Puma Q1 sales rise, confirms upbeat outlook

Puma’s sales growth continued in the first quarter of 2016 with an increase of 3.7 percent to 851.9 million euros (969 million dollars) or 7.3 percent currency adjusted, compared to 821.4 million euros (934 million dollars) in the previous year.

“The first quarter of 2016 developed as we expected. We saw organic growth in all segments and all regions. The development in certain currencies slowed down the reported growth in both top and bottom line,” said Bjørn Gulden, Chief Executive Officer of Puma, adding, “Despite the negative impact of currencies we confirm our outlook for the full year.”

First quarter sales increase across regions

In the EMEA region, sales grew by 3.8 percent to 354.4 million euros (402.9 million dollars) or 6.6 percent currency adjusted, with stronger growth in Germany, Austria, and France. This development was supported by a good performance of the Teamsport category prior to the UEFA Euro 2016. The company anticipates further growth in Teamsport for the second quarter leading up to the event.

Sales in the Americas region remained flat at 288.1 million euros (327.9 million dollars) in reported terms, but grew 5.4 percent on a currency adjusted basis. All major countries in the region continued to improve, while the Latin American region was strongly impacted by the weakness of its currencies, notably the Argentinian Peso.

Sales in the Asia/Pacific region recorded the highest growth rate, improving 9.8 percent or 11.2 percent currency adjusted to 209.4 million euros (238.1 million dollars). China was the strongest performer in the quarter, followed by India.

Product categories report growth in Q1

Puma’s footwear segment grew for the seventh quarter in a row. Sales rose by 3.7 percent or 8.5 percent currency adjusted to 392 million euros (445 million dollars), with strong gains in the sportstyle as well as the running and training categories, supported especially by the successful launches of women’s silhouettes. With an increase of 3.7 percent or 7 percent currency adjusted to 290.1 million euros (329.8 million dollars), the performance in apparel was also positive.

Accessories saw a rise of 4 percent or 5.1 percent currency adjusted to 169.8 million euros (193.2 million dollars) despite a continued weak golf environment. Puma’s own and operated retail sales, including e-commerce, increased 15.1 percent currency adjusted to 158.7 million euros (180.6 million dollars) representing 18.6 percent of total sales in the first quarter of 2016. This was achieved by strong like for like sales growth.

Q1 net earnings improve, outlook positive

Operating result (EBIT) was ahead of the first quarter 2015 by 10.1 percent, as sales grew stronger than operating expenses, supported by a stable gross profit margin. Net earnings improved by 4 percent to 25.8 million euros (29.3 million dollars) and earnings per share were up correspondingly at 1.73 euros (1.97 dollars) compared to 1.66 euros (1.89 dollars) in the first quarter 2015.

The company expects a currency adjusted high single digit increase of net sales, a gross profit margin on previous year’s level of 45.5 percent, an increase of currency-adjusted operating expenses in a mid to high single-digit range, and an operating result (EBIT) between 115 million euros (130.8 million dollars) and 125 million euros (142.3 million dollars).

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