Puma Q3 EMEA sales down 2.5 percent

German-based sports lifestyle company Puma has reported a fall in EBT for the first nine months of the year from 281.1 million euros (364.87 million dollars) to 167.7 million euros (217.67 million dollars)after special items, a drop of 40.3 percent.

Sales in EMEA were down 2.5 percent, with most markets in Western Europe continuing to face challenges, although Germany returned satisfying figures, as did Turkey. Conversely, sales in the Americas rose strongly by 18.3 percent with good results across both North and Latin America. North America benefitted in particular from continued growth in Puma’s socks and bodywear subsidiary as well as Cobra Puma Golf. Asia/Pacific sales increased by 14.9 percent, supported again by excellent numbers from India and Japan.

As a consequence of continued pressure on the gross profit margin, increased expenditures and the special items in particular, consolidated net earnings fell by 85.1 percent to 12.2 million euros (15.84 million dollars). Earnings per share therefore fell to 0.81 euro (1.05 dollars). For the first nine months of 2012, net earnings weakened by 42.8 percent to 112.8 million euros (146.41 million dollars) and EPS decreased to 7.53 euros (9.77 dollars).

Puma’s third quarter consolidated sales increased 6 percent in euro terms and by 0.5 percent currency adjusted to 892.2 million euros (1158.08 million dollars). Third-quarter retail sales were 165 million euros (214.17 million dollars), an increase of 22.7 percent compared to 134 million euros (173.93 million dollars) for the third quarter of 2011 and equal to 18.5 percent of total sales.

“Puma posted a moderate increase in sales in the third quarter despite the challenging business climate in Europe,” said Franz Koch, CEO of Puma SE. “We have taken decisive actions to overcome the issues we are currently facing in particular in Europe. Our Transformation Program 2010-2015 in combination with immediate cost cutting measures and a strengthened product pipeline in Performance and Lifestyle for the next year will provide a solid basis for sustainable and desirable growth.”