Puma’s Q2 Revenues Climb 14.1 Percent

Hi all,
Following adidas financial figures, Puma also reports Q2 revenue increase. In the quarter, Puma’s consolidated sales of 14.1 percent currency-adjusted and 9.4 percent in Euro terms to €673.5 million ($969 mm) compared to last year, representing Puma’s best ever second quarter sales performance.

“I could not have asked for a better start to my new position as Puma’s CEO than to announce the best second quarter in Puma’s history in terms of sales, a performance that underlines our ambition to achieve our sales target of 3 billion Euros for this year,” said Franz Koch, CEO of Puma SE. “The investments into our core markets, in line with our Back on the Attack company growth strategy, have started to pay off and we will continue to strengthen our brand and product in order to become the most desirable and sustainable sportlifestyle company in the world.”

Footwear rose 16.2 percent currency adjusted to €352.6 million ($507  mm), Apparel went up 10.7 percent to €224.3 million ($323  mm) and Accessories again posted an strong 15.0 percent increase to €96.7 million ($139  mm).

In particular, Puma’s Running category grew significantly, boosted by the ongoing top seller Puma Faas, a lightweight neutral racer for tempo runs and racing. The shoe is constructed with BioRide Technology, an integrated system that provides more natural running rhythm and enhanced speed. Another Performance category that performed well in the second quarter was Cobra-Puma-GOLF as a result of synergies arising from the Cobra Golf integration.

In the Teamsport category, Puma claimed another champion title with Uruguay winning the Copa America for the 15th time, building on their fourth place at the 2010 FIFA World Cup. The team also achieved their second-ever qualification for the FIFA Confederations Cup to be held in Brazil in 2013. Uruguay beat Paraguay 3-0 in Sunday’s final, becoming the most successful team in the tournament’s history.

The FIFA Women’s World Cup in Germany provided another great opportunity, where Puma further strengthened its brand awareness in Women’s Football. Puma sponsored eight Puma players on the German team as well as international stars from England, Canada, Norway, Sweden, France and the USA as well as brand ambassador Marta of Brazil, who all sported the Puma Speed v1.11 football boot. In fact, the v1.11 scored most goals in the tournament, 16 in total.

Over the first half of this year sales across all categories increased in pace. Footwear sales were up 9.9 percent (10.9 percent currency adjusted), Apparel sales were up 7.0 percent (6.1 percent currency adjusted) and Accessories were up 29.4 percent (28.3 percent currency adjusted) partly due to the full year effect of Cobra golf.

Puma AG converts to a Societas Europaea (SE)

With the completion of the transformation on July 25th,, 2011, Franz Koch has become Chief Executive Officer, with Jochen Zeitz taking over as Chairman of the Administrative Board of Puma SE. At the same time, he will lead PPR’s Sport & Lifestyle Division. In this role, he will ensure Puma SE’s continuous and strategic growth within the framework of the next phase of development and support the drive to sustainability as PPR’s Chief Sustainability Officer.

Outlook for the Financial Year 2011

Puma continues to target the €3 billion sales mark for the full year which reflects a continuation of our first-half sales. There will, however, continue to be pressure on gross profit margins in the shape of higher raw material prices and Asian wage increases, although Puma has thus far shown an ability to keep its gross profit margins at the highest level within the industry. Despite higher operating expenditures which are in line with the overall strategy, Puma expects absolute net earnings to improve in the mid single digit range. [Source: Boardsportsource]

Karl Lusbec