Puma Q2 sales decline 4%

July 24, 2013 - Germany

PUMA reported results for the second quarter of 2013.

2013 Second Quarter Facts

- Consolidated sales decline by 4.0% currency adjusted to € 692 million
- Strong sales growth in the UK, India and Russia
- Southern Europe and the Far East remain challenging
- Ongoing Transformation and Cost Reduction Program implementation leads to lower operating expenses
- EPS retreats from € 1.78 to € 1.17
- New CEO, COO and Global Creative Director have taken up office
- Multi-award winning Mobium Elite running shoe is gathering momentum

2013 First Six Months Facts

- Consolidated sales decrease by 3.1% currency adjusted to € 1.47 billion
- Gross profit margin equal to 47.7%
- EPS amounts to € 4.54

Michael Laemmermann, Chief Financial Officer of PUMA SE: “Despite sluggish performances in Southern Europe and the Far East as well as currency headwinds impacting sales, PUMA’s second quarter performance was in line with our full-year guidance. We have pushed forward with our Transformation and Cost Reduction Program and continued to reduce the number of underperforming retail stores. With our new Chief Executive and Chief Operating Officers as well as Global Creative Director onboard, we are well positioned to secure profitable, long term growth.”

Sales Performance by Region

PUMA’s consolidated sales declined by 4.0% currency adjusted from € 753 million to € 692 million as a result of lower sales in all regions during the second quarter of 2013. Sales in Euro terms fell by 8.0% due to negative currency effects in various countries, notably in Japan, Argentina and South Africa.

Eastern European growth boosted by Russian Market

The EMEA region recorded a decline of 4.7% currency adjusted with sales of € 266 million in the second quarter. PUMA’s sales performance in Eastern Europe bucked the current sluggish business trend in Europe, delivering mid-single digit sales growth currency adjusted. Russia in particular rose strongly, delivering strong double-digit currency adjusted growth against a background of continuing retail portfolio optimization.

Sales in Turkey rose likewise, driven in particular by an improved retail performance. However, these excellent performances were more than offset by slowing sales in Western and Southern Europe with France and Italy in particular not meeting expectations within the region.

In the Americas sales softened by 1.3% currency adjusted to € 267 million in the second quarter of 2013, including strong comparables. While sales in the US market decreased slightly and performance in Chile slowed, Canada and Argentina improved significantly. Golf products resonated particularly well with consumers in Canada, while in Argentina improved product availability due to increased local production underpinned strong sales growth.

Sales in the Asia/Pacific region fell by 7.2% currency adjusted to € 159 million, declining in nearly all markets. Although India continues to deliver another excellent quarterly performance, where our cricket offering continues to perform, and sales in Japan were positive on a currency adjusted basis, this was compensated by slow-downs in Korea and China, where some wholesalers have consolidated and high inventories persist within the market.

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