EANS-News: PUMA's 2012 Sales meet Expectations - Transformation and Cost Reduction Program impact Profitability


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Financial Figures/Balance Sheet

Herzogenaurach (euro adhoc) - PUMA's 2012 Sales meet Expectations

         Transformation and Cost Reduction Program impact Profitability

                        Herzogenaurach, February 14, 2013


2012 Fourth Quarter Highlights


    - PUMA's consolidated sales climb by 11.7% in Euro terms to EUR 804.7
million.
    - Gross profit margin declines to 44.6% due to inventory clearance.
    - EBIT before special items falls slightly to EUR 42.8 million.
    - Special items of EUR 98.2 million booked in the quarter.
    - Net earnings come in at EUR -42.6 million, impacted by special items.


2012 Full Year Highlights


    - PUMA's full year consolidated sales rise by 8.7% in  Euro  terms  to  just
      under EUR 3.3 billion.
    - Gross profit margin abates to 48.3%.
    - EBIT before special items softens by 12.8% to EUR 290.7 million.
    - Special items of  EUR  177.5  million  caused  by  Transformation  and 
Cost
      Reduction Program, Spain Arbitration and restructuring  of  businesses  in
      Greece, Cyprus and Bulgaria.
    - EBIT including special items totals EUR 113.2 million.
    - EPS amount to EUR 4.69 after EUR 15.36 last year.


Outlook for the Financial Year 2013


    - Transition Period defined within our strategy extended into 2013
    - Launch of "The Nature of  Performance"  brand  platform  and  new  product
      innovations to revitalize Performance categories
    - Management expects 2013 sales unchanged from the 2012 level
    - Management envisages an increase in EBIT before special items of  low-  to
      mid-single digits and a significant improvement of net earnings




"Despite a continuously challenging market environment, particularly in  Europe,
PUMA delivered a strong sales performance in the fourth quarter, enabling us  to
meet our sales projections for the full year of 2012," said Franz Koch,  CEO  of
PUMA SE. "We have completed defining the  scope  of  PUMA's  Transformation  and
Cost Reduction Program,  and  will  continue  with  the  implementation  of  all
measures throughout 2013 to improve  the  company's  profitability.  I  want  to
reiterate that it is not our priority to push for sales growth at any cost,  but
instead focus on improving desirability for the PUMA brand."
   

Strong performances in Asia and North America give impetus to PUMA's Fourth
                              Quarter Sales Growth

PUMA delivered a strong  sales  performance  in  the  fourth  quarter  of  2012.
Boosted  by  double-digit  sales  growth  in  Asia  and  North  America,  PUMA's
consolidated sales increased by nearly  12%  in  Euro  terms  or  8.7%  currency
adjusted to EUR 804.7 million from October 1 to  December  31.  The  numbers 
were
supported by the performance of Cobra PUMA Golf, with  its  products  resonating
exceptionally well with consumers.

Sales Performance by Segment
All of PUMA's product segments grew in the fourth quarter of 2012. Footwear  was
up by 8.6% in Euro terms to EUR 367.9 million. On  the  Performance  side, 
PUMA's
Faas footwear family continued to appeal  to  consumers  while  the  PUMA  Suede
range fuelled sales in PUMA's Lifestyle footwear business.

Apparel climbed by 15.2% in Euro terms  to  EUR  316.6  million  after 
increasing
demand for Fitness & Training gear. Accessories rose by 12.3% in reported  terms
to EUR 120.1 million driven by our US joint ventures Janed and Wheat  as  well 
as
our Cobra PUMA Golf business.

Sales Performance by Region
While PUMA's sales increased in all regions,  performance  in  the  Asia/Pacific
region was exceptionally satisfactory during the fourth quarter. Sales  rose  by
16.2% to EUR 246.7 million while PUMA expanded in  virtually  all  markets. 
Japan
and India in particular excelled on the back  of  demand  for  evoSPEED  Apparel
products. Seasonal factors also played a part, with winter  collections  gaining
traction  with  consumers,  especially  PUMA  branded  duffel  coats  and  parka
collections in Korea, China and Japan.

PUMA was also able to reverse the slight declines from previous quarters in  the
EMEA region, with sales rising by 7.0% in Euro terms to EUR  253.4  million. 
This
performance was supported by strong growth in Germany,  Sweden  and  Switzerland
delivering satisfying growth rates. PUMA's Lifestyle footwear ranges sold  well,
especially the PUMA Suede in developed  countries  as  well  as  our  Motorsport
collections in emerging markets.
In the  Americas,  PUMA  continued  to  increase  sales  at  a  favorable  rate,
improving by 12.2% in reported terms to EUR 304.5 million. This growth was 
driven
mainly by the Cobra PUMA Golf business as well as  by  undiminished  demand  for
Fitness, Lifestyle and Motorsport products.

Sales Performance Retail
PUMA's retail business increased  by  a  significant  23.0%,  with  the  company
operating 60 additional stores when compared  to  the  fourth  quarter  of  last
year. As in the three previous quarters, our comparable  store  sales  developed
positively, while E-commerce sales rose by 23.4% over the same period.

Margin, Expenses and Profitability
PUMA's fourth quarter gross profit margin declined  from  46.7%  to  44.6%.  The
Footwear margin fell sharply from 46.6% to 41.8%, due  to  inventory  clearances
during the quarter and unfavorable hedging rates as  well  as  a  shift  in  the
regional mix. The gross profit margin for Apparel, however, improved from  45.9%
to 46.6% and Accessories declined from 49.0% to 48.0%.

Operating expenses in the fourth quarter continued to  rise,  by  10.0%  from 
EUR
292.3 million to EUR 321.5 million. This was equivalent to 40.0% of sales  and 
an
OPEX ratio improvement from 40.6% in 2011. The absolute  increase  in  operating
expenses is mostly attributable to higher marketing and retail expenses  on  the
back of our increased retail portfolio as  well  as  continuing  IT  and  supply
chain infrastructure improvements.

The EBIT before special items fell by 11.2% to EUR  42.8  million  in  the 
fourth
quarter from last year's EUR 48.1 million and also as a percentage of sales, 
from
6.7% to 5.3%.

In addition to the special items  of  EUR  79.3  million  reported  in  the 
third
quarter, PUMA recorded a further EUR 98.2 million in special items  for  the 
last
three months of 2012. These additional items consist of the  arbitral  award  in
December related to the trademark rights in  Spain,  the  restructuring  of  our
distribution set-up and the closure of our subsidiaries in  Greece,  Cyprus  and
Bulgaria, as well as the streamlining of our product and endorsement  portfolio.

The fourth quarter financial result further improved  from  EUR  -8.9  million 
to
neutral, largely as a result of a decline of foreign exchange impacts.

EBT in the fourth quarter fell from EUR 39.3  million  to  EUR  -55.4  million. 
Net
earnings consequently also declined from EUR 33.1 million to a  loss  of  EUR 
-42.6
million in the quarter and Earnings per share  followed  suit,  reduced  from 
EUR
2.21 to EUR -2.85. These drops all stem from  the  special  items  booked  in 
the
quarter.

                    PUMA reaches 2012 Full Year Sales Target

2012 was an exceptional year for PUMA in many ways. The  Football  Euro  Cup  in
June, the conclusion of PUMA's second Volvo Ocean Race in July  and  the  Summer
Olympics in August turned 2012 into a year  full  of  major  sports  highlights.
These events provided the perfect platform for PUMA  to  generate  global  brand
visibility and desirability.

In terms of product, 2013 will be a pioneering year for PUMA, as the company re-
energizes its Performance positioning through the introduction of a  new  cross-
category brand platform: The Nature of Performance. The  Nature  of  Performance
unifies all of PUMA's performance categories with a consistent voice,  look  and
feel and serves as the inspiration for a collection of innovative  new  products
in the Football, Running, Training, Fitness and Golf categories.

PUMA's management began to  implement  the  company's  Transformation  and  Cost
Reduction Program throughout the second half of 2012, laying the groundwork  for
substantial financial improvements going forward. The program  entails  the  set
up of a new business model  in  Europe  by  reducing  the  number  of  reporting
entities from 23  countries  to  seven  areas  as  well  as  a  strong  European
management paradigm. The areas  DACH  (Germany,  Austria,  Switzerland),  IBERIA
(Spain,  Portugal),  UKIB  (UK,  Ireland  and  Benelux),  SCANDINAVIA  (Denmark,
Finland, Norway, Sweden), EASTERN EUROPE  (Estonia,  Latvia,  Lithuania,  Poland
and  Slovakia,  Czech  Republic,  Hungary),  FRANCE  and  ITALY  have  all  been
implemented.

The  Transformation  and  Cost  Reduction  Program  includes  the   closure   of
approximately 90 unprofitable stores, mostly in established markets,  which  has
also begun.  However,  PUMA  will  continue  to  open  new  stores  in  selected
profitable locations  throughout  2013,  primarily  in  emerging  markets.  PUMA
expects to be operating 540 stores at the end of 2013 compared with  590  stores
at the end of 2012.

PUMA has also assessed its  sponsorship  portfolio  and  terminated  endorsement
contracts that are either unprofitable or are no  longer  part  of  PUMA's  core
categories going forward. Within this context, PUMA has  decided  to  focus  its
activities in the Sailing category on endorsing the  America's  Cup  and  ORACLE
TEAM USA for 2013. Beyond 2013,  PUMA  will  cease  the  production  of  Sailing
products, and focus instead on its  Outdoor  business,  for  which  Sailing  has
served as the perfect springboard. PUMA has also decided to  exit  all  European
Rugby activities, including the endorsement of the Irish  Rugby  Football  Union
beyond the 2013/14 season.

Full year sales increase to almost EUR 3.3 billion
Consolidated sales for the  Full  Year  climbed  8.7%  in  Euro  terms  or  4.6%
currency adjusted to EUR 3,270.7 million. With this record result,  PUMA 
achieved
its sales target for the full year.

Sales Performance by Region
While sales in EMEA softened by 0.8% in Euro terms to EUR 1.3  billion  due  to 
a
weaker  performance  in  Western  Europe,  there  were  strong  performances  in
Germany, Russia  and  Turkey  in  2012.  The  Americas  delivered  a  satisfying
performance, including North America, Mexico and Argentina, increasing  in  Euro
terms by 16.6% to EUR 1.13 billion. Asia/Pacific was  equally  strong,  rising 
by
15.3% to EUR 841.7 million, supported by  good  numbers  in  Japan  and  India 
in
particular.

Sales Performance by Segment
In terms of segments, Footwear grew  3.6%  in  Euro  terms  to  EUR  1.6 
billion.
Apparel rose by 11.2% to EUR 1.15 billion, while Accessories posted an 
impressive
20.7% increase to EUR 523.6 million also bolstered  by  consolidation  effects 
of
the new joint ventures.

Retail sales climb by EUR 109.0 million
Sales in our owned and operated retail outlets rose by 21.2% in 2012 to EUR 
623.9
million, an increase of EUR 109.0 million from 2011. This is due in  part  to 
the
expansion of our retail base compared to the end of 2011.  As  a  percentage  of
total turnover, retail sales rose from 17.9% to 19.1%. E-commerce also posted  a
gain, up 16.5% for the year.

Gross profit margin eases to 48.3%
For the full year, PUMA's gross profit margin moved down from 49.6% to 48.3%  in
2012. This  was  due  to  a  combination  of  factors,  most  notably  inventory
clearance, the regional mix and also continued input cost pressure in  the  form
of wage inflation in the Far East. The Footwear margin declined  from  49.1%  to
46.5%. Apparel rose slightly, from 49.6%  to  49.8%  whereas  Accessories  fell,
from 51.6% to 50.5%.

Operating expenses
PUMA's full year operating expenses rose  by  11.0%  in  2012,  from  EUR 
1,177.8
million to EUR 1,307.5 million, slightly ahead of and equal  to  40.0%  of 
sales.
Marketing and Retail rose by 10.7% to EUR 609.3 million, and also  slightly  as 
a
percentage of sales to 18.6% after 18.3%  last  year,  caused  by  supporting  a
double event year and the increasing number of stores operated  by  PUMA.  Other
Selling Expenses rose 11.4% to EUR 431.1 million. Similarly, Research, Design 
and
Development costs rose 10.3% to EUR 84.9 million as PUMA  continues  to 
emphasize
its product pipeline. General and Administrative Expenses  were  up  5.0%  to 
EUR
205.0 million. Despite this, the expense ratio declined from  6.5%  to  6.3%  in
2012 due to cost saving measures. The Company reported  other  operating  income
of EUR 22.9 million compared to EUR 32.2 million in 2011.

Earnings before special items
EBIT before special items declined 12.8% to EUR  290.7  million  as  a  result 
of
higher costs and lower than expected margins. As a percentage of sales  this  is
equal to 8.9% for the year compared to last year's 11.1%.

Special Items
PUMA recorded EUR  124.9  million  in  special  items  that  are  related  to 
the
Transformation and Cost Reduction Program. These have been  incurred  mainly  by
restructuring the European region, optimizing the  retail  portfolio,  adjusting
the product and endorsement portfolio, and  reorganizing  our  global  functions
and local subsidiaries.

As announced on 20 December 2012, the former  Spanish  distributor  and  license
holder Estudio 2000 S.A., who owned several PUMA trademark rights in Spain,  was
obliged to vest these to PUMA in accordance with the award  of  the  arbitration
panel. According to this  ruling,  the  transfer  of  the  trademark  rights  is
subject to a one-time payment of EUR 42.2 million to Estudio 2000 S.A., which 
led
to a one-off expense of EUR 24.6 million in 2012.

For Greece,  Cyprus  and  Bulgaria,  PUMA  has  appointed  Sportswind,  a  local
distributor, to take over PUMA's business  activities  in  these  countries,  as
PUMA wants to  focus  its  efforts,  initiatives  and  investments  on  its  key
strategic markets. The distribution  agreement  should  reduce  PUMA's  business
risks in these markets substantially while at the same time improve  its  sales.
PUMA will close its own operations in due course in  these  three  markets.  The
restructuring of the aforementioned  distribution  and  operations  resulted  in
additional one-time costs of EUR 28.0 million.

Operational result after Special Items
The EBIT after special items for  2012  was  EUR  113.2  million,  or  3.5%  as 
a
percentage of sales.

The financial result for 2012 improved significantly  and  was  EUR  -0.9 
million
compared to EUR -12.8 million in 2011 due to lower  foreign  exchange  impacts 
in
PUMA's financing activities.

Full year EBT was therefore EUR 112.3 million, or 3.4% of  sales,  while  the 
tax
ratio remained stable at 28.9%.

As a result of our Transformation  and  Cost  Reduction  Program  in  2012,  net
earnings for the financial year 2012 were EUR 70.2 million, compared  to  EUR 
230.1
million last year and EPS was therefore equal to  EUR  4.69  and  down  from 
last
year's EUR 15.36.


                        Net Assets and Financial Position


Equity
The  equity  ratio  rose  from  62.2%  to  63.1%,  which   indicates   continued
improvement in our capital base, despite the lower net earnings in 2012.

Working Capital
PUMA's overall Working Capital increased by 16.8% to EUR  623.7  million,  due 
in
particular to a decline of working capital related liabilities  at  the  balance
sheet  date.  On  the  asset  side,  testament  to  PUMAs   strict   management,
Inventories  rose  only  slightly,  by  2.9%  to  EUR  552.5  million  and  
Trade
receivables actually decreased despite the rise in sales, down 4.9% to  EUR 
507.0
million.

Cashflow / Capex / Cash Position
Free cashflow before acquisitions for the full year improved  by  37.1%  from 
EUR
61.0 million to EUR 83.5 million in 2012 mainly due to lower  tax  payments. 
With
regards to our Capex, PUMA's outgoings increased by  14.1%  to  EUR  81.2 
million
related to store openings and IT investments.  Payments  for  acquisitions  more
than doubled to EUR 91.7 million, consisting for the most part of PUMA's 
purchase
of  all  outstanding  Dobotex  shares  at  the  beginning  of  the  year.  As  a
consequence, the net cash position decreased by 12.1% to EUR 363.2 million.

Dividend
The Administrative Board will propose at the Annual General Meeting  on  May  7,
2013, that a dividend of EUR 0.50 per share (EUR 2.00 in the previous year) be 
paid
for the financial year 2012. This is a result of the reduced earnings caused  by
the special  items  undertaken  under  the  Transformation  and  Cost  Reduction
Program, the  restructuring  of  the  distribution  in  southern  east  European
countries and the Arbitration ruling in Spain.

Share buyback
The company did not buy  back  any  of  its  own  shares  throughout  the  year,
including the fourth quarter of 2012. As of the balance sheet date,  PUMA  owned
143.185 of its own shares, equal to EUR 32.2 million.


                                     Outlook


Management expects that PUMA's sales in 2013 will remain at a  level  consistent
with that of 2012. This is due to  the  fact  that  the  implementation  of  the
Transformation and Cost Reduction Program will continue throughout 2013,  making
it  a  transitional  year  before  PUMA  will  once  again  generate  desirable,
profitable sales growth. However, as PUMA's Transformation  and  Cost  Reduction
Program is geared towards  improving  the  company's  profitability,  management
envisages an increase in EBIT before special items in  the  low-  to  mid-single
digits while net earnings should improve significantly.

Media Relations:


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


Investor Relations:

Carl Baker - Finance - PUMA SE - +49 9132 81 3188 - carl.baker@puma.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                                                                          |


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:
Kerstin Neuber

Telefon: +49 (0)9132 81-2984

E-Mail: Kerstin.Neuber@puma.com

end of announcement                               euro adhoc 
--------------------------------------------------------------------------------


company:     PUMA SE
             PUMA Way  1
             D-91074 Herzogenaurach
phone:       +49 (0)9132 81 0
FAX:         +49 (0)9132 81-2246
mail:     investor-relations@puma.com
WWW:      http://about.puma.com/?lang=de
sector:      Consumer Goods
ISIN:        DE0006969603
indexes:     Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX, Prime All
             Share
stockmarkets: free trade: Hannover, Berlin, Hamburg, Düsseldorf, Stuttgart,
             regulated dealing: München, regulated dealing/prime standard:
             Frankfurt 
language:   English
 

 

 


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