10.11.2016
PUMA SE DE0006969603
DGAP-News: PUMA SE: Continued Sales Growth and Further Improvement of Operating Result in Third Quarter
DGAP-News: PUMA SE / Key word(s): Quarter Results/9-month figures
PUMA SE: Continued Sales Growth and Further Improvement of Operating Result
in Third Quarter
10.11.2016 / 08:00
The issuer is solely responsible for the content of this announcement.
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QUARTERLY STATEMENT Q3 2016
Continued Sales Growth and Further Improvement of Operating Result in Third
Quarter
Herzogenaurach, November 10, 2016
2016 Third Quarter Facts
- Sales increase by 11% currency adjusted to EUR 990 million (+8%
reported) with growth across all regions
- Improved sell-through in own retail and at key retail partners
- Gross profit margin flat at 45.8% despite stronger US-Dollar
- Moderate increase in OPEX of 4%
- Strong improvement (+47%) in operating result (EBIT) to EUR 60 million
- Great performance of PUMA athletes at the Rio Olympics with sprint star
Usain Bolt dominating the event and winning three gold medals for the
third consecutive time
2016 Nine Month Facts
- Sales up 10% currency adjusted to EUR 2,669 million (+6% reported)
based on growth across all regions and product segments
- Slight decrease of gross profit margin to 46.1%, caused by stronger US-
Dollar in 2016 compared to last year
- Improved operating leverage with OPEX increasing by only 3%
- Operating result (EBIT) up 33% to EUR 114 million
- Earnings per share at EUR 4.48 compared to EUR 2.77 last year
- Continued strong visibility of PUMA's women's category through FENTY
PUMA by Rihanna fashion shows in New York and Paris and launch of the
"DO YOU" communication platform with model, actress and activist Cara
Delevingne
Bjørn Gulden, Chief Executive Officer of PUMA SE:
"We have seen a solid improvement in the sell-through of our products at
retail in the third quarter. New product lines like the Fierce, the
Platform, the Ignite Dual and the Fenty lines have shown to be "right" for
the consumers and our marketing with personalities like Rihanna, Kylie
Jenner, Cara Delevingne and, of course the unbelievable performance of
Usain Bolt, have increased our brand heat. More consumers are buying our
new products at full price and retailers are therefore more satisfied with
us. It is now our job to use this momentum to get more of the right PUMA
products on their shelves.
Sales developed a little better than expected, gross margin came in as
expected and this combined with a strong discipline on the cost side
resulted in a nice improvement in our earnings. With three months to go we
feel confident in fulfilling our guidance and do now expect our full-year
EBIT to be in the upper half of the already communicated range of
EUR 115 million to EUR 125 million."
Third Quarter 2016
Sales:
PUMA continued on its growth path in the third quarter 2016. Sales
increased by 10.7% currency adjusted to EUR 990.2 million (+8.3% reported).
All regions contributed to this growth with EMEA and the Americas being the
main drivers. Footwear once again performed particularly well with a
currency adjusted increase of 16.4%.
The EMEA region continued its growth, supported by strong demand for
footwear products. Sales rose by 11.9% currency adjusted to EUR 408.6
million (+8.7% reported) with France and Germany being particularly strong.
Sales in the Americas region improved by 12.2% currency adjusted to EUR
342.9 million (+5.5% reported). Solid growth was delivered by both North
and Latin America. However, the weakness of Latin currencies, notably the
Argentine Peso, continued to impact the sales development in Euro terms.
The Asia/Pacific (APAC) region achieved sales of EUR 238.7 million,
representing a rise of 6.9% currency adjusted (+11.7% reported). China and
India delivered double-digit growth.
Footwear continued to drive the strongest growth among the three product
segments, showing an improvement of sales for the ninth quarter in a row.
Sales were up 16.4% currency adjusted (+12.3% reported) and amounted to EUR
458.8 million, with success coming from the Ignite franchise as well as
Fierce and Fenty products within the Running, Training and Sportstyle
categories.
Coming in at EUR 377.4 million, sales in the Apparel segment increased by
10.3% currency adjusted (+8.8% reported). Major gains were achieved in the
Sportstyle category supported by our women's business.
The development of Accessories was impacted by a weaker performance of
PUMA's accessories business in the United States. Sales decreased by 2.4%
currency adjusted to
EUR 154.0 million (-3.2% reported).
Gross Profit Margin and Operating Expenses:
In spite of the ongoing negative currency impact from a stronger US-Dollar,
PUMA managed to maintain the gross profit margin at 45.8%. This was
achieved mainly through sourcing improvements, selective price adjustments,
and an improved Footwear product mix. The Footwear margin increased by 190
basis points from 41.2% to 43.1%. The Apparel margin decreased from 49.8%
to 48.2% and the Accessories margin fell from 49.1% to 48.4%.
Operating expenses (OPEX) rose moderately by 4.1% to EUR 397.4 million.
This increase is mainly due to additional marketing costs associated with
the Olympic Games in Rio as well as the expansion of our owned and operated
retail store network. Other operating functions maintained strict cost
control and kept costs stable.
Operating Result and Net Earnings:
The operating result (EBIT) went up by 46.7% to EUR 60.3 million. This is
mainly due to the operating leverage as sales grew stronger than operating
expenses, while the gross profit margin remained flat.
Net earnings nearly doubled compared to last year's result coming in at EUR
39.5 million, representing an increase of 98.0%. This result translates
into earnings per share of EUR 2.64 compared to EUR 1.34 in the third
quarter of 2015.
Nine Months 2016
Sales:
As PUMA was able to keep up the strong momentum seen in the first half-year
2016, sales for the nine-month period improved by 10.2% currency adjusted
to EUR 2,668.5 million (+6.4% reported). The main drivers behind this
positive development were EMEA and APAC and in segment terms Footwear and
Apparel.
The growth dynamic in the EMEA region was particularly high, where sales
went up 13.2% currency adjusted to EUR 1,084.3 million (+9.8% reported).
This increase is largely due to the performance of France and the DACH area
(Germany, Austria, Switzerland) which achieved a double-digit growth.
Within the EEMEA region, Russia and South Africa performed very well.
Apparel achieved major gains, partly driven by the football business.
In the Americas region, both North and Latin America posted a solid upturn
in currency adjusted sales, increasing by 7.6% to EUR 946.6 million. In
Euro terms, however, sales grew only by 0.4%, as the weakness of currencies
in Latin America, notably in Argentina, continued to have a negative impact
on reported sales.
The development of sales in the Asia/Pacific (APAC) region was
particularly positively influenced by China, which performed strongly
across all distribution channels. The region's sales improved by 9.3%
currency adjusted to EUR 637.7 million (+10.3% reported).
All product segments performed well in the nine-month period. Footwear
improved by 11.0% currency adjusted to EUR 1,211.0 million (+5.7%
reported). This development was based on strong demand in the Running,
Training, Sportstyle and Fundamentals categories.
Apparel delivered the highest growth rate among the three product segments.
Sales came in at EUR 966.6 million, representing an increase of 12.0%
currency adjusted or 8.6% in Euro terms. All product categories contributed
to this success.
Accessories were up 5.4% currency adjusted to EUR 491.0 million (+3.8%
reported). EMEA and Asia/Pacific showed higher sales in this product
segment, while the development was negative in the Americas, caused by the
United States.
In the nine-month period, PUMA generated own and operated retail sales
(including eCommerce) of EUR 551.1 million. This is equivalent to an
increase of 11.9% currency adjusted and represents a share of 20.6% of
total sales versus last year's figure of 20.4%. The sales increase is based
on a healthy like-for-like sales growth, a higher number of retail stores
in operation as well as a significant momentum of the eCommerce business.
Gross Profit Margin and Operating Expenses:
The gross profit margin of 46.1% represents a slight decrease of 30 basis
points compared to 46.4% in the first nine months of 2015. This is solely
due to the negative currency impact on our cost of sales from the stronger
US-Dollar. The negative currency effect was partly offset by sourcing
improvements, selective price adjustments and an improved product mix in
the Footwear segment. In Footwear, the gross profit margin was up 70 basis
points at 42.8% (last year 42.1%), while in the Apparel and Accessories
segment, the margins decreased from 50.4% to 49.1% and from 49.6% to 48.1%
respectively.
Operating expenses (OPEX) increased only slightly by 3.4% and amounted to
EUR 1,127.9 million. This is the result of intensified marketing activities
for the UEFA Euro 2016 and the Olympic Games in Rio, as well as an extended
network of own and operated retail stores. All other operating functions
managed to keep costs stable.
Operating Result and Net Earnings:
The operating result (EBIT) improved significantly by 32.9% and amounted to
EUR 113.5 million. With sales growing faster than operating expenses, PUMA
was able to benefit from operating leverage.
Net earnings improved by 61.5% and came in at EUR 67.0 million (last year:
EUR 41.5 million). This result translates into earnings per share of EUR
4.48 compared to EUR 2.77 in 2015.
Working Capital
PUMA's working capital increased by only 2.8% to EUR 731.2 million despite
higher sales and business volumes as well as the extension of the retail
store network. Inventories were up 3.7% at EUR 715.0 million and trade
receivables increased by 3.3% to EUR 584.1 million, underpinning a strong
performance of working capital management.
Outlook 2016
With PUMA's positive performance over the first nine months of 2016, we
continue to expect a currency adjusted high single-digit increase of net
sales, a gross profit margin on previous year's level (45.5%), and an
increase of currency adjusted operating expenses in a mid to high single-
digit range for the full-year. In light of the operating result (EBIT)
achieved in the first nine months, we now expect the full-year EBIT to be
within the upper half of the already communicated range of EUR 115 million
to EUR 125 million.
Brand and Marketing
In July, we unveiled the first PUMA home and away kits for Mexican football
club Chivas, officially called Club Deportivo Guadalajara, one of Mexico's
two biggest clubs.
At the Summer Olympics in Rio, PUMA sprint star Usain Bolt accomplished his
"Triple Triple" by winning an Olympic Gold medal in each of the three
sprinting events. In total, ten Gold, five Silver and nine Bronze medals
were the yield of the PUMA equipped Olympic teams of Jamaica, Bahamas, Cuba
and Grenada alongside the Track & Field teams of Switzerland, the Dominican
Republic and Barbados.
In September, the first and much-awaited FENTY PUMA by Rihanna collection
came into stores worldwide. Later that month, Rihanna presented her Spring/
Summer 2017 FENTY PUMA by Rihanna collection at the Paris Fashion Week.
This second collection takes inspiration from 18th century France during
the time period of Louis XVI and fuses with a street style vibe.
In our Women's category, we launched our campaign "DO YOU", which aims to
inspire confidence in women around the world. The campaign is spearheaded
by international model, actress, and activist Cara Delevingne who joined
PUMA's growing list of influential female ambassadors. It features a cross-
category product range from PUMA's Running and Training and Sportstyle
collections.
We also announced a new partnership with Abel Tesfaye also known as The
Weeknd as a new Global Brand ambassador and creative collaborator. The
Grammy-winning artist and style icon is the perfect fit to headline PUMA's
latest Sportstyle campaign, 'Run The Streets' at the beginning of this
month.
In Motorsport, our partnered Formula 1 team MERCEDES AMG PETRONAS won the
Constructors' Championship for the third time in a row. Nico Rosberg is in
the pole position to clinch his first world championship crown at the end
of the season and is followed by the rest of PUMA-equipped drivers from Red
Bull and Ferrari in the drivers' standings.
Financial Calendar FY 2017:
February 9, 2017 Financial Results FY 2016
The financial releases and other financial information are available on the
Internet at "about.puma.com".
Media Relations:
Kerstin Neuber - Corporate Communications - PUMA SE - +49 9132 81 2984 -
[email protected]
Investor Relations:
Johan-Philip Kuhlo - Global Strategy - PUMA SE - +49 9132 81 0 - investor-
[email protected]
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.
PUMA
PUMA is one of the world's leading Sports Brands, designing, developing,
selling and marketing footwear, apparel and accessories. For over 65 years,
PUMA has established a history of making fast product designs for the
fastest athletes on the planet. PUMA offers performance and sport-inspired
lifestyle products in categories such as Football, Running and Training,
Golf, and Motorsports. It engages in exciting collaborations with renowned
design brands to bring innovative and fast designs to the sports world. The
PUMA Group owns the brands PUMA, Cobra Golf and Dobotex. The company
distributes its products in more than 120 countries, employs more than
10,000 people worldwide, and is headquartered in Herzogenaurach/Germany.
For more information, please visit http://www.puma.com
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10.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: PUMA SE
PUMA Way 1
91074 Herzogenaurach
Germany
Phone: +49 9132 81 0
Fax: +49 9132 81 2246
E-mail: [email protected]
Internet: www.puma.com
ISIN: DE0006969603
WKN: 696960
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Hanover, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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