06.05.2015
PUMA SE DE0006969603
DGAP-News: PUMA SE: First Quarter Sales Show Growth of PUMA
DGAP-News: PUMA SE / Key word(s): Quarter Results
PUMA SE: First Quarter Sales Show Growth of PUMA
06.05.2015 / 08:33
---------------------------------------------------------------------
PRESS RELEASE
First Quarter Sales Show Growth of PUMA
Currency effects weigh on reported margins
Herzogenaurach, May 6, 2015
2015 First Quarter Facts
- Sales up by 4.4% currency-adjusted (+13.2% reported) to EUR 821
million, growth across all regions and mainly driven by Footwear
- Gross profit margin down, solely due to foreign currency impacts
- OPEX increase because of marketing expenses, investments in IT, opening
of new retail stores, also strongly impacted by unfavorable currency
rates
- EBIT stands at EUR 38 million
- PUMA IGNITE running shoe technology successfully launched in February
- Outlook adjusted to reflect currency impact
Bjørn Gulden, Chief Executive Officer of PUMA SE: "PUMA's first quarter
sales grew slightly stronger than expected. This was mainly caused by a
very positive development in footwear. We are working very hard to improve
our product offer, and although we know we have some ways to go, we feel
that this growth in footwear confirms that we are on the right path.
The negative development in currencies, had a significant negative impact
on our gross profit margin and operational expenses and therefore also on
our EBIT and net earnings. We do work hard to "counter" these negative
currency effects, but do currently not have enough leverage to fully
neutralize the impact and have therefore adjusted our outlook for the full
year EBIT and net earnings.
We will continue our strategy to become the Fastest Sports Brand in the
World and will continue to invest in Product, Marketing, Retail and IT to
lay the foundation for solid profitable growth in the future."
Sales growth in the first quarter
PUMA's first quarter sales performance in 2015 was slightly ahead of our
expectations. Currency-adjusted sales increased by 4.4% to EUR 821 million.
In reported terms, this corresponds to a growth of 13.2%.
Positive sales development in all regions
Sales in the EMEA region rose by 0.2% currency-adjusted to EUR 342 million.
Southern European countries developed positively in the first quarter,
while the United Kingdom saw a decline due to a softer Lifestyle business.
The Middle East and Africa regions continued to show a solid performance in
most of the countries and across all categories.
In the Americas region, sales grew by 5.6% currency-adjusted to EUR 289
million, with both North America and Latin America developing positively.
Asia/Pacific sales increased by 10.9% currency-adjusted to EUR 191 million
with strong performance in China and India supported by the improved
Footwear business.
Footwear leads segment performance in the first quarter
Footwear sales increased by 7.8% currency-adjusted to EUR 378 million. This
was driven by a higher demand for PUMA's Running, Training & Fitness
products, which was partly triggered by the successful launch of the PUMA
IGNITE running shoe in mid-February.
Apparel sales increased by 5.7% currency-adjusted to EUR 280 million. A
strong demand for PUMA's Fundamentals, Running, Training & Fitness and Golf
products underpinned this good performance.
Accessories sales decreased by 4.6% currency-adjusted to EUR 163 million.
This is related to lower sales of socks and bodywear in the North American
market.
Satisfying retail performance
PUMA's first quarter Retail sales increased by 7.3% on a currency-adjusted
basis to EUR 144 million, with comparable sales in full-price stores and
outlets slightly up. PUMA also operated a higher number of stores. Retail
sales represented 17.5% of total sales compared to 17.1% last year.
Negative currency impacts affect gross profit margin
PUMA's gross profit margin declined from 48.5% to 46.9% in the first
quarter, solely due to negative currency impacts. The strength of the US
Dollar compared to major "unhedged" and not fully hedged currencies
including Russian Ruble, Mexican Peso, Brazilian Real, Turkish Lira and
Argentinian Peso led to this decrease. The Footwear gross profit margin
declined from 44.1% to 42.9%. Apparel decreased from 53.6% to 50.7%, and
Accessories remained at previous year's level of 49.6% (Q1 2014: 49.7%). In
absolute figures, gross profit increased by 9.3% in reported terms from EUR
352 million to EUR 385 million.
Higher OPEX in line with expectations
As communicated previously, PUMA continued to invest in the "Forever
Faster" marketing campaign in the first quarter 2015. There was no major
campaign in the first quarter in 2014. In addition, we have started to
invest in our IT infrastructure and we continued with our retail strategy
to open additional retail stores, mainly in emerging markets. As with the
gross profit margin, OPEX was heavily impacted by the unfavorable currency
developments. As a consequence, PUMA's OPEX increased by 17.7% to EUR 351
million. PUMA's management continues to put a strong emphasis on strict
control of other operating costs. In constant currencies, the increase in
OPEX amounts to 9.5%.
Operating result (EBIT) declines
Despite the sales growth in the first quarter 2015, the lower gross profit
margin and increased operating expenditures both impacted by negative
currency developments led to a decrease of PUMA's operating result (EBIT)
from EUR 59 million to EUR 38 million. The EBIT ratio decreased from 8.1%
to 4.6%.
Financial result improves
The financial result improved from EUR -3.2 million to EUR 0.9 million in
the first quarter. The result turned positive due to currency conversion
impacts.
Net earnings decrease
PUMA's consolidated net earnings declined by 30.3% from EUR 36 million to
EUR 25 million. As a result, earnings per share decreased from EUR 2.38 to
EUR 1.66 in the first quarter of the year.
Net Assets and Financial Position
Working capital rose in line with sales
Inventories increased by 23.7% (11.9% currency adjusted) to EUR 648 million
due to earlier deliveries in order to better service our key strategic
accounts. Trade receivables increased by 17.9% (6.2% currency adjusted) to
EUR 596 million compared to 31 March 2014, which was driven by higher
sales. Trade payables were similarly affected by currency exchange rates
and increased by 36.7% to EUR 467 million. As a result, PUMA's working
capital rose by 10.6% from EUR 674 million to EUR 745 million at the end of
March 2015.
Cashflow / Capex
The free cashflow before acquisitions declined to EUR -233 million mainly
due to lower cashflows from operating activities as a result of the
increased working capital.
Capex increased from EUR 12 million to EUR 16 million, which was mainly
invested in the opening of selected retail stores as well as IT equipment.
Stable cash position
PUMA's cash and cash equivalents position at EUR 295 million as of 31 March
2015 remained broadly stable at last year's level of EUR 301 million.
Brand and Product Update
Following the launch of our latest running innovation PUMA IGNITE by the
World's Fastest Man Usain Bolt on New York City's Times Square, the
sell-through of this innovative footwear technology has been off to a good
start both in retail and wholesale. The innovative IGNITE foam technology
offers the highest energy return in the industry and strongly represents
our new "Forever Faster" positioning.
In order to further strengthen our dominant position in Motorsport, we
recently announced a new long-term Formula 1 partnership with INFINITI RED
BULL RACING. Effective 1 January 2016, we will be the official, licensed
supplier of team and race wear. In addition, we will exclusively produce
and distribute INFINITI RED BULL RACING licensed replica, fanwear and
lifestyle collections for global distribution. We will also prominently
feature INFINITI RED BULL RACING in our brand and motorsport marketing
campaigns in 2016 and beyond.
Our partnership with Red Bull will span beyond Formula 1 racing. We have
also signed a new multi-year partnership with the "Wings for Life World
Run", which was co-founded by Red Bull founder Dietrich Mateschitz to fund
scientific research for spinal cord injuries. This will serve as a platform
to promote our IGNITE running and CELL apparel technology. As the exclusive
official sportswear partner, event staff and athletes participating in the
Wings for Life World Run sported PUMA footwear, apparel and accessories.
100% of all starting fees and donations will go directly to spinal cord
research.
Our Teamsport category saw the extension of one of PUMA's longest-standing
and most successful partnerships in Football: through our new long-term
contract with the Italian Football Federation (FIGC), PUMA has increased
its marketing rights as well as retained the exclusive Master License to
actively manage the entire global licensing portfolio of the Federation.
PUMA, who first became partner of "Gli Azzurri" in 2003, will also continue
as the official technical supplier to all associated FIGC teams.
In March, PUMA won the "2014 Marketing Leader Award" from Foot Locker
Europe. The award has recognized PUMA's "Forever Faster" marketing
campaign, which was launched in Autumn/Winter 2014 and the growth of brand
awareness through the effective use of advertising, public relations and
event marketing. This underlines the impact of our "Forever Faster"
campaign and the close collaboration with our retail partners.
Strategy Update
We have made further progress towards becoming the Fastest Sports Brand in
the World. We have launched successful products for this year's Spring
Summer season, including our new IGNITE running technology. Over the coming
seasons we will continue to develop the IGNITE platform with innovations,
material updates and product launches supported by dedicated media
activities.
We have said that we would enhance our product communication, telling
better and simpler stories to the consumers and utilize our assets. This
promise is reflected in our ongoing marketing campaign "Forever Faster".
The current theme is more product-focused and features Usain Bolt running
in the IGNITE as well as star-footballers including Mario Balotelli and
Cesc Fàbregas in action with our latest football boot innovation evoPOWER.
Our new multi-year partnership with Rihanna has already generated a lot of
positive PR and social media buzz. Rihanna is an ideal brand ambassador,
thanks to both her personality and iconic style. She is currently featured
in an in-store marketing campaign promoting PUMA's key training styles of
the season. In August, Rihanna will also play a key role in the brand
campaign Forever Faster, featured along PUMA's world-class athletes such as
Usain Bolt and Sergio Aguero. Later she will be the Creative Director for
her own line of training & lifestyle products.
In terms of improving the quality of our distribution, our sales
organizations are working hard to intensify our relationships with key
strategic accounts as well as building new partnerships with strong
retailers in both established and emerging markets. Amongst others we have
continued our collaboration with Foot Locker and opened the first European
PUMA Lab at the Foot Locker store in Milan in February. We have also added
new locations to their US portfolio in Philadelphia and Atlanta.
As for PUMA's own retail, we have developed a new instore concept which
will ensure that our PUMA stores better tell our product stories, reveal
the technologies behind them and strengthen PUMA's positioning as a sports
brand. Last month, we started the global roll-out with our PUMA store in
Herzogenaurach. It will continue to be implemented in our stores
world-wide, with the shops in Hong Kong and Mexico City being next in line.
Continuing our efforts to improve and expand our online presence, we have
expanded the selection of our eCommerce website to include our more
exclusive PUMA Select products as of May.
We continue to work on simplifying our organizational structure and setup.
In Indonesia we have transitioned from a distributor to a new subsidiary
which will improve our presence in this important market. In terms of our
IT enhancement, we continue to work on our focus areas including
standardized ERP systems, overall IT infrastructure and also tools to
enable more efficient design and planning processes. These investments are
essential in order to achieve our vision of becoming the Fastest Sports
Brand in the World. We will continue to drive our growth strategy forward
with better, and faster collections, continued investments into our brand,
our organization, our distribution and our IT infrastructure.
Outlook for the Financial Year 2015
In 2015, PUMA will continue its strong marketing investments to further
enhance and reinforce our brand positioning, making a further step in
getting PUMA back on a path of more profitable and sustainable growth.
After the positive sales development in the first quarter 2015, we continue
to expect an increase in the medium single-digit range for full-year
currency-adjusted net sales.
However, as already indicated in the outlook for 2015 at the beginning of
this year, the continued adverse developments of foreign exchange rates
during the recent months, particularly the strengthening of the US Dollar
versus nearly all other currencies, had a significant negative impact on
PUMA's reported gross profit margin. PUMA has already taken and will
continue to take countermeasures, but the impact will not fully offset the
negative currency impact on the gross profit margin. As a consequence, we
now foresee a drop in the gross profit margin for the full year in a range
of 100 to 150 basis points versus last year (2014: 46.6%).
As announced at the beginning of this year, we will continue to invest
strongly in marketing, in the upgrade of PUMA's current IT infrastructure
and the extension of our own retail store network. This will result in an
increase in OPEX, that will be further exacerbated by negative currency
impacts. At the same time, PUMA's management will continue to put a strong
emphasis on strict control of other operating costs.
As a consequence of the now expected drop in gross profit margin and
adverse currency effects on OPEX, we now expect EBIT for the full year to
come in at a range between EUR 80 million and EUR 100 million. Net earnings
will be impacted accordingly.
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 3170 -
[email protected]
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.
PUMAPUMA 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, Training and Fitness, Golf, and Motorsports. It engages in exciting collaborations with renowned design brands such as Alexander McQueen and Mihara Yasuhiro to bring innovative and fast designs to the sports world. The PUMA Group owns the brands PUMA, Cobra Golf, Tretorn, Dobotex and Brandon. 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 --------------------------------------------------------------------- 06.05.2015 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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; Terminbörse EUREX End of News DGAP News-Service --------------------------------------------------------------------- 353507 06.05.2015
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
PUMA SE ISIN: DE0006969603 können Sie bei EQS abrufen
Mode/Textil , 696960 , PUM , XETR:PUM