Puma to propose suspension of dividend; AGM on May 7

03 Apr '20

2 min read

Pic: Puma

The management board of Puma SE has decided to propose to the annual general meeting the suspension of the dividend payment for the financial year 2019 due to impact of Covid-19 on business. Apart from China, Japan and South Korea, almost all of Puma’s own stores as well as those of Puma’s partners have been temporarily closed by the authorities.

Puma’s e-commerce business, while still operational in almost all markets, accounts for less than 10 per cent of the business. This led to a major decline in net sales and cash inflow. Company reports that it is currently impossible to foresee how long this situation will last. To get through this crisis, company is working closely with all its partners such as retailers, suppliers, landlords, banks, and authorities.

The company further stated that it is reducing costs and cash outflow wherever possible as well as securing additional financing to ensure that together with its partners company can sustain the value chain in this period. The goal is to get through this crisis together. Puma's focus is on managing the short-term challenges as well as possible, without hindering the midterm momentum for the company.

Ensuring financing through this crisis is key and company believe’s suspending dividend payments as well as suspending the management board’s salary 100 per cent and reducing that of its senior management by 25 per cent are the right measures given the circumstances, as reported.

Due to the spread of Sars-CoV-2 in Germany and the contact bans mandated by authorities, the management board and the supervisory board of Puma SE has decided to hold the annual general meeting on May 7, 2020 as a digital meeting only. The invitation for the meeting will be published by April 15, 2020 at the latest. Puma’s Annual General Meeting on May 7, 2020 will meet all conditions required by the new law.

Moreover, to ensure consistent communication in a fast-changing business environment impacted by Sars-CoV-2, Puma has decided to move the date of the publication of the results for the first quarter of 2020 by one week from April 30, 2020 also to May 7, 2020.

Fibre2Fashion News Desk (JL)

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