DGAP-News: PUMA SE / Key word(s): Quarterly / Interim Statement/Half Year Results PRESS RELEASE Herzogenaurach, July 26, 2017 2017 Second Quarter Facts - Sales increase by 16% currency adjusted to EUR 969 million (+17% reported), with all regions showing double-digit growth and footwear being the main growth driver - Gross profit margin up by 90 basis points to 46.5% - OPEX increases by 11% caused by higher sales-related variable costs as well as higher marketing and retail investments - Operating result (EBIT) improves to EUR 43 million (last year: EUR 12 million) - Three major wins in football with Arsenal FC winning FA Cup, BVB Borussia Dortmund winning DFB cup and Chivas winning Mexican championship - PUMA's new lacing technology NETFIT introduced across performance and sportstyle footwear 2017 Half-Year Facts - Sales up by 16% currency adjusted to EUR 1,974 million (+18% reported) with double-digit growth in all regions - Gross profit margin up 60 basis points at 46.8% - Operating leverage with OPEX increasing only by 12% - Operating result (EBIT) more than doubled from EUR 53 million last year to EUR 114 million - Net earnings increase from EUR 27 million last year to EUR 72 million and earnings per share increase from EUR 1.84 last year to EUR 4.79 respectively - Continued strong women business driven by BASKET HEART and FIERCE footwear styles - Successful introduction of "Run the Streets" with IGNITE Limitless and TSUGI footwear styles featuring R&B star and style icon The Weeknd
Second Quarter 2017 The gross profit margin improved, despite negative currency effects, by 90 basis points from 45.6% in the second quarter last year to 46.5%. Operating expenses (OPEX) rose by 11.4% to EUR 410.8 million in the second quarter. The increase of operating expenses in the quarter is mainly due to higher sales-related variable costs as well as further marketing and retail investments. Costs for other operating functions grew only moderately.
The operating result (EBIT) increased from EUR 11.9 million last year to EUR 43.4 million due to strong sales growth combined with an improved gross profit margin.
Including eCommerce, PUMA's own and operated retail sales increased by 21.8% currency adjusted to EUR 430.3 million. This represents a share of 21.8% of total sales for the first half of 2017 (20.5% in the previous year). The performance was achieved by positive like-for-like growth in our existing retail stores, strong growth in our eCommerce business and opening of new additional stores. The gross profit margin improved, despite negative currency effects, by 60 basis points from 46.2% to 46.8% in the first half-year 2017. The increase was mainly due to further improvements in sourcing and selective price adjustments. Operating expenses (OPEX) increased by 11.9% and amounted to EUR 817.6 million. The increase was driven by higher sales-related variable costs, intensified marketing activities and investments in own retail stores. Costs for other operating functions grew only moderately.
The operating result (EBIT) more than doubled from EUR 53.2 million last year to EUR 113.6 million in the first half of 2017 underlining the improved operating performance, with strong sales growth, a higher gross profit margin and an improved operating leverage.
The 2016/17 Football season ended for PUMA with grabbing some of the World's biggest football trophies: while BVB Borussia Dortmund snatched the German DFB Cup, Arsenal FC claimed the FA Cup at the same weekend, and Mexico's Chivas won the 2017 Liga MX Clausura title. Last, but not least, the Cameroon national team won the 2017 Africa Cup of Nations. For the coming seasons, we have added two more football club assets to our roster of internationally renowned teams: with Olympique de Marseille and Borussia Mönchengladbach, PUMA signed two strategic long-term partnerships and strengthened its position, both in the German Bundesliga and the French Ligue 1, starting in the 2018/19 season. In Running all eyes are on the IAAF World Championships in London, which will start at the end of next week. The event will probably mark the end of the active career of living legend Usain Bolt. He will remain PUMA's brand ambassador beyond his active athletic career. Next to Usain, we expect a great performance from Canadian sprinter and PUMA ambassador Andre de Grasse, the reigning Pan American champion in the 100 metres and 200 metres. To maintain a strong presence in athletics, we have continued to increase our portfolio of Track and Field athletes by signing numerous Jamaican sprinters, among them Julian Forte and Shericka Jackson. Forte won gold with the Jamaican 4×100 metres relay team at the 2014 IAAF World Relays, while Jackson won the Bronze medal over 400 metres and silver in the 4x400 metres relay at the 2016 Summer Olympics in Rio de Janeiro. In Motorsport, our three partnered F1 teams Mercedes AMG Petronas, Scuderia Ferrari and Red Bull Racing are currently at the top of the rankings of this year's competition, both in the drivers' and the constructors' standings. We have also extended our long-term partnership with BMW Motorsport as official licensing partner for products of BMW Motorsport and supplier of BMW race teams. Strategically, we have continued to focus on our five priorities: Creating further brand heat, increasing the pace and quality of our product launches, strengthening distribution by delivering results for our key retail partners, further accelerating speed in our organization and growing our women's business across sports performance and sportstyle ranges. The improved financial results, better sell-through performance as well as the continued positive feedback from our retail partners confirm that PUMA is on the right track. To further fuel PUMA's brand heat, we have signed new sports assets as well as other cultural icons. Working with relevant influencers and letting them communicate on our behalf has become increasingly important. One of them is the cultural influencer, Grammy-nominated, multi-platinum recording artist Big Sean, whom we signed as our new Creative Collaborator and Global Ambassador. Big Sean will be working alongside PUMA's team to design an exclusive collection that's set to be released in Spring 2018 and we will see him as the face of the next PUMA Classics campaign this summer. In our Women's category, we have continued our successful "Do You" campaign around celebrities such as Cara Delevingne, the New York City Ballet and Kylie Jenner by introducing new feminine styles. We have seen strong demand for the BASKET HEART, a classic silhouette with a unique feminine touch and for the FIERCE, one of the biggest drivers behind our women's footwear business. One highlight in women's apparel has been the Velvet Rope collection, which features tech-infused Sportstyle and Training pieces for women with the perfect mixture of performance and luxury, sport and fashion. With our "Run The Streets" concept, we have offered products that cross the line between performance and style. We launched the IGNITE EVOKNIT, IGNITE Limitless and the brand-new sportstyle franchise TSUGI. All of them feature PUMA's proprietary IGNITE midsole technology, but at the same time they have a progressive fresh look inspired by urban culture and street style. Our new, unique customizable lacing system NETFIT offers infinite performance and style options and will be worn by our world class athletes at the IAAF World Championships in London. The NETFIT technology allows runners to fully adapt to their individual needs based on foot shape and running style and allows consumers to express their individual style through various lacing techniques. NETFIT has been extended into the Sportstyle category and will also be used in our football shoes 365 NETFIT and FUTURE.
Our recently introduced football boot PUMA ONE suits all aspects a player needs - FIT, FAST and FEEL. Under the mantra of 'Play Perfect' we have combined the best and latest technologies to support technical players with the ideal equipment. We have continued to upgrade our owned and operated retail store network with further openings and refurbishments, such as the full price store on Carnaby Street in London and also introduced a new store concept for factory outlets. In addition, we are relaunching our eCommerce presence 'puma.com' in a more modern and mobile-friendly format, and as a first step, we went live with our new European website in June. Financial Calendar FY 2017:
April 12, 2017 Annual General Meeting April 25, 2017 Quarterly Statement Q1 2017 July 26, 2017 Interim Report Q2 2017 October 24, 2017 Quarterly Statement Q3 2017 The financial releases and other financial information are available on the Internet at "about.puma.com". Media Relations: Investor Relations: Notes to the editors: - The financial reports are posted on www.about.puma.com. - PUMA SE stock symbol:
Reuters: PUMG.DE, Bloomberg: PUM GY, Notes relating to forward-looking statements:
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
26.07.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | PUMA SE |
PUMA Way 1 | |
91074 Herzogenaurach | |
Germany | |
Phone: | +49 9132 81 0 |
Fax: | +49 9132 81 2246 |
E-mail: | investor-relations@puma.com |
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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