Significant increase in PUMA gross profit margin

26 Feb '08

3 min read

PUMA AG announces its consolidated financial results for the 4th Quarter and Financial Year of 2007.

The year 2007 was a year with only a few events. Nevertheless most of the targets set were reached and even exceeded in many areas.

The Company successfully strengthened its positioning as a desirable sportlifestyle brand, which is as well reflected in the improved gross profit margin.

In 2007, worldwide brand sales were up 3.4% currency adjusted, amounting to € 2.7 billion. On a comparable basis, consolidated sales climbed by 4.7% to € 2.4 billion.

The gross profit margin jumped by 170 basis points to over 52%, and operating profit was above last year's, totalling € 372.0 million. Earnings per share increased from € 16.39 to € 16.80.

Highlights 4th Quarter 2007 In Q4, consolidated sales increased significantly by 10.3% to € 504.5 million on a currency-adjusted basis. Footwear rose by 7.0% to € 277.2 million, Apparel by 14.8% to € 194.7 million and Accessories by 14.0% to € 32.6 million.

By regions, EMEA sales increased by 19.9% and Asia/Pacific went up by 14.3% whereas sales in the Americas decreased by 3.3% as expected. The gross profit margin was at 51.6% 390 basis points up from last year's quarter.

SG&A increased from 38.7% to 40.3% of sales. EBIT rose significantly by 20.7% to € 52.4 million and earnings per share from € 2.03 to € 2.40. Highlights January – December 2007 Global brand sales growth of more than 3% PUMA brand sales rose currency-adjusted by 3.4% to € 2.7 billion.

Due to the continuing weakness of currencies, particularly of the US Dollar, brand sales in Euros were slightly below last year's level. By segments, Footwear sales climbed on a comparable basis by 1.9% to € 1,477.9 million, Apparel by 5.7% to € 998.7 million, and Accessories by 3.7% to € 262.2 million.

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