Home / Knowledge / News / Apparel/Garments / Apparel sales broadly flat at Puma in Q2
Apparel sales broadly flat at Puma in Q2
27
Jul '15
For the second quarter ended June 30, 2015, apparel sales at German sports goods and sportswear marketer Puma were broadly flat at € 263.3 million from the same quarter of previous year.

“This is against high comparables in the second quarter 2014, when sales in replica jerseys driven by the FIFA World Cup were particularly strong,” Puma said in a press release.

Accessories sales grew 3.6 per cent currency adjusted year over year to €150.7 million and developed in line with its expectations.

However, footwear revenues increased for the fourth quarter in a row, soaring by 16.2 per cent currency adjusted over the second quarter of 2014 to €358.8 million.

“This development was mainly driven by the Running, Training and Sportstyle categories and especially the Puma Ignite product platform,” the German company added.

In the second quarter of 2015, Puma's consolidated sales improved 7.6 per cent currency adjusted year on year to €772.7 million, while in reported terms, consolidated sales rose higher at 18.5 per cent.

This positive development which was also above its expectations was primarily driven by the growth in footwear sales across all regions.

According to Puma, gross profit margin was stable at 46.7 per cent year on year, despite significant negative currency effects.

In footwear, gross profit margin fell slightly from 42.7 per cent to 42.3 per cent, apparel margin rose from 48.2 per cent to 50.7 per cent, while margin for accessories too dipped from 52.4 per cent to 50.0 per cent.

Second quarter of 2015, operating expenditure significantly impacted by adverse currency effects, saw a surge of 20.4 per cent in reported terms, rising to €357.4 million.

During the reporting quarter, it said, it continued to invest heavily in marketing activities to strengthen Puma's positioning as the fastest sports brand in the world.

The main cause for the increase was higher media spend and the partnerships with global sports and pop culture icons Rihanna and Arsenal, which both commenced in the second half of 2014.

The opening of new retail stores at selected locations and investing into IT related infrastructure also contributed to the increase of OPEX in the second quarter.

The rise in operating expenses however led to a decrease of operating income (EBIT) from €12.6 million in the quarter under review to €6.8 million in the prior year second quarter.

The financial result in the second quarter further slipped to a loss of €5.7 million from a loss of €1.3 million in last year's second quarter due to unfavorable impacts from currency conversion.

Net loss for the second quarter of 2015 reached €3.3 million resulting in loss per share of €0.22 in the reporting quarter.

To ensure product availability and support sales growth as well as a higher demand from new stores, inventories rose 20.6 per cent year on year to €704.5 million.

Puma's cash and cash equivalents went up from €300.0 million to €337.9 million, while borrowings increased due to the higher working capital requirements as part of its short term financing activities. (AR)

Fibre2Fashion News Desk - India

Must ReadView All

Textiles minister Smriti Irani at a press conference with minister of state for textiles, Ajay Tamta, the principal director general (M&C), PIB, AP Frank Noronha and other dignitaries. Courtesy: PIB

Apparel/Garments | On 23rd May 2017

Special package for knitwear coming soon: Irani

Union textiles minister Smriti Irani said that the government of...

Apparel/Garments | On 23rd May 2017

Apparel, footwear use may rise by 63% in 2030: Report

The apparel and footwear consumption is projected to rise by 63 per...

Apparel/Garments | On 23rd May 2017

Gap Inc earns $3.4 bn in net sales in Q1 FY17

Gap Inc's net sales for the first quarter of fiscal year 2017 were...

Interviews View All

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search