of Euro.

Rounding differences may be observed in the percentage and numerical values expressed in millions of Euro since the underlying calculations are always based on thousands of Euro.

Financial Calendar FY 2018

February 12, 2018Financial Results FY 2017
April 12, 2018Annual General Meeting
April 24, 2018Quarterly Statement Q1 2018
July 26, 2018Interim Report Q2 2018
October 23, 2018Quarterly Statement Q3 2018


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.

Herzogenaurach, GERMANY - July 26, 2018
Strong Quarter with 15% growth in sales and 33% growth in EBIT

PUMA confirms EBIT target for the full year 2018

2018 SECOND QUARTER FACTS

  • Sales increase by 15% currency-adjusted to € 1,049 million (+8% reported) with double-digit growth in all regions and product segments
  • Gross profit margin improves to 48.6% mainly due to more sales of new products carrying a higher margin and positive currency effects
  • Operating expenses (OPEX) increase 11% due to higher sales related variable costs, higher marketing and retail investments
  • Operating result (EBIT) up by 33% to € 58 million (last year: € 43 million)
  • PUMA share included in MDAX
  • Governance structure of PUMA SE changed from monistic SE to dualistic SE
  • Long-term partnership with Belgian football star Romelu Lukaku announced
  • Antoine Griezmann and Lukaku claim second and third Top Scorer rank at World Cup
  • PUMA announces re-entry into Basketball category

2018 HALF-YEAR FACTS

  • Sales increase by 18% currency adjusted to € 2,180 million; reported growth is only 10.5% due to the negative impact from currency translation
  • Gross profit margin up 160 basis points at 48.4%
  • Operating expenses (OPEX) increase 9% related to intensified marketing activities, higher sales related variable costs and higher retail investments
  • Operating result (EBIT) improves by 50% from € 114 million to € 170 million
  • Net earnings increase from € 71.5 million last year to € 98.5 million and earnings per share increase from € 4.79 last year to € 6.59 respectively
  • Women’s category continues successful “Do You” campaign

BJØRN GULDEN, CHIEF EXECUTIVE OFFICER OF PUMA SE:

“The second quarter developed positively for us with sales growing organically 15% and EBIT increasing 33%. All regions and all product divisions posted double digit organic growth. The continued strength of the Euro gave us headwind in reported sales, but along with other currency effects, this also impacted our gross margin positively. The first six months of the year showed major shifts in product trends and consumer demand, especially for footwear. But we feel that our “fast attitude” and quick reaction time allowed us to continue our growth. We got very positive feedback to our plans of re-entering the Basketball category and both - the announcements of our new NBA players and the revelation of the product - were well received from retailers and basketball fans. The World Cup in Russia was a good event for us with PUMA players Antoine Griezmann and Romelu Lukaku making it almost to the top of the scorer list in second and third place. The launches of the collections for our new top clubs AC Milan, Olympique de Marseille and Borussia Mönchengladbach were further highlights and have shown our commitment to football. Despite the changes in product trends and the uncertain business environment caused by volatile currency rates and difficult global trade environment, we feel confident that we will reach our full-year EBIT target between €310 million and € 330 million which is a growth of around 30%.”

Second Quarter 2018

PUMA's sales growth continued in the second quarter of 2018. Sales rose by 15.0% currency-adjusted to € 1,049.2 million. All regions contributed with double-digit increases. Footwear continued to be the main growth driver and Apparel and Accessories also grew at a double-digit rate. However, currency translation effects due to the strength of the Euro against most other currencies negatively impacted the sales development in reported terms (+8.3%).

The gross profit margin improved to 48.6% in the second quarter (last year: 46.5%). The increase is mainly related to more sales of new products with a higher margin, further sourcing improvements and positive currency effects.

Operating expenses (OPEX) rose by 11.1% to € 456.3 million in the second quarter. The increase of operating expenses is due to further marketing activities and higher sales related variable costs based on increased sales volumes and higher retail investments related to the increase of our store count.

The operating result (EBIT) increased from € 43.4 million last year to € 57.6 million due to a strong sales growth combined with an improved gross profit margin.

Net earnings increased from € 21.9 million to € 31.1 million and earnings per share were up from € 1.46 in the second quarter last year to € 2.08 correspondingly.

First Half-Year 2018

Sales for the first half-year 2018 were up by 18.3% currency adjusted to € 2,180.3 million. All regions showed double-digit growth with Footwear being the main growth driver. The strong Euro against most other currencies significantly impacted our reported sales growth, that amounted to 10.5% in the first half of 2018.

Including eCommerce, PUMA's own and operated retail sales increased by 23.7% currency adjusted to € 490.0 million. This represented a share of 22.5% of total sales for the first half of 2018 (21.8% in the previous year). The reasons for the rise are a like-for-like sales growth in our own retail stores, the extension of our retail store network and a continued strong growth of our eCommerce business.

The gross profit margin improved by 160 basis points from 46.8% to 48.4% in the first half of 2018. The increase came mainly from more sales of new products with a higher margin and further sourcing improvements. In addition, positive currency effects materialized in the second quarter.

Operating expenses (OPEX) increased 9.3% and amounted to € 893.7 million. The increase was driven by higher sales related variable costs, intensified marketing activities and investments in the refurbishment and expansion of our own retail store network.

The operating result (EBIT) grew by 49.6% from € 113.6 million last year to € 169.8 million in the first half of 2018 due to a strong sales growth and a higher gross profit margin. This corresponds to an EBIT-margin of 7.8% compared to 5.8% in the first half last year.

Net earnings improved by 37.8% and came in at € 98.5 million (last year: € 71.5 million). This translates into earnings per share of € 6.59 compared to € 4.79 in the first half of 2017.

Working Capital

Currency effects and our continued focus on working capital management led to a decrease of working capital of 2.1% to € 685.2 million. Without these currency effects, working capital would have increased by approximately 6%, which is lower than the growth in our business. Inventories were up 4.7% at € 890.5 million and trade receivables grew by 12.8% to € 633.6 million. On the liabilities side, trade payables and other current liabilities were up by 16.2% to a total of € 1,026.8 million.

Cashflow

As a result of the increase in earnings before taxes (EBT) and the positive working capital development, the free cash flow improved from € -117.9 million to € -103.3 million in the first half of 2018. Cash and cash equivalents increased, as did our bank liabilities due to the dividend payment (€ 186.8 million) made in the second quarter. As a result, our net cash position declined to € 88.8 million (last year: € 152.4 million).

Outlook 2018

Our full-year guidance for EBIT remains unchanged and we continue to expect the operating result to come in between € 310 million and € 330 million. This is now the combined effect of a currency-adjusted increase of net sales between 12% and 14% (previous guidance: between 10% and 12%), a gross profit margin improvement of approximately 100 basis points, and a high single-digit rate increase in OPEX related to additional investments in sports marketing and higher sales related variable costs. Management still expects that net earnings will improve significantly in 2018.

Change of Governance Structure

Following the distribution of approximately 70% of the PUMA shares by Kering S.A. to its shareholders, PUMA’s free float has increased from approximately 14% to 55%. The distribution took place on May 16th and was accompanied by investor communication, including road shows and a capital markets day, on PUMA’s side. The feedback from the financial community confirms the confidence into PUMA’s strategy and opportunities.

PUMA’s Annual General Meeting resolved on April 12, 2018 to replace the existing monistic management system of the Company with the dualistic management system and to amend the Articles of Association accordingly. The dualistic management system consists of the Management Board (Vorstand) as the management body and the Supervisory Board (Aufsichtsrat) as the supervisory body. The changes to the Articles of Association were entered into the Commercial Register of the Local Court in Fürth on July 9, 2018. Accordingly, the change in the governance structure became effective on that day. The Management Board consists of Bjørn Gulden (CEO), Michael Lämmermann (CFO) and Lars Sørensen (COO). The Supervisory Board consists of Jean-Francois Palus (Chairman), Jean-Marc Duplaix, Béatrice Lazat, Thore Ohlsson elected by the shareholders and Martin Köppel as well as Bernd Illig elected by the employees.

Brand and Strategy Update

Thanks to our partnered athletes and teams as well as our other brand ambassadors, PUMA successfully strengthened both its sports and lifestyle positioning in the first half of 2018.

A major highlight was the announcement of PUMA’s re-entry into the Basketball category. Jay-Z has taken the role of Creative Director for PUMA Basketball. In this capacity, he will be overseeing the creative strategy, creative marketing, and product design for all basketball-related products. Marvin Bagley, Deandre Ayton, Zhaire Smith, Michael Porter Jr. and Rudy Gay are the first NBA players to wear performance PUMA basketball shoes on court in 20 years. In addition to a clear commitment to performance on the court, PUMA will leverage its credibility in the cultural environment around basketball, which is getting increasing attention of American consumers. Our re-entry into the Basektball category is clearly a commitment to the North American market and a building block to strengthening our business also in other performance categories.

In Football, all eyes were on the FIFA World Cup 2018 in Russia. Our four national teams - Uruguay, Switzerland, Serbia and Senegal – along with a variety of outstanding individual players ensured a high visibility of the PUMA brand during the tournament. Half of our partnered teams reached the second stage, while two out of the top three scorers of the tournament, Antoine Griezmann (2nd) and Romelu Lukaku (3rd), are PUMA players. Griezmann, who led the French team to victory with his goal, was named “FIFA Man of the Match” in the World Cup final. Together with Olivier Giroud and Belgian striker Romelu Lukaku, Griezmann ensured a high visibility of our brand in the final matches of the competition. Our players wore PUMA’s latest technologies, the PUMA FUTURE and PUMA ONE, in customized editions.

In club football, the end of the 2017/18 season was marked by excellent performances of our players on the pitch. All goals of the UEFA Europa League final were scored by PUMA players, as Griezmann and Gabi shot the three goals to Atlético Madrid’s victory. In Mexico, PUMA-partnered team Santos Laguna won the Liga MX Clausura, the closing tournament of the top level Mexican football league.

With Olympique de Marseille, A.C. Milan, Borussia Möchengladbach and São Paulo football club Palmeiras joining the roster of the brand’s prestigious football clubs, PUMA will strengthen its position in international football for the upcoming seasons. The 2018/19 jerseys of the newly signed clubs have just been revealed and received positive fan and media feedback.

In Running and Track & Field, our sponsored athletes impressed with world class performances. The 19-year old Cuban Juan Miguel Echevarria took the first place at the Stockholm Diamond League Meeting with his incredible long jump of 8.83m, which was chosen as the “2018 Season Highlight” by the IAAF. At the XXI Commonwealth Games, PUMA athletes won an impressive total of eleven medals. Olympic and World Championship silver medalist Will Claye won the men’s Triple Jump by setting a new world-leading mark with 17.43m at the World Indoor Championships in Birmingham. Earlier this year, we enlarged our portfolio of federations by signing a long-term partnership with the Norwegian Athletic Federation. Furthermore, PUMA is proud to have two new top athletes joining its roster: French sprinter and European record holder in 100m Jimmy Vicaut and Italian high jumper Gianmarco Tamberi.

In Motorsport, our three partnered F1 Teams MERCEDES AMG PETRONAS, Scuderia FERRARI and RED BULL RACING continue to dominate in Formula One, being currently ranked among the top three positions, both in the drivers’ and the constructors’ championships.

Our strategy has continued to focus on our five priorities: Increasing brand heat, offering a competitive product range, proposing a leading offer for women, improving the quality of distribution and strengthening our organizational infrastructure. We feel that PUMA is on the right track as our strategy, marketing and products are starting to show results. This has been once again confirmed by improved financial results, increased sell-through performance and the continued positive feedback from our retail partners.

Working with the right influencers and letting them communicate on behalf of our brand has become an essential part of our strategy: We have contracted new athletes, cultural icons and influencers, who have helped to further fuel PUMA’s brand heat, such as Selena Gomez, the most followed person on Instagram. Selena has been working alongside PUMA's design team to create exciting products for our female consumers.

Our Women’s category continued our successful “Do You” campaign with its powerful ambassadors, including Cara Delevingne and the dancers of the New York City Ballet. Key styles behind our women’s footwear business were the training shoes PHENOM, MUSE and MUSE ECHO, while the newly launched DEFY showed promising first results.

Four-time Formula One World Champion Lewis Hamilton embodies the Men’s training proposition “24/7”. With this product line, PUMA has redefined its performance philosophy, offering products that perform everywhere from the gym to the street – 24/7. As part of this collection, PUMA just launched the training shoe Mantra FUSEFIT.

Another footwear success was the recently launched THUNDER, which won the hearts of the fashion-forward crowd with its disruptive design, and its bulky, unapologetic look. The first two product drops sold out within hours.

Quality of distribution remains a focus for PUMA. We continue to give high priority to the benefit of our retail partners. We work hard every day to ensure that our contribution to their business is positive and further improving. Feedback from our retail patners continues to be good. Retailers in most channels have started to dedicate more shelf space to PUMA, allowing for our business to be based on a broader selection of styles.

We have also continued to improve our organizational structure and infrastructure. One aspect with high visibility is the completion of our extended headquarters building in Herzogenaurach, that now hosts more than 1,000 employees together under one roof in a state of the art facility. This not only allows for faster communication and better alignment, but also adds to our great team spirit.

Herzogenaurach, germany - october 25, 2018
Strong Sales and EBIT growth continues in the third Quarter

PUMA slightly adapts full-year guidance for 2018

2018 THIRD-QUARTER FACTS

  • Sales increase by 14% currency-adjusted to € 1,242 million (+11% reported) with double-digit growth in the Americas and Asia/Pacific regions
  • Gross profit margin improves to 49.6% 
  • Operating expenses (OPEX) increase by 11% due to higher sales related variable costs and higher retail investments
  • Operating result (EBIT) improves by 28% to € 130 million (last year: € 101 million) and EBIT-margin rises to 10.5% (last year: 9.0%) 
  • Successful US pre-launch of Basketball in late September
  • PUMA signs supermodel Adriana Lima as women's training ambassador
  • PUMA adds international star-players to its roster, including Barcelona and Uruguay striker Luis Suárez, Axel Witsel (Belgian national team and Borussia Dortmund) and Dejan Lovren (Croatian national team and FC Liverpool)

2018 NINE-MONTH FACTS

  • Sales increase by 17% currency adjusted to € 3,422 million (+11% reported) with double-digit growth in all regions and product segments
  • Gross profit margin up by 150 basis points to 48.8% 
  • Operating expenses (OPEX) increase 10% related to intensified marketing activities, higher sales related variable costs and higher retail investments 
  • Operating result (EBIT) improves by 40% from € 215 million to € 300 million and EBIT-margin increases from 6.9% to 8.8% 
  • Net earnings rise from € 134 million last year to € 176 million and earnings per share increase from € 8.94 last year to € 11.77 respectively
  • Strong new style platforms Thunder and RS-0 established in the “chunky/ ugly shoe” category

Bjørn Gulden, Chief Executive Officer of PUMA SE: 
"The third quarter ended a little stronger than we had expected with sales growing organically by 14% to €1,242 Million and EBIT increasing by 28% to €130 Million. This growth was achieved by a double-digit increase in both Americas and Asia/Pacific and high-single digit growth in EMEA. This improvement was further strengthened by a very positive development in Apparel, which grew 27% in the quarter.
Although we saw very negative currency impacts in Turkey and Argentina, overall we experienced less headwind from currencies in sales than in previous quarters.
We still see large shifts in product trends and consumer demand, but feel we have reacted fast enough to continue our growth.
The prelaunch of Basketball for North America at the end of the quarter created a lot of 'noise' and although it is very early days, the sell-through of our first shoe model has been very positive. This investment in Performance Basketball and the “Culture” around Basketball is a strong commitment to both the performance and the sportstyle business in the North American market. 
Given the slightly stronger than expected third quarter and despite the uncertain business environment, with volatile currencies and an uncertain global trade environment, we now see our full-year organic sales growth between 14% and 16% and our full-year EBIT between €325 Million and € 335 million, which is a growth of at least 32% compared with last year."

Third Quarter 2018

PUMA's sales growth continued in the third quarter of 2018. Sales increased by 13.9% currency-adjusted to € 1,241.7 million (+10.7% reported). The Americas and Asia/Pacific regions contributed with double-digit increases, while growth in the EMEA region was at a high single-digit rate. The Apparel product segment was the main growth driver in the quarter, supported by new product launches in the Sportstyle, Teamsport and Motorsport categories. Footwear and Accessories grew at a high single-digit rate.

The gross profit margin improved by 150 basis points to 49.6% in the third quarter (last year: 48.1%). The increase is due to more sales of new products with a higher margin and further sourcing improvements as well as positive effects from the product mix related to Apparel.

Operating expenses (OPEX) increased by 10.6% to € 489.7 million in the third quarter. The increase of operating expenses is mainly due to higher sales related variable costs based on increased sales volumes and higher retail investments related to the increase of our retail store count. 

The operating result (EBIT) rose by 28.4% from € 101.2 million last year to € 129.9 million due to a strong sales growth combined with an improved gross profit margin. This corresponds to an improvement of the EBIT-margin from 9.0% last year to 10.5% in the third quarter this year.

The financial result in the third quarter (€ -9.3 million; last year: € -3.4 million) was significantly impacted by currency losses mainly in Argentina and Turkey due to the weakness of those currencies versus the Euro and the US-Dollar. Taxes on income came in at a normalized rate of 27.4% (last year: 28.9%). Due to the improved results of the PUMA companies in which external companies hold minority interests, the net earnings to be distributed to these minority shareholders increased to € -10.1 million (previous year: € -7.4 million) in the third quarter (Net earnings attributable to non-controlling interests).

Net earnings increased from € 62.1 million to € 77.5 million and earnings per share were up from € 4.16 in the third quarter last year to € 5.18 correspondingly. 

Sales for the nine-month period were up by 16.7% currency adjusted to € 3,422.0 million (+10.5% reported). All regions and product segments supported sales growth with a currency-adjusted, double-digit increase.

Including eCommerce, PUMA's own and operated retail sales increased by 22.5% currency adjusted to € 771.2 million. This represented a share of 22.5% of total sales for the first nine months of 2018 (21.7% in the previous year). The reasons for the rise are a like-for-like sales growth in our own retail stores, the extension of our retail store network and a continued strong growth of our eCommerce business.

The gross profit margin improved by 150 basis points from 47.3% to 48.8% in the nine-month period. The increase came mainly from more sales of new products with a higher margin and further sourcing improvements. In addition, positive currency effects materialized in the second quarter.

Operating expenses (OPEX) increased by 9.8% and amounted to € 1,383.4 million. The increase was mainly caused by higher sales related variable costs based on increased sales volumes, intensified marketing activities and investments in our own retail store network. 

Info Graphic about PUMA's 3rd Quarter Results

The operating result (EBIT) improved by 39.6% from € 214.8 million last year to € 299.8 million in the first nine months of 2018 due to a strong sales growth and a higher gross profit margin. This corresponds to an EBIT-margin of 8.8% compared to 6.9% in the nine-month period last year.

The financial result in the nine-month period (€ -22.7 million; last year: € -5.9 million) was strongly impacted by currency losses mainly in Argentina and Turkey. Taxes on income came in at a normalized rate of 27.6% (last year: 28.3%). Due to the improved results of the PUMA companies in which external companies hold minority interests, the net earnings to be distributed to these minority shareholders increased to € -24.5 million in the first nine months (previous year: € -16.2 million) (Net earnings attributable to non-controlling interests).

Net earnings grew by 31.7% and came in at € 176.0 million (last year: € 133.6 million). This translates into earnings per share of € 11.77 compared to € 8.94 in the first nine months of 2017.

 

Balance Sheet and Working Capital

Currency translation effects and our continued focus on working capital management led to a slight decrease of working capital of -0.1% to € 762.2 million. Without these currency effects, working capital would have increased by approximately 6%, which is lower than the growth in our business. Inventories were up by 11.6% to € 888.4 million and trade receivables rose by 3.7% to € 702.7 million. On the liabilities side, trade payables and other current liabilities increased by 15.5% to a total of € 1,012.6 million.

The one-off dividend payment this year and the refinancing of the PUMA group after the reduction of Kering’s shareholding in PUMA have led to major movements in current and non-current liabilities in the balance sheet. 

 

 

Outlook 2018

The third quarter of 2018 saw a continued strong increase of sales and profitability, which was slightly above our expectations. As a consequence and based on the outlook for the remainder of the year, we slightly adapt our guidance for the full year 2018. PUMA now expects that currency-adjusted sales will increase between 14% and 16% (previous guidance: currency-adjusted increase between 12% and 14%). The gross profit margin is still anticipated to improve by approximately 100 basis points, while we now expect that operating expenses (OPEX) will increase at a low double-digit rate related to higher sales related variable costs (previous guidance: increase at a high single-digit rate). The operating result (EBIT) is now expected to come in between € 325 million and € 335 million (previous guidance: between € 310 million and € 330 million). In line with the previous guidance, Management still expects that net earnings will improve significantly in 2018.

 

 

Financial Calendar FY 2018:

 

February 12, 2018 Financial Results FY 2017

April 12, 2018 Annual General Meeting 

April 24, 2018 Quarterly Statement Q1 2018

July 26, 2018 Interim Report Q2 2018

October 25, 2018 Quarterly Statement Q3 2018

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.
     
herzogenaurach - february 14, 2019
PUMA DELIVERS STRONG GROWTH IN SALES AND PROFITABILITY IN 2018

Download the Media Kit below to get the press release and picture

2018 Fourth Quarter Facts

 

  • Sales increase by 20.1% currency adjusted to € 1,226 million (+17.9% reported) with strong growth in all regions and product segments
  • Gross profit margin remains stable at a high level of 47.1% 
  • Operating expenses (OPEX) increase by 17.1% due to higher sales related variable costs as well as higher marketing and retail investments
  • Operating result (EBIT) improves from € 30 million last year to € 38 million 
  • Strong sell-through of newly launched footwear franchises RS-X and Cali
  • PUMA sponsored team Denmark wins Handball World Cup 

 

2018 Full-Year Facts

  • Full-year sales increase by 17.6% currency adjusted to € 4,648 million (+12.4% reported) with double-digit growth in all regions and product segments
  • Gross profit margin improves by 110 basis points to 48.4%, supported by higher margins in all product segments
  • Increase in operating expenses of 11.8% provides slight operating leverage
  • Operating result (EBIT) improves strongly by 37.9% from € 245 million to € 337 million 
  • Net earnings and earnings per share increase by 38.0% from € 135.8 million to € 187.4 million and from € 9.09 to € 12.54 respectively
  • Free Cashflow improves from € 128 million to € 173 million 
  • A dividend of € 3.50 per share for 2018 to be proposed at the Annual General Meeting
  • PUMA share returns to M-DAX in June 2018
  • Strong new styles Thunder, RS-0 and RS-X established in the “chunky shoe” category
  • PUMA re-enters basketball category after 20 years
  • PUMA signs supermodel Adriana Lima as women’s training ambassador

Bjørn Gulden, Chief Executive Officer of PUMA SE: 

“We are very happy with how our business developed in 2018. Sales rose organically by 17.6% to €4,648 million and the operating result (Ebit) improved by 37.9% % to €337 million, which  shows our strong momentum.
The double-digit growth in all regions is a proof that the we have strenghtened the PUMA brand globally and the double-digit growth in all product divisions shows that we have enhanced our product portfolio.
We still have a lot to improve, but we feel we are moving our brand and company in a good direction. We see that our progress will also continue in 2019 and expect our currency adjusted sales to grow around 10% and our operating result to increase to a range between €395 million and €415 million.”

Info-Grafic Full Year Results

Fourth Quarter 2018

 

Sales

PUMA's sales growth continued in the fourth quarter of 2018. Sales increased by 20.1% currency adjusted to € 1,226.4 million (+17.9% reported), compared to € 1,040.2 million in the previous year. Sales growth was particularly strong in the Asia/Pacific region followed by the Americas, both increasing at double-digit rates. Both Apparel and Footwear showed strong growth in the fourth quarter of 2018, improving 28.6% and 17.4% respectively. For Footwear, it was the 18th consecutive quarter of sales growth.

 

Gross Profit Margin and Operating Expenses

The gross profit margin in the fourth quarter remained stable at a high level of 47.1%, despite negative currency impacts in the quarter. 

Operating expenses (OPEX) rose by 17.1% to € 544.9 million in the fourth quarter, caused by higher sales-related, variable costs and a step-up in retail investments, including e-commerce. Football sponsorships, marketing initiatives for new footwear franchises and the launch of the basketball category led to higher marketing costs. 

 

 

 

Operating Result and Net Earnings

The operating result (EBIT) improved by 26.1% from € 29.8 million to € 37.6 million in the fourth quarter 2018. The improvement in profitability was due to the strong sales growth combined with an OPEX increase at a slightly lower rate than sales. 

Net earnings in the fourth quarter 2018 improved significantly from € 2.2 million last year to € 15.7 million and earnings per share increased correspondingly from € 0.14 last year to € 1.05.
 

 

 

Full Year 2018

 

Sales

In the financial year 2018, PUMA’s sales increased by 17.6% currency adjusted to € 4,648.3 million (+12.4% reported). The significant difference between reported and currency-adjusted sales growth was due to the weakness of several major currencies against the Euro. 

In the EMEA region, sales rose by 11.4% currency adjusted to € 1,800.3 million (+9.4% reported). The main growth drivers in the region were France, Spain, the United Kingdom as well as Russia and Turkey, which all posted double-digit sales growth. 

Sales in the Americas region went up by 16.9% currency adjusted to € 1,612.5 million (+7.9% reported), with both North and Latin America contributing double-digit growth rates. The weakness of the Argentinian Peso against the Euro, however, led to the significant negative currency impact in the region. 

Growth was particularly strong in the Asia/Pacific (APAC) region, where currency-adjusted sales rose by 28.8% (reported +24.2%), mainly driven by high growth in China and Korea, while sales in Japan increased at a more moderate mid to high single-digit rate. 

Footwear continued to be a strong sales driver throughout the year. Sales were up 16.6% currency adjusted to € 2,184.7 million (+10.6% reported), exceeding the € 2 billion sales mark for the first time. Running and Training as well as Sportstyle were the categories with the strongest growth rates.

In the Apparel segment, sales rose by 22.2% currency adjusted to € 1,687.5 million (+17.1% reported). Logo-driven apparel within our Sportstyle category and new product launches in the Teamsport and Motorsport categories contributed to this increase.

Sales in Accessories grew by 11.0% currency adjusted to € 776.1 million (+7.8% reported). This increase was mainly driven by higher sales of legwear and bodywear products.

Including e-commerce, PUMA's retail sales increased by 24.0% currency-adjusted to € 1.127,5 million. This represents a share of 24.3% of total sales in 2018 (2017: 23.2%). Like-for-like sales growth in our retail stores, the extension of our retail store network as well as the extensive growth of our e-commerce business contributed to this rise.

 

 

Gross Profit Margin and Operating Expenses

The gross profit margin improved by 110 basis points from 47.3% to 48.4% in 2018. This increase was mainly driven by further improvements in sourcing and higher sales of new products with a higher margin. In addition, a higher share of own retail sales and the regional sales mix with stronger growth in Asia had a slight positive effect on the gross profit margin development as well. There were no full-year currency effects on the gross profit margin compared with the previous year, as positive and negative effects during the year cancelled each other out on a full-year basis.
The gross profit margin in the Footwear segment improved by 30 basis points to 45.8%. In Apparel, margins rose from 49.0% to 50.9% and Accessories margins increased from 48.5% to 50.3% in 2018.

Operating expenses (OPEX) rose by 11.8% and amounted to € 1,928.4 million in 2018. Intensified marketing activities, the refurbishment and extension of our own retail store network, including our e-commerce business as well as further investments into our IT-infrastructure have led to this increase. The OPEX ratio in percentage of total sales decreased from 41.7% in 2017 to 41.5% in 2018. This reflects operating leverage and contributes to the improvement of profitability in 2018.

 

 

Operating Result and Net Earnings

The operating result (EBIT) improved significantly by 37.9% from € 244.6 million to € 337.4 million in 2018, which was slightly above the upper end of the revised EBIT guidance of a range between € 325 million and € 335 million. This development reflects the improvement of PUMA’s profitability and was achieved through strong sales growth combined with a higher gross profit margin as well as operating leverage. As a result, the EBIT margin went up from 5.9% in 2017 to 7.3% in 2018. 

The financial result decreased from € -13.4 million in 2017 to € -24.0 million and was mainly impacted by higher expenses related to currency conversion differences. 

The tax rate for the full year 2018 amounted to a slightly lower rate of 26.7% compared to 27.4% last year, while the total tax expense increased to € 83.6 million in 2018 (2017: € 63.3 million).

Net earnings increased by 38.0% from € 135.8 million last year to € 187.4 million in 2018. This translates into improved earnings per share of € 12.54 compared to € 9.09 last year.

 

 

Working Capital

Despite a significant increase in sales and an increased number of own retail stores, working capital rose only slightly by 2.0% from € 493.9 million to € 503.9 million in 2018. Inventories grew by 17.5% to € 915.1 million mainly related to the planned sales growth from the 2019 spring/summer collection. Trade receivables rose by 9.9% from € 503.7 to € 553.7 million. On the liabilities side, trade payables and other current liabilities increased by 21.0% to a total of € 1,152.6 million (last year: total of 952.2 million).

 

cashflow

The free cash flow improved from € 128.5 million in 2017 to € 172.9 million in 2018. This development was a result of considerably higher earnings before taxes (EBT) and the only moderate increase in working capital. As of December 31, 2018, PUMA’s cash position amounted to € 463.7 million compared to € 415.0 million at the balance sheet date last year. 

 

proposal of dividend of € 3.50 per share

Based on PUMA’s positive business development in 2018 with an improvement of profitability and cash flow, the Management Board and the Supervisory Board of PUMA SE will propose to the Annual General Meeting on April18, 2019, a dividend of € 3.50 per share for the financial year 2018. This represents a payout ratio of 27.9% as a percentage of net earnings, in line with PUMA SE's dividend policy, which foresees a payout ratio of 25% to 35%.

 

brand and strategy update

In the year of PUMA’s 70th anniversary, we kept going full speed to pursue our goal of becoming the world’s fastest sports brand. We further strengthened our position in sports performance. This includes our return to basketball, the signings of top football clubs, such as A.C. Milan, Olympique de Marseille, Borussia Mönchengladbach and São Paulo based Palmeiras, as well as the outstanding performances of our partnered teams, athletes and federations. 

Over the past five years, we have focused on five strategic priorities: creating brand heat, a competitive product range, a leading offer for women, improved distribution quality and organizational speed. In 2018, we added a sixth priority with the aim of strengthening our position in the North American sports market – the reentry into basketball. 

Both from a sports and business perspective, PUMA’s return to Basketball was off to a promising start. Together with entrepreneur, business mogul and PUMA Basketball Creative Director Jay-Z, we rolled out an exciting campaign, that resonated well with athletes, media and fans. Our first shoe in this category after 20 years, the Clyde Court Disrupt, quickly sold out. The signings of some of the biggest names in basketball, such as Skylar Diggins-Smith, Terry Rozier, Rudy Gay, Danny Green and four-time NBA All-star DeMarcus Cousins, underpinned our performance credibility. In addition, we signed the Top Picks in the annual NBA draft Deandre Ayton, Marvin Bagley III, Kevin Knox, Michael Porter Jr and Zhaire Smith.

For our Football category, the FIFA World Cup 2018 in Russia was the perfect stage to present the PUMA brand and our innovative performance products. Our four partnered national teams Uruguay, Switzerland, Serbia and Senegal as well as our impressive roster of players ensured high brand visibility on the pitch. Uruguay and Switzerland secured PUMA’s presence in the knockout stage, while PUMA players Antoine Griezmann and Romelu Lukaku emerged as two of the top three scorers of the tournament. Antoine Griezmann was even named “FIFA Man of the Match” after scoring the winning goal in the final. All our players were equipped with special editions of the football boots PUMA FUTURE or PUMA ONE. 
We also continued to grow our portfolio of players by signing international football stars, such as Barcelona and Uruguay striker Luis Suarez, Vincent Kompany (Manchester City), Axel Witsel (Borussia Dortmund), David Silva (Manchester City), Dejan Lovren (FC Liverpool) and Davie Selke (Hertha BSC). 

Our Running and Training category thrived on the extraordinary performances of our track-and-field athletes along with the introduction of innovative products. The 19-year-old Cuban Juan Miguel Echevarria did not only win Gold at the Diamond League Meeting in Stockholm, but also claimed the IAAF title “Highlight of the Season 2018” with his incredible long-jump of 8.83 meters. We also signed additional top athletes, such as Europe’s “fastest man”, French sprinter Jimmy Vicaut. 
With our running shoes HYBRID RUNNER and HYBRID ROCKET, we introduced an entirely new midsole technology to the market. 

In our Women’s category, we welcomed supermodel Adriana Lima to the PUMA family as an ambassador for Women’s Training. On the product side, our shoe styles PHENOM and DEFY, worn by popstar and social media influencer Selena Gomez, were a great success with our female consumers.

In Motorsport, PUMA Formula One partners MERCEDES-AMG Petronas, Scuderia FERRARI and RED BULL Racing once again dominated the season. The championship titles were claimed by Mercedes and Lewis Hamilton – representing Lewis’ fifth career title. 
PUMA Motorsport lifestyle products were in growing demand, particularly in the USA and France. 

In our Golf category, our players Rickie Fowler, Lexi Thompson and Bryson DeChambeau continued to add excitement to the PUMA and COBRA Golf brands with numerous victories.  Bryson DeChambeau caused a stir with his ONE Length irons, winning five tournaments with this to date unique concept.

In our Sportstyle business, we proved that our “Forever Faster” spirit has already been deeply engrained into the way we do business. When consumers asked for “chunky shoes”, a reemerging sneaker trend from the 1990s featuring thick soles and an overall chunky look, we reacted immediately and introduced our successful new style platforms Thunder, RS-0 and the RS-X. 

Apart from PUMA’s 70th birthday, we celebrated another anniversary: the Suede, one of our greatest classics, turned 50. We marked this occasion with a string of special editions and collaborations with several designers, artists and brands. Throughout the year, we launched new Suede editions with designs by fashion icon Karl Lagerfeld, rock legend Paul Stanley and cartoon character Hello Kitty to name but a few.

We continued to improve the quality of our distribution channels. We have worked hard to be a flexible and service-oriented business partner in order to strengthen our relationship with key retailers and gain shelf space. Our direct-to-consumer business has been able to grow through expansion of our retail store network, like-for like sales growth in our existing stores and the continued strong growth of our eCommerce business.

To speed up our organizational processes, we further invested into our IT infrastructure with a strong focus on Business Intelligence, Planning and IT Security. Besides working on the modernization of our distribution centers worldwide, we have put our focus on the development of a new ERP systems, which will be rolled out in the coming years starting 2019. 

In 2019, PUMA will start working on a new multichannel distribution center in Geiselwind, Germany. We expect the Geiselwind center, which is the first in a series of investments and upgrades in our logistics operations, to be operational in early 2021. 

In addition to our business priorities, social, economic and environmental sustainability remains a core value for PUMA. We continued to execute our 10FOR20 strategy, while collaborating with industry peers, suppliers and NGOs to create positive impact.  

Inspired by sprint star Tommie Smith, who made a statement against racism and social inequality with his legendary “silent gesture” at the 1968 Olympics, PUMA launched the #REFORM platform in October. With the help of activists from the world of sports, music and entertainment, among others American rapper Meek Mill, the program supports NGOs and encourages conversations around issues such as universal equality and criminal justice reform in the United States.  

The PUMA share returned to the M-Dax in June last year, after our former majority shareholder Kering S.A. distributed approximately 70% of PUMA shares to its shareholders. 
 

 

outlook 2019

Our business developed strongly in 2018, both in terms of net sales and profitability. We are confident that the positive development will continue in 2019.

For the full year 2019, we therefore expect currency-adjusted sales growth of around 10%. We forecast the gross profit margin to show a slight improvement compared to last year (2018: 48.4%) and operating expenses (OPEX) to increase at a slightly lower rate than sales. Based on the current exchange rate levels, management expects an operating result (EBIT) for the financial year 2019 in a range between € 395 million and € 415 million (2018: € 337.4 million). Management also expects a significant improvement of net earnings in 2019. 
With that, PUMA is well on track towards achieving our medium-term ambition of 10% EBIT margin by 2021/22 with average annual sales growth of 10% in constant currency.

The new accounting standard relating to lease accounting (IFRS 16), which has been effective since January 1, 2019, leads to a capitalization of the operating leases on the balance sheet (an increase of approximately € 618 million in assets and liabilities on January 1st, 2019). The outlook for the operating result (EBIT) in a range of € 395 million to € 415 million (see above) includes a positive effect of approximately € 16 million caused by the new accounting standard. Taking into account interest and deferred tax effects of IFRS 16, the estimated impact on net earnings in 2019 is, however, a negative amount of approximately € 7 million.
Please refer to the Notes to the Consolidated Financial Statements, Chapter 1 General, for a detailed description of the new accounting standards and the effects of the first-time application of IFRS 16 Leases. 

 

 

Find our Financial Calendar for the Full Year 2019 here

herzogenaurach, germany - march 4, 2019
Puma se plans share split at a ratio of 1:10

PUMA SE plans share split at a ratio of 1:10 after preceding increase of the share capital from company funds 

The Supervisory Board and the Management Board of PUMA SE decided today to propose to the General Meeting on 18 April 2019 the resolution on a capital increase from company funds by EUR 112,213,532.16 to EUR 150,824,640.00 without the issuance of new shares (section 207(2)(2) Stock Corporation Act) as well as a subsequent amendment of the Articles of Association to re-divide the share capital at a ratio of 1 to 10 (share split).

Neither the capital increase from company funds nor the share split will result in any changes in the ownership structure of the shareholders in the Company. If the proposed resolutions are accepted by the General Meeting and the amendments to the Articles of Association is registered in the commercial register, each existing share will automatically be exchanged for 10 new shares. As a result of the increase in the number of shares of the Company by a factor of 10, their stock market price is expected to decrease accordingly. 

The agenda of the General Meeting 2019 including the resolution proposals of the Management Board and the Supervisory Board is expected to be published in the Federal Gazette on 11. March 2019.

herzogenaurach, germany - april 26, 2019
strong sales and ebit growth in the first quarter

Quarterly Statement Q1 2019

The Quarterly Statement can be downloaded (PDF) below.

2019 First-Quarter Facts

  • Sales increase by 15.3% currency-adjusted to € 1,319 million (+16.6% reported), driven by continued growth in all regions and product divisions
  • Gross profit margin improves by 80 basis points to 49.0% 
  • Operating expenses (OPEX) increase to € 511 million (last year: € 437 million) due to higher sales related variable costs, including logistics costs as well as higher marketing and retail investments 
  • Operating result (EBIT) improves by 27.0% to € 143 million (last year: € 112 million) 
  • PUMA signs the football clubs Manchester City and Valencia CF
  • PUMA will be official matchball partner of Spanish Football League “LaLiga” starting season 2019/20
  • PUMA becomes the exclusive merchandise and trackside retail partner of Formula 1
  • PUMA’s shareholders approve share split 1:10 at the Annual General Meeting on April 18 
  • Héloïse Temple-Boyer and Fiona May elected as new members of the supervisory board

Bjørn Gulden, Chief Executive Officer of PUMA SE: 

“The first quarter of 2019 was the best quarter PUMA has ever seen. Revenues of € 1,319 million (+15.3% currency adjusted) is the highest PUMA has ever achieved in a quarter and the EBIT of € 143 million (EBIT-margin 10.8%) was also the highest absolute EBIT PUMA has ever achieved. So, it has been a very good start into the year. The growth in all regions and all product divisions shows that we continue to make progress. Even if we have nine more months to go and despite a lot of uncertainty in the market, we feel comfortable that we will achieve our guidance for the full year.”

FIRST QUARTER 2019

PUMA's sales growth continued in the first quarter of 2019. Sales rose by 15.3% currency-adjusted to € 1,319.3 million (+16.6% reported) compared to € 1,131.1 million last year. The regions Asia/Pacific, driven by China, and the Americas contributed with double-digit sales growth, while sales in EMEA increased solidly. In terms of divisions, Apparel was the main growth driver in the quarter, followed by Accessories and Footwear. The categories Running and Training, Teamsport, Motorsport and Golf on the performance side as well as Sportstyle all recorded strong growth. The double-digit increase in both wholesale and direct-to-consumer sales underlines a well-balanced growth of our business.

The gross profit margin improved by 80 basis points from 48.2% to 49.0%. The increase resulted from a favorable product mix with higher growth in Apparel and a favorable regional sales mix with higher sales growth in the Asia/Pacific region. Currency effects also had a slight positive impact on the gross profit margin development in the first quarter. 
 

Q1 Results

Operating expenses (OPEX) rose by 16.8% to € 510.7 million in the first quarter. The increase was mainly caused by higher sales-related variable costs, including logistics costs as well as higher marketing and retail investments. 
 
The operating result (EBIT) improved by 27.0% from € 112.2 million to € 142.5 million in the first quarter 2019 due to a strong sales growth combined with a higher gross profit margin. This corresponds to an EBIT-margin of 10.8% compared to 9.9% in the first quarter last year.

Net earnings went up by 40.1% from € 67.4 million last year to € 94.4 million in the first quarter of 2019, supported by an improved financial result. As a consequence, earnings per share improved from € 4.51 to € 6.31.

 

Working Capital

Despite the significant sales growth, working capital rose by only 7.1% from € 791.0 million to € 846.9 million. Inventories were up by 19.3% to € 907.5 million due to management of supplier capacities and to support the growing demand in the upcoming quarters. Trade receivables rose by 12.3% from € 685.0 to € 769.2 million. On the liabilities side, trade payables and other current liabilities increased by 17.1% to a total of € 1,004.8 million (last year: total of € 858.2 million).

 

Effects from first-time application of IFRS 16 Leases and related extension of the balance sheet

  • The new lease standard (IFRS 16) has to be applied since the beginning of this year. This led to a significant extension of the balance sheet total as of March 31, 2019. The capitalization of the ‘rights of use’ from former operating-lease contracts at the amount of 
    € 635.6 million and the recognition of a corresponding lease liability on the balance sheet were the reasons for the increase of non-current assets and liabilities. A lease liability of 
    € 116.9 million is included in other current liabilities and € 535.1 million are included in other non-current liabilities. This extension of the balance sheet resulted in a negative impact on the equity ratio, which therefore decreased from 57.9% at year-end 2018 to 44.5% at the end of the first quarter 2019.
     
    The effects from the first-time application of IFRS 16 on the profit and loss statement of the first quarter 2019, however, were not material. IFRS 16 has had a slight positive effect on the operating result (EBIT) of € 3.8 million. Including the additional interest expense of € 6.6 million due to IFRS 16 and further deferred tax effects (+ € 0.8 million), the impact on net earnings in the first quarter 2019 in total was a negative amount of € 2.0 million.
    Please refer to the Notes to the Consolidated Financial Statements as of December 31, 2018, chapter 1 General, for a detailed description of the new lease accounting standard and the effects of the first-time application of IFRS 16.


     

    Outlook 2019

     

    After a strong start into 2019 both in terms of sales and profitability, we confirm our guidance for the full-year 2019, which was provided on February 14, 2019:

  • Sales: currency-adjusted growth of around 10%
  • Gross profit margin: slight improvement compared to last year (2018: 48.4%)
  • OPEX: increase at a slightly lower rate than sales
  • EBIT: in a range between € 395 million and € 415 million 
  • Net earnings: significant improvement

Cover Picture Credits: Getty Images

Herzogenaurach, Germany - June 6, 2019
PUMA sets date for 1:10 share split

Sports company PUMA has set June 10 as the date for its 1:10 share split, following approval by the company’s shareholders and regulatory clearance.

Starting June 10, each existing shareholder will therefore receive nine additional shares for each share they already own. It is expected that the price per share will adjust accordingly.

PUMA’s management has decided to initiate the stock split to make the shares more accessible to retail investors in order to further diversify its shareholder base.

The relevant changes to the articles of association were registered with the local court (Amtsgericht) in Fürth on May 23, 2019.

Herzogenaurach, Germany - July 31, 2019
Strong sales and EBIT growth continues in the second Quarter

PUMA slightly adapts full-year guidance for 2019

2019 Second Quarter Facts

  • Sales increase by 15.7% currency-adjusted to € 1,227 million (+16.9% reported) driven by continued growth in all regions and product divisions 
  • Gross profit margin improves to 49.3% 
  • Operating expenses (OPEX) increase 16.5% due to higher sales related costs as well as higher marketing and retail investments
  • Operating result (EBIT) up by 39% to € 80 million (last year: € 58 million)
  • PUMA excercises 1:10 share split 
  • PUMA athlete Danny Green wins the NBA Championship with the Toronto Raptors
  • PUMA is well represented at the FIFA Women’s World Cup in France by sponsoring 78 individual players and quarter finalist Italy
  • PUMA team Senegal reaches the final of the 2019 Africa Cup of Nations in Egypt
  • PUMA launches very successfully the kits of Manchester City and also announces the signing of Pep Guardiola as a brand ambassador

 

2019 half-year facts

  • Sales increase by 15.5% currency-adjusted to € 2,546 million (+16.8% reported) 
  • Gross profit margin up 80 basis points at 49.2%
  • Operating expenses (OPEX) increase by 16.6% and grow at a slightly lower rate than reported sales 
  • Operating result (EBIT) improves by 31% from € 170 million to € 223 million 
  • Net earnings increase from € 99 million last year to € 144 million and earnings per share increase from € 0.66 last year to € 0.96 respectively
  • Héloïse Temple-Boyer and Fiona May elected as new members of the supervisory board
  • PUMA announces the signing of the football clubs Manchester City as well as Valencia CF and will be official matchball partner of Spanish Football League “LaLiga” 

Bjørn Gulden, Chief Executive Officer of PUMA SE: 

“The second quarter of 2019 developed very positively for us, with sales growing 15.7% currency-adjusted and EBIT increasing 39%. All divisions and all regions saw healthy improvement. New styles of footwear sold well, apparel continued to be strong, replenishment orders for both apparel and footwear developed well and our direct-to-consumer business also performed well.
With this development in the first half-year and the current expectations for the second half, we have slightly adapted our outlook for the full year, expecting revenues to now improve around 13% in constant currency and the full-year EBIT to come in between € 410 million and € 430 million.
We would also like to mention that we are extremely happy with the cooperation with our new partner Manchester City and the entire City Football Group. The launch of their kits has been very successful and the initial sales have been higher than we both expected."

Second Quarter 2019

PUMA's strong sales growth continued in the second quarter of 2019. Sales increased by 15.7% currency-adjusted to € 1,226.8 million (+16.9% reported). The Asia/Pacific and Americas regions continued to contribute with double-digit increases, while growth in the EMEA region was at a high single-digit rate. Both Apparel and Footwear showed strong growth in the second quarter, improving by 22.7% and 14.5% respectively, while Accessories grew moderately by 6.3%. PUMA experienced growth across the categories with Sportstyle, Motorsport and Golf showing the highest growth rates.

The gross profit margin improved to 49.3% in the second quarter (last year: 48.6%). Positive impacts from channel and product mix, lower discounts and positive currency impacts led to margin improvements. 

Operating expenses (OPEX) rose by 16.5% to € 531.6 million in the second quarter. The increase was mainly caused by higher sales-related variable costs, including logistics costs as well as higher marketing and retail investments.

The operating result (EBIT) increased by 39.4% from € 57.6 million last year to € 80.3 million due to a strong sales growth combined with an improved gross profit margin and a slight operating leverage.

Net earnings increased from € 31.1 million to € 49.7 million and earnings per share were up from € 0.21 in the second quarter last year to € 0.33 correspondingly. 

Info Graphic Second Quarter 2019

First Half-Year 2019

Sales for the first half-year 2019 rose by 15.5% currency-adjusted to € 2,546.0 million (+16.8% reported). The strong sales development was largely driven by double-digit currency-adjusted growth rates in Asia/Pacific, where China continued to be the main growth driver, and the Americas. EMEA was at a more moderate level with a mid single-digit growth rate. From a product division perspective, the sales growth was driven by double-digit growth in Apparel with an increase of 24.8% as well as in Footwear, which grew by 11.7%. 

Wholesale continued to drive growth with an increase of 13.8% currency-adjusted, supported by a strong performance of our key accounts. PUMA's own and operated retail sales increased by 21.5% currency-adjusted to € 599.6 million including eCommerce. This represented a share of 23.6% of total sales for the first half of 2019 (22.5% in the previous year). The reasons for the rise are a like-for-like sales growth in our own retail stores, the expansion of our retail store network and a continued strong growth of our eCommerce business.

The gross profit margin improved by 80 basis points from 48.4% to 49.2% in the first half of 2019. Positive impacts from channel and product mix, lower discounts and positive currency impacts led to margin improvements.

Operating expenses (OPEX) increased by 16.6% and amounted to € 1,042.3 million. The increase was driven by higher sales related variable costs as well as continued investments in IT-infrastructure, marketing and our own retail business. 

The operating result (EBIT) grew by 31.2% from € 169.8 million last year to € 222.8 million in the first half of 2019 due to a strong sales growth combined with an increased gross profit margin and a slight operating leverage. This led to an improved EBIT-margin of 8.8% compared to 7.8% in the first half last year.

Net earnings rose by 46.3% to € 144.1 million (last year: € 98.5 million). This translates into earnings per share of € 0.96 compared to € 0.66 in the first half of 2018.

 

 

Working capital

Inventories were up by 19.4% at € 1,063.3 million due to the general sales growth, more retail stores as well as earlier receipts of products in order to balance supplier capacities and thereby avoid delivery issues. Trade receivables rose by only 11.2% to € 704.7 million. On the liabilities side, trade payables were up by 15.9% to € 740.1 million. This resulted in an increase of working capital by 15.7% to € 792.9 million.

 

Cashflow

The free cashflow in the first half of 2019 decreased slightly to € -104.4 million (1-6/2018:
€ -97.9 million). This development was a result of higher capital expenditures and an increase of working capital, while earnings before taxes (EBT) improved significantly. In addition, the first-time application of IFRS 16 Leases had a positive effect on the free cashflow. Please refer to the Notes to the Interim Report for a detailed description of the effects of the first-time application of IFRS 16 Leases.

 

Outlook 2019

The second quarter of 2019 saw a continued strong increase of sales and profitability. As a consequence and based on our expectations for the remainder of the year, we slightly adapt our guidance for the full year 2019. PUMA now expects that currency-adjusted sales will increase around 13% (previous guidance: currency-adjusted increase of around 10%). The gross profit margin is still anticipated to improve slightly (2018: 48.4%) and we continue to expect that operating expenses (OPEX) will increase at a slightly lower rate than sales. The operating result (EBIT) is now expected to come in between € 410 million and € 430 million (previous guidance: between € 395 million and € 415 million). In line with the previous guidance, management expects that net earnings will improve significantly in 2019.

 

brand and strategy update

With the announcement of several new partnerships, PUMA had an exciting first half of the year 2019.

In Football, PUMA signed its largest deal ever - both in terms of scope and ambition - teaming up with City Football Group, which includes reigning English Premier League champions Manchester City and a total of five teams on four continents. The new 2019/20 kits were successfully launched in July and exceeded any first day sales in the club’s history. In addition to the club, PUMA signed Manchester City’s iconic manager Pep Guardiola as a brand ambassador.
We also announced that in Spain, starting in the 2019/20 season, we will supply the official ball used in all professional matches of LaLiga Santander and LaLiga 1|2|3. To expand our presence in Spanish club football, we entered a long-term agreement with Valencia CF, one of Spain’s most successful teams.
Together with its existing partnerships, these new deals ensure that PUMA has a title contending presence in each of the key European football leagues.
At the FIFA Women’s World Cup in France, we sponsored quarter finalist Italy and 78 individual players. To celebrate women’s football, PUMA launched the latest evolution of the PUMA ONE football boot as the PUMA ONE Trailblazer, exclusively worn by our leading female players. 

In other Teamsport events, PUMA team Denmark took the title at the Handball World Championships and PUMA athletes Rasmus Lauge from Denmark and Bjarte Myrhol from Norway were named part of the event’s All-Star team. Beyond that, PUMA team New Zealand won the Women’s Netball World Championships in Liverpool.

In Track & Field, PUMA is already getting ready for the Olympic Games in Tokyo in 2020 and added several new athletes to its roster: world champion 400m hurdler Karsten Warholm, rising pole vault star Armand Duplantis, 2019 NCAA 100m and 200m champion Divine Oduduru, 2019 NCAA 100 meter hurdles champion Janeek Brown, long-jumper and sprinter Blessing Okagbare, high jumper Naoto Tobe and the Portuguese Athletics Federation.

In Motorsport, PUMA entered into a long-term contract with Porsche to become the exclusive technical partner for racing gear as well as shoes, caps and luggage. As part of our vision to bring the track to the street, PUMA launched a separate collaboration with Porsche Design, for co-branded footwear, apparel, and accessories, aimed at the higher end of the market.
We also partnered with W Series, the first racing competition for women, supplying high-performance racewear for all drivers.
Our athletes continued to perform well at the pinnacle of Motorport, as PUMA teams won two of the most prestigious races on the calendar: Lewis Hamilton in the Mercedes AMG Petronas won the Formula 1 Monaco Grand Prix and Simon Pagenaud of Team Penske claimed victory at the Indianapolis 500.
Adding to its leading offering in Motorsport, PUMA became the official trackside retail partner for Formula 1.

PUMA’s first full NBA Basketball season after the company’s return to the sport last year saw the Toronto Raptors shooting guard Danny Green become the first PUMA athlete to win the NBA Championship since Isiah Thomas in 1990.
PUMA launched its debut basketball shoe, the Clyde Court, in several new colorways as well as its second performance basketball shoe, the Uproar. Both products were highly visible throughout the NBA Season, the All-Star Game, the Playoffs, and the NBA Finals. In addition, we brought back a key heritage basketball style: the Ralph Sampson. The Ralph Sampson is a shoe with street style appeal and the initial response was very encouraging.

In Golf, PUMA’s latest signing Gary Woodland won the US Open as his first major title and created a lot of media echo with his “star-spangled” IGNITE PWRADAPT golf shoes.

In Sportstyle, the RS-X franchise continues to be a bestseller within the “chunky shoe category”, supported by the launch of the RS-X Trophy at the beginning of the year as well as by collaborations with MTV and Motorola. The Cali and Cali Bold, presented by PUMA’s ambassador Selena Gomez, were also among PUMA’s best-selling franchises in the first half of the year.

On the operational side, we continued to invest in our distribution and logistical network as well as in organizational processes. In the first six months of 2019, PUMA added 33 (net) owned and operated retail stores while in China, our partners opened around 200 new PUMA retail locations. In August, we will open our New York flagship store on Fifth Avenue, which will be another milestone for our company. At the beginning of the year, we started working on our new multichannel distribution center in Geiselwind, Germany. Construction is on track and the center is expected to be operational in early 2021. In addition, PUMA North America announced the opening of a new distribution hub just outside of Indianapolis for 2020.

Download the Media Kit below to get the Press Release (PDF) and image.

 

Have a look at our Financial Calendar for the Full Year 2019

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

PUMA slightly adapts guidance for the full year 2019.

2019 Third-Quarter Facts

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

2019 nine-months facts

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

Bjørn Gulden, Chief Executive Officer of PUMA SE:

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

Third Quarter 2019

PUMA's strong sales growth continued in the third quarter of 2019. Sales increased by 17.0% currency adjusted to € 1,477.6 million (+19.0% reported). The Asia/Pacific and Americas regions continued to contribute with double-digit increases, while growth in the EMEA region was at a high single-digit rate. Footwear, Apparel and Accessories all showed strong growth in the third quarter, improving by 16.9%, 18.7% and 13.4% respectively. Sportstyle, Motorsport, Golf and Running and Training were the categories with the highest growth rates.

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

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

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

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

Info Graphics Q3 Results PUMA

Nine Months 2019

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

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

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

Operating expenses (OPEX) increased by 17.2% and amounted to € 1,620.7 million. The increase was driven by higher sales-related variable costs as well as continued investments in IT infrastructure, marketing and our own retail business. 

The operating result (EBIT) grew by 28.4% from € 299.8 million last year to € 385.0 million in the first nine months of 2019 due to a strong sales growth combined with an increased gross profit margin and a slight operating leverage. This led to an improved EBIT-margin of 9.6% compared to 8.8% in the first nine months last year.

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

 

Working Capital

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

 

outlook 2019

The third quarter saw a continued strong increase in sales and profitability. Based on this and our expectations for the fourth quarter, we slightly adapt our guidance for the full year 2019. PUMA now expects that currency adjusted sales will increase around 15% (previous guidance: currency adjusted increase of around 13%). The gross profit margin is still anticipated to improve slightly (2018: 48.4%) and we continue to expect that operating expenses (OPEX) will increase at a slightly lower rate than sales. As a consequence, we expect the operating result (EBIT) to come in between € 420 million and € 430 million, despite the negative impact from new tariffs in the fourth quarter in the United States (previous guidance: between € 410 million and € 430 million). In line with the previous guidance, management expects that net earnings will improve significantly in 2019.

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