Home / Knowledge / News / Fashion / PUMA confirms a single-digit sales increase on a currency neutral basis
PUMA confirms a single-digit sales increase on a currency neutral basis
07
Aug '08
PUMA AG announces its consolidated financial results for the 2nd Quarter and 1st Half-Year of 2008.

Jochen Zeitz, CEO: ”PUMA's performance in the second quarter improved at a steady pace, ahead of the Q1 progression. Thanks to our scheduled brand investments, consolidated sales were up 11% in the quarter, driven by a solid growth in all regions and categories.

I remain confident in PUMA's ability to achieve another year of top-line growth despite an ongoing difficult global consumer environment.”

Sales and Earnings Development Global brand sales at € 1.4 billion in first half PUMA's brand sales, which include consolidated sales and license sales, reached € 628.9 million during Q2, a currency-adjusted increase of 5.4% or 1.1% in Euro terms.

During the first six months, brand sales rose 2.7% currency-adjusted, reaching € 1,370.0 million versus € 1,384.0 million last year. Footwear sales slightly declined 1.3% to € 735.7 million.

Apparel improved by 1.5% to € 472.9 million and Accessories grew strongly by 32.2% to € 161.5 million. Licensed business Due to the take-back of the former license market Korea, the licensed business decreased in Q2 by 33.2% currency-adjusted to € 52.1 million and by 34.6% to € 119.9 million after six months.

Based on the licensed sales, the company realized a royalty and commission income of € 6.4 million in Q2 versus € 8.8 million in the prior year's quarter and € 13.4 million versus € 18.5 million year-to-date.

Consolidated sales up almost 9% after six months In the second quarter, consolidated sales grew 11.2% currency-adjusted, or 6.3% in Euro terms to € 576.8 million.

This shows an improvement as compared to Q1 this year, despite a tough comp basis due to last year's early shipments.

On a currency neutral basis, Footwear was up 7.0% to € 325.1 million, Apparel improved by 14.6% to € 206.3 million and Accessories by a strong 30.3% to € 45.4 million. Sales in the first six months were up 8.7% currency-adjusted to € 1,250.1 million.

In segments, Footwear increased 2.8% to € 719.4 million, Apparel 16.6% to € 438.1 million and Accessories 22.9% to € 92.7 million.

Gross profit margin at 53% in H1 The gross profit margin further improved by 30 basis points to 52.5% in Q2. After six months, gross profit margin was up to 53.0%, an increase of 80 basis points.

In the first half, Footwear margin was up from 52.1% to 53.4% and the Apparel margins increased from 52.1% to 52.5%. Accessories reported a margin of 52.1% versus 53.8% last year.

SG&A Total SG&A expenses increased in Q2 by 5.7% to € 233.1 million and by 7.7% to € 460.9 million during the first half. As a percentage of sales, the cost ratio decreased from 40.6% to 40.4% in Q2 and increased from 35.7% to 36.9% in H1. The increase in cost ratio is due to continuous investments into the brand according to budget.

For the first half, marketing/retail expenses were up by 19.5% to € 247.9 million as planned. Product development and design expenses were down by 13.4% to € 24.8 million or to 2.0% of sales.

Other selling, general and administrative expenses were down 1.9% to € 188.3 million or from 16.0% to 15.1% of sales. EBIT at € 188 million in H1 In Q2, EBIT was up by 2.1% to € 62.3 million, showing a clear improvement versus the first quarter.

After six months, EBIT reached € 188.1 million compared to € 195.9 million last year. The EBIT margin was 10.8% versus 11.2% and 15.0% versus 16.3% respectively. The tax ratio was calculated at 28.5% versus 28.7% during the six month period.

Net earnings/Earnings per share Net earnings increased by 0.9% to € 45.6 million in Q2. In the first half net earnings were down by 4.3% to € 135.7 million.

The net return amounts to 7.9% versus 8.3% and 10.9% versus 11.8% respectively. Earnings per share in Q2 were up 5.7% from € 2.82 to € 2.98.


Must ReadView All

Courtesy: Ministry of Trade and Industry, Singapore

Textiles | On 22nd Feb 2018

Final version of CPTPP pact released; to be signed in March

The final version of the Comprehensive and Progressive Agreement for...

Amazon India crosses 3 lakh seller base in less than 5 yrs

Apparel/Garments | On 22nd Feb 2018

Amazon India crosses 3 lakh seller base in less than 5 yrs

Amazon recently claimed to have crossed the three-lakh seller base in ...

Gujarat finance minister Nitin Patel. Courtesy: Global Gujarat News

Textiles | On 22nd Feb 2018

Rs843 cr for MSMEs, Rs35 cr for khadi in Gujarat budget

The Gujarat government has made a provision of Rs 843 crore in the...

Interviews View All

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Mike Hoffman
Gildan Activewear SRL

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

February 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


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