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Puma with positive sales performance

May 7, 2015 Germany
Puma with positive sales performance
Despite the negative impact of currency fluctuations in the company's results, sales continue to grow (4.4%). Footwear segment with good performance 
Bjørn Gulden, Chief Executive Officer stated: “PUMA´s first quarter sales grew slightly stronger than expected. This was mainly caused by a very positive development in footwear. We are working very hard to improve our product offer, and although we know we have some ways to go, we feel that this growth in footwear confirms that we are on the right path”.

The same source confirmed that insufficient leverage capacity to neutralize negative development in currencies resulted in unfavourable impact on the gross profit margin, operational expenses and net earnings.

PUMA’s first quarter sales performance was slightly ahead of the company's expectations, with currency-adjusted sales increasing by 4.4% to 821 million euros. In reported terms, this corresponds to a growth of 13.2%.

Sales in the EMEA (Europe, Middle East, Africa) region rose by 0.2% currency-adjusted to 342 million euros. Southern European countries developed positively in the first quarter, while the United Kingdom saw a decline due to a softer Lifestyle business. The Middle East and Africa regions continued to show a solid performance in most of the countries and across all categories.

In the Americas region, sales grew by 5.6% currency-adjusted to 289 million euros, with both North America and Latin America developing positively.

Asia/Pacific sales increased by 10.9% currency-adjusted, totaling 191 million euros, with strong performance in China and India supported by the improved footwear business.

Footwear sales increased by 7.8% currency-adjusted, reaching 378 million euros. This was driven by a higher demand for PUMA’s Running, Training & Fitness products, which was partly triggered by the successful launch of the PUMA IGNITE running shoe in mid-February.

Apparel sales increased by 5.7% currency-adjusted, totalling 280 million euros. A strong demand for PUMA’s Fundamentals, Running, Training & Fitness and Golf products underpinned this good performance.
Accessories sales decreased by 4.6% currency-adjusted (163 million euros), driven by lower sales of socks and bodywear in the North American market.

PUMA’s first quarter retail sales increased by 7.3% on a currency-adjusted basis, totaling 144 million euros, with comparable sales in full-price stores and outlets slightly up. PUMA also operated a higher number of stores. Retail sales represented 17.5% of total sales compared to 17.1% last year.

PUMA’s gross profit margin declined from 48.5% to 46.9% in the first quarter, solely due to negative currency impacts, reflecting declines in gross profit margin in the three segments, footwear (44.1% to 42.9%), apparel (53.6% to 50.7%) and accessories (49.7% to 49.6%).

PUMA’s consolidated net earnings declined by 30.3% from 36 million euros to 25 million euros, resulting in declining earnings per share (going from 2.38 euros to 1.66 euros).

After the positive sales development in the first quarter 2015, the sportswear giant continues to expect an increase in the medium single-digit range for full-year currency-adjusted net sales. At the same time, the group confirmed investments in Product, Marketing, Retail and IT as they aim to become the Fastest Sports Brand in the World.

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