27.07.2016
PUMA SE DE0006969603
DGAP-News: PUMA SE: Sales Growth and improved Operating Result in Second Quarter
DGAP-News: PUMA SE / Key word(s): Quarterly / Interim Statement/Half Year
Results
PUMA SE: Sales Growth and improved Operating Result in Second Quarter
27.07.2016 / 08:00
The issuer is solely responsible for the content of this announcement.
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PRESS RELEASE
Sales Growth and improved Operating Result in Second Quarter
Herzogenaurach, July 27, 2016
2016 Second Quarter Facts
- Sales improve by 13% currency adjusted to EUR 827 million (+7%
reported) with growth across all product segments
- Gross profit margin declines to 45.6%, negatively affected by stronger
US-Dollar
- Moderate increase in OPEX of 3%
- Operating result (EBIT) improves by 75% to EUR 12 million
- Great visibility of PUMA in the UEFA Euro 2016 with five national teams
wearing PUMA jerseys and PUMA player Antoine Griezmann being the top
scorer and Player of the Tournament
2016 Half-Year Facts
- Sales up by 10% currency adjusted to EUR 1,678 million (+5% reported)
with growth in all product segments and regions
- Gross profit margin decreases slightly to 46.2% due to negative
currency impacts
- Operational leverage with OPEX increasing by 3% only
- Operating result (EBIT) rises by 20% to EUR 53 million
- Earnings per share improve by 28% to EUR 1.84
- PUMA Women's category further strengthened by continued launches of
products such as the PUMA Fierce and new partnership with New York City
Ballet
Bjørn Gulden, Chief Executive Officer of PUMA SE:
"We are happy with the development in the second quarter. Sales developed
as expected with double-digit organic growth. Gross profit margin continued
to be under pressure due to the strong US-Dollar, but based on good cost
discipline, we achieved operational leverage and saw nice improvements in
both EBIT and net earnings.
We continue to see better sell-out of our products in the stores, as we
feel consumers are getting more interested in our brand and products again.
Meanwhile, we continue to work hard with the leading retailers in order to
secure more and better space in their stores.
We felt that our teams and players in Euro 2016 in France gave us a lot of
good visibility. We now see that our women initiatives with products and
marketing around Rihanna and Kylie Jenner are working very well. Finally,
we are looking forward to great Olympic days in Rio where fantastic
athletes like Usain Bolt will be wearing our innovative and design driven
products."
Second Quarter 2016
Sales:
PUMA's sales growth continued in the second quarter 2016. Sales improved by
12.8% currency adjusted to EUR 826.5 million (+7.0% reported) with all
segments contributing to this positive development.
The EMEA region performed extraordinarily well, posting a double-digit
growth rate of 23.5% currency adjusted to EUR 321.3 million (+18.8%
reported). All countries within the region showed strong performances,
especially in the Teamsport category which gained extra momentum due to the
UEFA Euro 2016.
In the Americas region, sales increased by 5.0% currency adjusted to EUR
315.6 million with growth in North- and Latin America. In Euro terms,
however, sales decreased by 3.9%, as the weakness of currencies in Latin
America, notably in Argentina, had a negative impact on reported sales.
The Asia/Pacific (APAC) region performed well with sales increasing by
10.3% currency adjusted to EUR 189.6 million (+9.1% in Euro terms). China
was the main driver of this positive development.
Footwear was able to continue its growth path. Sales came in at EUR 360.2
million, representing an increase of 7.3% currency adjusted (+0.4%
reported). Especially Sportstyle, Fundamentals and Teamsport achieved major
gains.
Apparel posted the highest growth rate among the three product segments,
improving by 19.5% currency adjusted to EUR 299.1 million (+13.6%
reported). This excellent result derives mainly from the success of the
Teamsport category, fuelled by the UEFA Euro 2016 and high growth in other
product categories.
Sales in Accessories improved by 14.1% currency adjusted to EUR 167.1
million (+10.9% in Euro terms), driven by a higher demand for backpacks and
headwear amongst others.
Gross Profit Margin and Operating Expenses:
The negative currency impact from the stronger US-Dollar continued to put
pressure on the gross profit margin, resulting in a decrease of 110 basis
points to 45.6%, which is reflected in all product segments: The Footwear
gross profit margin softened slightly from 42.3% to 41.9%, the Apparel
margin fell from 50.7% to 49.5% and the Accessories margin declined more
strongly, mainly due to the difficult golf market, from 50.0% to 46.6%.
Operating expenses (OPEX) increased only by 3.2% to EUR 368.8 million. The
increase is mainly due to investments in PUMA retail stores and additional
marketing activities associated with the UEFA Euro 2016. Other operating
areas and functions kept the costs stable.
Operating Result and Net Earnings:
The operating result (EBIT) improved by 75.1% to EUR 11.9 million. The main
reason for this is the sales growth combined with the only moderate
increase in operating expenses.
Net earnings amounted to EUR 1.6 million compared to a loss of EUR -3.3
million last year, translating into earnings per share of EUR 0.11 after a
loss of EUR -0.22 in the second quarter of 2015.
First Half-Year 2016
Sales:
Based on two good quarters, sales for the first half-year 2016 improved by
9.9% currency adjusted to 1,678.4 million (+5.3% reported). The main driver
was the strong performance in the EMEA and APAC regions. This sales
development supports our full-year guidance of a high single-digit growth
of currency adjusted net sales.
Sales in the EMEA region showed the highest increase, rising by 14.0%
currency adjusted to EUR 675.7 million (+10.4% in Euro terms), with France
and the DACH area (Germany, Austria, Switzerland) having developed
particularly well. From a product perspective, all three product segments
recorded double-digit growth.
In the Americas region, sales rose by 5.2% currency adjusted to EUR 603.6
million (-2.2% reported). North- and Latin America contributed to this
positive development. However, negative currency effects in Latin America,
notably in Argentina, continued to impact the sales development in Euro
terms.
The Asia/Pacific region was also a strong driver of the overall growth of
PUMA in the first half of 2016. Sales were up by 10.8% currency adjusted to
EUR 399.0 million (+9.4% reported). China recorded a double-digit growth
rate and Japan also showed a solid upturn. This positive development was
supported by strong demand for PUMA Footwear in the region.
Sales in PUMA's Footwear segment amounted to EUR 752.2 million,
representing an improvement of 7.9% currency adjusted (+2.1% reported).
Especially Sportstyle and Fundamentals achieved major gains.
Apparel grew by 13.0% currency adjusted to EUR 589.2 million (+8.5%
reported), contributing the major part of the overall sales increase. The
strong performance is mainly due to the ongoing success of Teamsport as
well as Running & Training products.
Accessories sales rose by 9.4% currency adjusted to EUR 336.9 million
(+7.3% in Euro terms), driven by a higher demand for backpacks and headwear
amongst others.
Including eCommerce, PUMA's own and operated retail sales increased by
12.2% currency adjusted to EUR 344.7 million. This represents a share of
20.5% of total sales for the first half of 2016 (20.2% in the previous
year). The reasons for this rise are a healthy like-for-like sales growth
and the extension of our retail store network, as well as a growing
eCommerce business.
Gross Profit Margin and Operating Expenses:
At 46.2%, the gross profit margin was 60 basis points below last year's
46.8%, solely due to the negative currency impact on our cost of sales from
the stronger US-Dollar. Despite this impact the margin for the Footwear
segment improved slightly from 42.6% to 42.7% thanks to a better product
mix, whereas margins for the Apparel as well as for the Accessories
segments went down from 50.7% to 49.7% and from 49.8% to 47.9%
respectively.
Operating expenses (OPEX) amounted to EUR 730.5 million in the first half
of 2016, being up moderately by 3.1%. The slightly higher costs compared to
2015 derive from intensified marketing activities and retail upgrades,
while other operating areas and functions were able to keep the costs
stable.
Operating Result and Net Earnings:
At EUR 53.2 million, the operating result (EBIT) for the reporting period
came in 20.1% higher than in 2015. This is due to the operational leverage
as sales increased stronger than operating expenses.
At EUR 27.4 million, net earnings also improved by 27.6% (prior year: EUR
21.5 million). As a consequence, earnings per share went up to EUR 1.84
versus EUR 1.44 in the last year.
Working Capital and Cashflow
Working Capital:
As at the balance sheet date, PUMA's working capital amounted to 658.2
million, increasing only by 2.9% compared to June 30, 2015, in spite of
higher sales and business volumes. This development in working capital is
the result of an increase of inventories (+9.0%) combined with a slight
reduction of trade receivables (-1.6%) and a moderate increase of trade
payables (+2.7%).
Cashflow:
The free cash flow before acquisitions improved significantly by 40.1%
amounting to
EUR -100.5 million.
Outlook 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%), an increase
in currency adjusted operating expenses in a mid to high single-digit range
and an operating result (EBIT) between EUR 115 million and EUR 125 million.
Brand and Product Update
The UEFA Euro 2016 in France proved to be a great stage to showcase PUMA as
an innovative and design driven sports brand. With an on-field presence of
almost 40% across all matches, PUMA's five participating teams secured a
strong visibility with their kits featuring our apparel technology ACTV
Thermo-R. While Switzerland and Slovakia reached the round of sixteen
following passionate and decisive appearances, Italy made it to the quarter
final beating former European Champion Spain. A clear highlight was
France's Antoine Griezmann, who was voted Player of the Tournament by the
UEFA after being the top scorer with six goals that he shot in his dual
coloured PUMA Tricks boots. PUMA player Olivier Giroud was ranked third in
the scoring table of the event, while European Champion Portugal's Rui
Patricio emerged as the Goalie of the Tournament. They all sported the
yellow-pink boots on the pitch, in addition to players like Cesc Fàbregas,
Nolito, Gianluigi Buffon, Giorgio Chiellini, Adam Lallana and Grzegorz
Krychowiak.
In the English Premier League, Leicester City Football Club made the
unthinkable happen at the end of the season in May. The "Foxes" became the
first PUMA team to take the Premier League title after an extraordinary
season, while PUMA-sponsored Arsenal FC secured the second rank. Both teams
qualified for the UEFA Champions League.
In the run-up to the Olympic Games in Rio this August, PUMA signed a
partnership with the Athletics Association of Barbados (AAB) as the
supplier of performance race and training wear along with all the
federation apparel needs through the next major championships. With
Jamaica, Cuba, Grenada, Dominican Republic and the Bahamas already in
PUMA's Carribbean stable, signing Barbados continues a focus on an area of
the world where fast reigns supreme. The Barbados Track & Field team will
first wear PUMA apparel in Rio, with the deal seeing PUMA support the
Caribbean nation through the next two IAAF World Championships.
In our Motorsport category, PUMA released the latest edition to its DISC
footwear franchise, the futuristic looking metallic silver BMW X-CAT DISC.
This striking shoe showcases PUMA's reinvented DISC technology of internal
wires that tighten the upper, which was originally launched in 1991 and
provides ultimate comfort and a snug fit. In Formula One, our three
partnered teams Mercedes AMG Petronas, Scuderia Ferrari and Red Bull Racing
are currently holding the top ranks in both the drivers' and the
constructors' standings in this year's supberb season so far.
In our Running category, we continued to expand our successful IGNITE
franchise: the all-new IGNITE Dual for Autumn-Winter 16. It provides
ultimate flexibility and cushioning for mid- and long-distance runners,
thanks to the special sole with IGNITE FOAM and grooves. It is also
available in IGNITE Dual Disc and IGNITE Dual evoKnit iterations.
Strategy Update
In the first half of 2016, PUMA continued to make inroads into becoming the
Fastest Sports Brand in the World. The two major football tournaments -
Copa America and the UEFA Euro 2016 - on the one side and the further
accelerated success of our women's initiative "The Future is Female" on the
other were the dominating factors for us.
With our five sponsored teams as well as our high profile players sporting
our new PUMA TRICKS boots and gloves, PUMA achieved great visibility
through these events. We have been leveraging this momentum with our key
retail partners. Building on the impressive sell-through results of TRICKS
during the 2014 world cup, we generated healthy sell-in of TRICKS this
year. Many key retailers including Intersport, Dick's Sporting Goods and
Kamo supported them with very visible in-store executions.
The overwhelming reactions to our FENTY PUMA by Rihanna runway show during
the New York Fashion Week and especially the social media buzz further
strengthened the FENTY footwear launches. The FENTY Trainer and the
CREEPER's new color ways were sold out in days, the Fur Slide in hours or
minutes. In a partnership with Kylie Jenner, a key influencer for young
women in the US and new PUMA brand ambassador, PUMA has launched another
revolutionary silhouette, the FIERCE performance training shoe. All of
these products generated great sell-in and sell-out results, which continue
to strengthen our relationship with key retailers. This includes Foot
Locker's women-only banner SIX:02, that has decided to dedicate additional
space to PUMA shop-in-shops in their stores.
In June, we announced our partnership with New York City Ballet (NYCB), one
of the leading dance companies in the world, as their official off-stage
active wear partner. Starting in October 2016, a number of dancers from the
New York City Ballet will be featured in several PUMA creative and
marketing campaigns that will highlight women in sports and culture. In
addition, PUMA and New York City Ballet will explore ways for PUMA to
support a variety of NYCB initiatives, including the ballet company's
education, audience development and dancer health and wellness efforts.
PUMA strongly believes in the power of sports that improves people's health
around the world every day. As we want to make a difference in the lives of
people, including the most disadvantaged ones, we have partnered with Right
To Play. Right To Play is a global organization, founded by four-time
Olympic gold medalist Johann Olav Koss, and uses the transformative power
of play to educate and empower children facing adversity. This year PUMA
supports Right To Play with a donation and delivery of equipment such as
10,000 footballs to children in need.
Financial Calendar FY 2016:
February 18, 2016 Financial Results FY 2015
April 29, 2016 Quarterly Statement Q1 2016
May 4, 2016 Annual General Meeting
July 27, 2016 Interim Report Q2 2016
November 10, 2016 Quarterly Statement Q3 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.
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27.07.2016 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.
The DGAP Distribution Services include Regulatory Announcements,
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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;
Terminbörse EUREX
End of News DGAP News Service
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