World Footwear

Companies

Puma’s third quarter sales improve

Nov 27, 2014
Puma’s third quarter sales improve
Negative impact of volatile currencies continues to be a key element in Puma’s business; however the company managed to consolidate sales in the third quarter
“In a good third quarter, Puma achieved sales that were slightly better than expected. Footwear sales were up for the first time in seven quarters, and operating profits met our expectations. The launch of the Forever Faster marketing campaign was well received by both consumers and retailers. We told our consumers that Puma is back and showed our retail partners that we deliver on our promises by investing in media campaigns.... In addition, we have now defined the key priorities which will mark the start of our IT infrastructure upgrade, laying the foundations for a fast, lean and efficient company in the future”, Bjørn Gulden, Chief Executive Officer of Pume SE commented.

Puma’s 2014 third quarter sales performance was positive, as consolidated sales rose by 6.4% currency adjusted to 843 million euros, representing an increase of 3.7% in euro terms, as continuing currency effects from various countries had a negative impact on sales.

Puma’s performance during the third quarter was stronger in all regions and markets. Sales in the EMEA region increased by 4.4% (currency adjusted to 388 million euros), with the performance improving in Western Europe, with a special note to Germany, where the new Borussia Dortmund jerseys were well received, as well as Switzerland and France, as sales of Teamsport and Lifestyle products rose.

Sales increased by 6.3% (currency adjusted to 265 million euros) in the Americas, as North America continued to benefit from improved wholesale business, including key account initiatives like the Puma Labs at Foot Locker. Sales in Latin America also rose, supported by a strong Teamsport business within the region.

Asia Pacific sales grew by 10.7% (currency adjusted to 191 million euros), with growth spread across all key markets, including India, China, Korea and Japan. Such was supported by “the successful start of the Forever Faster brand campaign, the positive reception of PUMA’s new Arsenal jerseys and a strong accessories business”, according to the company.

The performance across all product segments was positive, with footwear sales rising by 2.0% (currency adjusted to 374 million euros), while apparel and accessories sales rose by 11.4% and 7.5% respectively.

Puma’s consolidated net earnings declined from 53 million euros to 29 million euros, resulting in declining earnings per share (from 3.53 euros in similar period last year to 1.93 euros in the current year).

Currency adjusted sales rose by 2.4% for the first nine months of the year reaching 2.2 billion euros. As currency volatility continued to have a negative impact in the third quarter, albeit to a lesser extent, nine month sales in euro terms declined by 2.9%. Performance was positive across all regions in the period. In terms of product segments, footwear sales declined by 4.4%, while apparel and accessories both had increases in sales. Consolidated net earnings fell from 121 million euros to 69 million euros for the first nine months of 2014, with earnings per share declining from 8.07 euros to 4.59 euros.

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