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Herzogenaurach (euro adhoc) - PRESS RELEASE
PUMA reconfirms annual Outlook after posting strong Third-Quarter Sales
Herzogenaurach, October 25, 2011
Highlights Third Quarter 2011
Consolidated sales increased by 10.2% currency adjusted to EUR 841.6
Gross profit margin remained at 50.0% despite volatile input prices
EBIT improved by 1,8% to EUR 118.6 million
Net earnings remained flat at EUR 81.7 million
EPS are up to EUR 5.45 from EUR 5.43
PUMA has signed football stars Agüero, Falcao and Fàbregas
Highlights First Nine Months of 2011
Consolidated sales climbed 11.0% currency adjusted to EUR 2.3 billion
Gross profit margin remained at a sector-best 50.6%
EBIT rose by 2.2% to EUR 285.0 million
Net earnings improved by 4.7% to EUR 197.1 million
EPS increased from EUR 12.51 to EUR 13.15
Outlook for the remainder of the Financial Year 2011
PUMA´s management reiterates that PUMA´s target is EUR 3 billion in
for the full year.
In light of PUMA´s "Back on the Attack" growth strategy, investments and
expenses will remain at a high level, and gross profit margins will
continue to be stressed based on procurement price volatilities.
Management continues to foresee an improvement of net earnings in mid
single-digits for the full year.
"PUMA posted a very solid sales performance for the fifth consecutive quarter,"
said Franz Koch, CEO of PUMA SE. "This underpins our 5-year growth strategy,
which is already delivering results. After a strong performance in the first
nine months of this year, we are now approaching our sales target of EUR
billion for the full year, and despite continuing cost pressures we maintain
our forecast of an improvement in net earnings in mid single-digits."
Asia/Pacific and Latin America drive PUMA´s Sales Growth in the Third Quarter -
Performance Business accelerating
PUMA´s third-quarter consolidated sales rose 10.2% currency adjusted and 7.3%
in Euro terms to EUR 841.6 million compared to last year, representing the
successful quarterly performance in the firm´s history. Asia and Latin America
provided the platform for these numbers, underpinning the excellent overall
result with double-digit growth.
With all product categories contributing to this increase, Footwear rose 7.0%
currency adjusted to EUR 431.1 million, Apparel went up 13.8% to EUR 294.7
and Accessories climbed 13.9% to EUR 115.8 million.
PUMA´s Running category in particular grew significantly, boosted by Usain
Bolt´s spectacular performances at the Track & Field World Championships in
Daegu and by the light-weight concept which includes our best selling PUMA Faas
range. The shoe is constructed with BioRide Technology which provides runners
with a naturally responsive ride. PUMA´s Women´s Fitness category is growing
strongly, a consequence of enhanced targeting of the female consumer
demographic with PUMA´s Bodytrain concept. PUMA´s Sailing category also
improved, as sales have been accelerating in the run-up to PUMA´s participation
in the Volvo Ocean Race 2011-2012. Given the duration of this sailing marathon
and in the light of our new extended range of outdoor products, PUMA expects
the positive performance of its Sailing category to continue.
PUMA´s five-year growth plan "Back on the Attack" already yielding fruit
As previously detailed, PUMA is continuing to work on improving its performance
categories without losing sight of its Sportlifestyle positioning as a brand.
This was laid out in the company´s growth strategy one year ago, which focused
on strengthening PUMA´s Sports Performance business alongside its lifestyle
segment. To further boost PUMA´s brand visibility on international football
pitches and underline our position as the No. 3 football brand, PUMA signed
three of the world´s top football stars during the third quarter: Manchester
City´s Sergio Agüero, Atletico Madrid´s Falcao and FC Barcelona´s Cesc
PUMA also introduced its new football boot, the Powercat 12. These boots will
be worn by Fàbregas, Nemanja Vidic of Manchester United and Gianluigi Buffon,
goalkeeper of the Italian National Team, amongst others. This innovative boot
features the new PUMA 3D DUO Power Shooting Technology, applied to the inside
of the boot.
Cobra-PUMA-Golf also continues to perform well, where the 360 degree offering
appeals to discerning consumers. PUMA also congratulates its brand ambassador
and golf professional Lexi Thompson who, at 16 years of age, has become the
youngest ever winner on the LPGA tour in America.
Asia/Pacific and Latin America remain the main growth areas in the quarter
In regional terms, PUMA continued its excellent performance in Asia/Pacific,
with sales growing by 16.4% currency-adjusted to EUR 196.0 million.
Running gear such as the Faas range and Women´s Fitness products (Bodytrain)
drove the overall growth in this region.
EMEA also performed well, posting an increase of 9.5% currency adjusted to
410.6 million. Russia, Turkey, Spain and Germany in particular contributed to
Sales in the Americas grew by 6.7% currency-adjusted but were down 0.7% in Euro
terms at EUR 235.0 million. Latin America delivered a remarkable
performance, reflecting broad-based double-digit growth across all countries in
the region, while North America had to comp against strong double-digit growth
numbers from the previous year.
Consolidated sales for the nine-month period climbed 11.0% currency adjusted
(9.9% in Euro terms) to EUR 2.29 billion. EMEA sales rose 7.7% (7.6%
adjusted), the Americas improved a satisfying 8.7% (14.2% currency adjusted)
and Asia/Pacific climbed an impressive 16.4% (14.3% currency adjusted).
Nine-month sales across all product categories continued to climb. Footwear
sales were up 7.5% (9.5% currency adjusted), Apparel sales increased 8.8% (8.9%
currency adjusted) and Accessories grew 22.7% (22.8% currency adjusted), due in
part to the full year effect of the Cobra golf acquisition last year.
Gross Profit Margin remains at industry-leading levels despite cost pressure
PUMA´s ongoing efficiency drive has resulted in a third quarter gross profit
margin of 50.0%, which remains the industry leading number.
The Footwear segment had a gross profit margin of 49.8%, up from 49.7%. Apparel
stood at 50.3%, up from 50.0%. Accessories were at 50.0%, a decline from 51.8%
which can be attributed to higher procurement costs.
For the first nine months of 2011, gross profit margin is down slightly to
50.6% from 51.0% compared to last year. The Footwear margin is currently at
49.8% down from 50.4%, Apparel down from 51.9% to 50.9% and Accessories up from
51.2% to 52.4%.
Operating expenses rose by 9.7% to EUR 307.0 million during the third quarter
2011. As a percentage of sales, this represents a slight increase from 35.7% to
36.5% compared to last year. For the full year to the end of September 2011,
Operating expenses rose by 13.6% to EUR 885.5 million. Increases in
arose from our continued investments outlined in our 5-year growth plan and the
full year effects caused by the extension of the scope of consolidation with
Cobra and PUMA Spain now fully included. The majority of those incremental
increases went into Marketing, Product Design and enhancements in our supply
Operating profit improved to EUR 118.6 million from EUR 116.6 million in line
expectations. This represents 14.1% of consolidated sales versus 14.9% at this
time last year. On a nine month basis EBIT was up 2.2% to EUR 285.0 million.
Financial Result / Income from associated companies
The financial result declined from EUR -1.4 million to EUR -2.1 million,
the nine month number improved from EUR -4.1 million last year to EUR -3.9
Earnings before Taxes
PUMA´s third quarter EBT rose from EUR 115.1 million to EUR 116.6 million.
also rose from EUR 274.8 million to EUR 281.1 million on a nine month
Quarterly tax expenses increased from EUR 33.4 million to EUR 34.9 million and
tax rate increased from 29.0% to 30.0% in the quarter but improved from 31.5%
to 30.0% as of September 30, 2011.
Consolidated net earnings were flat at EUR 81.7. Earnings per share rose from
5.43 to EUR 5.45, and diluted earnings per share were up from EUR 5.39 to EUR
For the first nine months of 2011, net earnings rose by 4.7% to EUR
million. EPS increased by 5.1% to EUR 13.15.
Net Assets and Financial Position
Total assets (as of September 30, 2011) grew by 4.5% from EUR 2,319.0 million
EUR 2,422.5 million. This rise is primarily attributable to an increase in
inventories and trade receivables based on the additional volume in business.
The equity ratio rose sharply from 57.8% to 62.9%, signifying further
improvement in our capital base. In absolute figures, shareholders' equity
increased by 13.7% from EUR 1,340.2 million to EUR 1,524.3 million.
PUMA´s overall Working Capital went up by 35.0% to EUR 668.7 million. On
asset side, inventories went up by 18.5% from EUR 449.2 million to EUR
million, supporting our continued and expected sales growth in addition to our
new styles and offerings. Trade receivables also increased, up 13.3% from
538.9 million to EUR 610.5 million. This again is an effect of our growth
sales compared to this point in time last year.
The Free Cashflow (before acquisitions) came in at EUR -89.4 million versus
57.9 million last year. The additional outflow resulted from tax payments and
higher working capital needed as well as higher CAPEX. For Capex, the company
spent EUR 44.6 million versus EUR 35.5 million in 2010. The increase derives
from investments in the improvement of organizational processes and IT systems
as well as in the expansion of our Retail store portfolio, all of which
continue to be integral components of our growth strategy.
Total cash (as of September 30, 2011) dropped by 30.7% to EUR 289.5 million
EUR 417.9 million last year. Bank debts were reduced by 39.9% from EUR 57.2
to EUR 34.4 million. As a result, the net cash position decreased 29.3%, from
360.7 million to EUR 255.1 million.
PUMA did not activate its share buyback program during the third quarter of
Outlook for the Financial Year 2011
Going into the final quarter of 2011, we reiterate that PUMA´s target is
billion in sales for the full year. Our overall outlook remains positive
despite the current uncertainty afflicting various markets at this time. We
anticipate ongoing input cost volatility, although we have demonstrated in the
third quarter that our ability to maintain gross profit margins remains
undiminished. As previously communicated, our current elevated operating and
capital expenditures are an integral part of our growth strategy. None the
less, we continue to expect full year net earnings to improve in the mid-single
Ulf Santjer - Corporate Communications - PUMA SE - +49 9132 81 2489 -
Kerstin Neuber - Corporate Communications - PUMA SE - +49 9132 81 2984 -
Carl Baker - Finance - PUMA SE - +49 9132 81 3188 - email@example.com
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.
PUMA is one of the world´s leading Sportlifestyle companies that designs and
develops footwear, apparel and accessories. It is committed to working in ways
that contribute to the world by supporting Creativity, SAFE Sustainability and
Peace, and by staying true to the principles of being Fair, Honest, Positive
and Creative in decisions made and actions taken. PUMA starts in Sport and ends
in Fashion. Its Sport Performance and Lifestyle labels include categories such
as Football, Running, Motorsports, Golf and Sailing. Sport Fashion features
collaborations with renowned designer labels such as Alexander McQueen, Mihara
Yasuhiro and Sergio Rossi. The PUMA Group owns the brands PUMA, Cobra Golf and
Tretorn. The company, which was founded in 1948, distributes its products in
more than 120 countries, employs more than 10,000 people worldwide and has
headquarters in Herzogenaurach/Germany, Boston, London and Hong Kong. For more
information, please visit http://www.puma.com
Further inquiry note:
Telefon: +49 (0)9132 81-2984
end of announcement euro adhoc
company: PUMA SE
PUMA Way 1
phone: +49 (0)9132 81 0
FAX: +49 (0)9132 81-2246
sector: Consumer Goods
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