Puma records strong Q1

German sporting goods company Puma has recorded better than expected results for the first quarter 2006. Consolidated sales rose almost 30 percent to €643 million. Like-for-like organic growth accounted for 10.7 percent of the total, while new consolidations represented 18.8 percent of the total performance. Footwear sales were up 18 percent to €399 million, while apparel soared 63.1 percent to €202 million and accessories leapt 21.6 percent to €42 million. Global branded sales, which include consolidated and license sales, rose 15.3 percent to €737 million. Global footwear sales gained 12.5 percent, apparel grew 19.1 percent and accessories rose almost 20 percent.

The gross profit margin remained above the 52 percent mark at 52.4 percent. Meanwhile, net earnings increased 2.5 percent, accounting for €93 million as opposed to €91 million last year. During the quarter, the company purchased another 50,000 of its own shares. At the end of the three months, Puma held a total of 940,000 shares as treasury stock, representing 5.6 percent of total share capital.

As a result of license buybacks and joint ventures, Puma now has a more balanced regional business portfolio. EMEA now accounts for 52.8 percent (72.2 percent last year), the Americas for 28.3 percent (19 percent last year) and the Asia-Pacific region for 18.9 percent (8.8 percent last year). Sales in the EMEA region amounted to €339 million, compared with €359 million last year. The decline had been anticipated as a result of a strong top-line performance in the first quarter of 2005. Orders for the region, however, increased more than expect with 12 percent to €600 million.

Sales in the Americas continued to grow in leaps and bounds with 93.1 percent to €182 million. US like-for-like sales soared 62.4 percent. Meanwhile, sales in the Asia-Pacific region surged 177.6 percent to €122 million, with organic growth representing 17.7 percent of total sales. Orders in the region were up 114.6 percent. Chief executive Jochen Zeitz said: “We are pleased to have catalyzed our Phase IV growth plans with a Q1 above our expectations and the smooth integration of former licensee partners into our consolidated business. With the World Cup and other exciting initiatives still to come in 2006, we remain very positive in the outlook for the remainder of the year.� Future orders are up 35 percent to €1.1 billion and Puma management has increased its sales and earnings forecast for 2006, predicting growth to rise 35 percent to almost €2.4 billion.