Puma Q2 consolidated sales up by 11.8 percent

Puma reported its financial status for the second quarter of the fiscal 2012. Consolidated sales grew by 11.8 percent in euro terms and by 6 percent currency adjusted to 752.9 million euros (914.25 million dollars). Whereas for the half year of this fiscal, consolidated sales improved by 8.8 percent in Euro terms or by 5.1 percent currency adjusted to 1.57 billion euros (1.91 billion dollars). Second quarter retail sales were 150 million euros (182.15 million dollars), 22.3 percent ahead of last year’s 122 million euros (148.14 million dollars), representing 19.9 percent of total sales. From January to June, retail sales were up 19 percent from 228 million euros (276.86 million dollars) to 272 million euros (330.29 million dollars), delivering 17.3 percent of total sales. According to the company increased volumes at existing stores, new store openings as well as continued growth in e-commerce business were responsible for this positive development.

The gross profit margin stayed flat at 49.1 percent in the second quarter of 2012, supported by a favorable hedging impact compared to last year. On a half year basis, the gross profit margin declined 70 basis points from 50.9 percent to 50.2 percent. Operating profit declined by 15 percent to 47.1 million euros (57.19 million dollars) during the second quarter of 2012. On a half-year basis EBIT fell by 10.4 percent to 149.1 million euros (181.05 million dollars), which represents an EBIT margin of 9.5 percent.

The financial result declined from -1.6 million euros (1.94 million dollars) to -3.7 million euros (4.49 million dollars) due mainly to negative currency developments. Similarly, for the year to date, the financial result moved down from -1.8 million euros (2.19 million dollars) to -2.7 million euros (3.28 million dollars).

As a consequence of lower than expected gross profit and increased expenses, consolidated net earnings decreased by 29.2 percent to 26.7 million euros (32.42 million dollars), coming in weaker than Management had anticipated. Earnings per share fell by 29 percent to 1.78 euros (2.16 dollars).

For the first half of 2012, net earnings weakened by 12.8 percent to 100.6 million euros (122.16 million dollars) and EPS decreased by 12.6 percent to 6.72 euros (8.16 dollars).

The total cash position as of June 30, 2012 was reduced by 19.8 percent from 352 million euros (427.43 million dollars) to 282 million euros (342.43 million dollars), affected by the purchase of the remaining Dobotex shares. Including bank debts, the net cash position decreased 26.6 percent from 321 million euros (389.79 million dollars) to 236 million euros (286.57 million dollars).

The management revises its previous guidance for Puma’s 2012 net sales growth from a high-single digit to a mid-single digit rate and expects annual net earnings to decrease significantly from the 230.1 million euros (279.41 million dollars) posted last year, impacted by the aforementioned one-off expenses.