sporting goods company Puma, sports, fashion, news

Puma launches bodywear

Sports conglomerate Puma is to launch its Complete Bodywear Col lection this fall. The German-owned company stated: "The performance bodywear category has grown significantly in the last five years, creating a great opportunity to infuse the Puma DNA of sport lifestyle and fashion into this performance product," said Tom Morgan, senior vice president of sales and marketing for Puma North America.

"As a brand, we are always trying to influence the worlds of lifestyle and sport, and show that more technical fabrics can also be worn as part of fashion and lifestyle. From a fit and design standpoint, ours is not the traditional high-end, very male-looking product."

The first delivery goes out this month to about 150 doors, including sporting goods, sports specialty, department and Puma stores, according to Morgan. He predicted Bodywear could make up at least 5 percent of Puma's U.S. apparel business. The company doesn't break out U.S. sales, but globally, Puma's apparel brings in about $1 billion annually.

www.puma.com
5 July 2007

Puma Q1 profit rises, issues profit warning

German sportswear specialist Puma reported a 3.7 percent rise in first quarter profits, but warned that it expected growth to slow into the low single-digits due to weak order writing at the end of the quarter. The company said net earnings for the three months ended 30 April rose to €96.6 million from €93.1 million, while net sales increased 2 percent to €655.8 million. Sales in the US and the Asian-Pacific region slipped 4.1 percent and 0.9 percent respectively, although China reported double-digit gains. Europe faired much better, with sales up 6.4 percent to €360.9 million.

Meanwhile, footwear sales rose 3.6 percent to €413.5 million. Apparel and accessories fared less well, sliding 0.5 percent to €200.7 million and 1.2 percent to €41.7 million respectively.

“While the remainder of the off-year in terms of major sports events will certainly be challenging, given our current order book, we continue to be fully focused on our long-term objectives,” said chief executive Jochen Zeitz, admitting that the quarterly results would have consequences for the rest of the year. Puma is subject to a takeover from French retail giant PPR, which last month said it could buy a controlling stake in the company and would offer €330 per share for the rest of the company's stock.

www.puma.com
8 May 2007

Takeover Puma by PPR

PPR announced on Tuesday morning that it had taken a 27 percent stake in German sportswear retailer Puma. The French luxury goods group said that it planned to take over the rest of the company for €5.3 billion, or €330 per share. With the sale of their stake to PPR, siblings Gunther and Daniela Herz – until now Puma's largest shareholders – have relinquished all control of Puma.

PPR said the transaction would have a positive effect on income. The acquisition will be completed by July.

The deal is a departure from the norm for both companies. PPR has a large portfolio of luxury brands including Gucci en Yves Saint Laurent and has said in the past that it would concentrate on growing its luxury goods business. Meanwhile, the industry had expected Puma to be a takeover target for its big US rival Nike or British sporting goods retailer Umbro. Puma appeared to be most interested in manifesting itself as a high-end sportswear firm, collaborating on various collections with big fashion names like Stella McCartney and Alexander McQueen. The latter is actually part of the PPR stable of brands.

“The Puma Board of Management unanimously believes that PPR's engagement is in the best interests of the company and that the announced offer price per share of €330 for the voluntary public take-over offer is fair,” said Jochen Zeitz, chairman and chief executive of Puma. “Going forward Puma can utilize PPR's premium segment design and sourcing expertise, contributing to the further improvement of Puma's product offering. Additionally, PPR's experience in worldwide retail, wholesale and multi-brand management will provide valuable support to Puma's brand expansion plans.”

According to PPR's chairman and chief executive Francois-Henri Pinault promised that Puma would be an autonomous part of the group. “We guarnatee Puma's continuity as an autonomous company within the PPR Group and we will support management with our resources and our know-how in strengthening Puma's unique brand positioning.”

www.ppr.com
www.puma.com
10 April 2007

Puma profits below expectations

German sports brand Puma saw its profits slide, despite growth in sales. According to reports, the company made 32.8 million euros (£22.2m) profit, down 26% on the previous year and below analyst's predictions. The group put the drop down to rising costs incurred as it expanded its operations and restructured its marketing and product development. However sales rose 37% during the period to 480.6m euros (£324m).

After Nike, Puma is Europe's second largest sports good maker and the sporting goods company has invested more in designing more directional footwear and advertising its products. Looking ahead, the company said it expected 2007 sales to increase by a mid to high single-digit percentage rate and net profit to rise at least 10%. The Herzogenaurach-based firm's sales have increased five-fold in the past six years.

www.puma.com
20 February 2007

Puma introduces luxury sneaker

German sportswear giant Puma is entering the luxury sector with the introduction of a line of bespoke leather sneakers. The range, which also includes bags, is the result of a collaboration with Schedoni, the Italian leather manufacturer that also makes custom-made luggage for Ferrari. “Ninety percent of sports products are made in the Far East now,” Christian Weisender, international sales manager for Puma, said during the launch of Puma by Schedoni. “Now was the right time to go back to our roots. It's the first customized sneaker to be made with an Italian manufacturer.”

Puma plans to install leather work stations resembling travelling trunks that pop up in 50 stores worldwide. They will be introduced in all Puma Black stores and in selected high-end department stores, such as Harrods in London . The work stations will allow customers to choose their own colour combinations from a selection of the manufacturer's suede and naturally tanned leather skins. Once a selection has been made, the production process takes four weeks. The finished product is delivered to the customer complete with a number and a signed certificate from the artisan who made it. Adding to the exclusiveness of the sneaker, a maximum of 500 shoes per colour combination can be made. Consumers will have to be prepared to pay the price though. Prices start at €450 for a pair of suede and leather shoes and run up to €750 for a pair of high-tops made of fire-proof leather. Bags will retail for between €950 and €1200.

According to Weisender, Puma plans to target a niche market that wants to spend money on quality and can distinguish between basic and top quality leather. He explained that although the target audience is a small market, there is high demand within that market. He also added that the target audience is very different from the one targeted by the Alexander McQueen line, in that the latter is “positioned in avant-garde retail environments.” There will therefore be no conflict with Puma's other collaborations, which also include Philippe Starck and Stella McCartney.

www.puma.com
1 December 2006

Puma launches Wanders accessories

Puma is to launch an accessories collection designed by Dutch industrial designer Marcel Wanders. The collection, which consists of eight pieces, will launch in time for spring 2007. “Puma uses collaboration as two worlds coming together to make a product that is unique and fresh,” Antonio Bertone, Puma's director of global brand management, said in a statement. “The objective of Puma's co-op projects is for an outside designer to share a different perspective so that we can learn from one another. Marcel Wanders is a pioneer of the unexpected and the ideal partner for us in this venture.” A spokeswoman for the company could not reveal details about the collection but said that more would be made known about it next week.

Wanders made his name with the Knot Chair, a macramé chair which appears to be made out of rope. He designs for some of the biggest names in design manufacturing, including Bisazza, Boffi, Poliform and his own design firm, Moooi.

“Puma has a strong connection to changing culture and wants to stay close to cultural trends by being a leader at the same time,” Wanders said. “I love to find new areas for my creativity and create greater value for a larger audience. Although we are very different, we both believe we can create added value by inspiring our public in a seductive and creative way.” Puma has collaborated with many designers, from Jil Sander, Neil Barrett and Alexander McQueen to Philippe Starck and Marc Jacobs, who created a bag for Nuala, the company's joint yoga wear line with supermodel Christy Turlington.

The collection will be unveiled during the Tokyo Design Week on 31 October, followed by New York and Amsterdam in November. From spring 2007 it will be available in all Puma stores and select retail partners.

www.puma.com
2 October 2006

Puma Q2 profit drops

Sportswear giant Puma AG saw second quarter earnings fall 14.9 percent to €50 million due to high marketing costs during the World Cup this summer. Sales rose 17.7 percent to €620 million. Earnings for the first half fell 4.4 percent to €143 million on sales of €1.4 billion, signifying a rise of 16.1 percent on the same period in 2005. Footwear sales gained 13.9 percent to €770 million in the first half, while apparel sales surged 19.2 percent to €469 million and accessories sales increased 18.9 percent to €118 million. Europe, the Middle East and Africa accounted for 50.5 percent of revenues, down from 67.1 percent last year, due to the recovery of six licenses at the beginning of the year. The Americas generated 29.7 percent of sales, up from 22.7 percent last year, while Asia accounted for 19.8 percent, compared with 10.2 percent last year. The company reiterated its full year sales forecast of 35 percent growth and added that the full year profit margin will be between 50 and 51 percent. “By supplying the World Champion Italian national team, along with our overall strong brand visibility at the football World Cup, as well as further outstanding performances in new product categories like golf, Puma was able to strengthen its position as one of the most desirable sports lifestyle brands,” chief executive Jochen Zeitz said in a statement. “Combined with half-year results that exceeded expectations, it has been a very successful first six months of 2006 and of Phase IV of our business plan.” Phase IV was initiated to boost Puma’s position as one of the top three global sporting brands in the world, with an aim to becoming the number one in the long term, said Zeitz.

www.puma.com
7 August 2006

World Cup expenditure sees Puma’s profits drop

German sports company Puma saw profits drop in the second quarter after an expensive marketing, sales and sponsorship campaign for the World Cup. But despite a 14.9% fall in net profit, the Herzogenaurach-based firm remains confident for the full year.

Puma sponsors football World Cup winners Italy and had 11 other teams at the tournament wearing its kit, ahead of arch-rival Adidas and Nike. Net income fell to 50m euros ($64m: Ł34m), the company said.

During the football tournament in Germany, which ran from 9 June to 9 July, Puma ran a high-profile television campaign featuring World Cup legend Pele. The firm also carried widespread advertising in other German media outlets, while its television campaign also ran on television in the UK.

Among the 12 teams wearing Puma kit, many were emerging soccer nations and Puma marketed itself as a friend of Africa. The company has traditionally lived in the shadow of bigger outfit Adidas - an official World Cup sponsor based in the same small southern German town.

Puma said revenue in the quarter rose 38.2% to 547m euros, driven by sales of soccer gear around the World Cup.

It also said new orders were up by one third, with growth coming from all regions, including Europe.

Asia and Americas were the strongest regions, but the Europe, Middle East and Africa (EMEA) region also saw sales rise 8.9% on a year ago.

4 August 2006

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.

www.puma.com
4 May 2006

Demand for Puma fashion products rises

German sportswear group Puma has raised its profit forecast on the back of increased demand for its fashion products and sneakers in Europe and the US late last year. The group raised earnings estimates for the full year by €20 million to €350 million (£239 million) and said that consolidated earnings would “significantly” exceed earlier forecasts. Puma had previously expected more modest operating profits between €300 million and €330 million due to higher marketing costs related to the World Cup for football in Germany . The company is spending large amounts on sponsorship for the event and is sole sponsor of more teams than any other sporting goods label.

This year, management expects sales to rise more than 30 percent to €2.3 billion. The group's target for 2010 is to generate sales of €3.5 billion. Furthermore the group intends to almost double revenues in Asia from 11 to 20 percent this year and has successfully embarked on Phase IV of its expansion strategy, which it initiated in 1993 to expand beyond the European market. Record orders at the beginning of this phase exceeded the €1 billion mark. Puma has recorded growth for the eleventh consecutive year since the program was initiated.

“With a better than expected result in Q4 and for the full year 2005 as well as a very positive start of Phase IV we are confident that during the World Cup year 2006 Puma will once again achieve records sales followed by new record earnings in 2007 thus taking another important step towards accomplishing our long-term company objectives,” said chief executive Jochan Zeitz.

Net profit in the fourth quarter increased 15 percent to €44.1 million. Consolidated sales for the quarter soared almost 30 percent to €349.2 million. The sale of footwear rose 25.8 percent to €221 million, while apparel sales climbed 31.8 percent to €101 million. Meanwhile accessories rose 28.9 percent to €27 million. Global Puma brand sales for the full year 2005, comprised of consolidated and license sales, rose 18.4 percent to €2.4 billion. Footwear sales for the year rose 17.7 percent to €1.326 million, while apparel sales rose 16.5 percent to €828 million and accessories were up 30.2 percent to €233 million.

www.puma.com
13 February 2006

Herz siblings increase Puma stake

Billionaire siblings Gunter and Daniela Herz have upped their stake in German sporting goods firm Puma to 25 percent. Shares soared to a record high as a result. The siblings, who increased their 17 percent stake by 8 percent, now own a majority stake in the company. This has prompted speculation that Puma might be subject to a takeover by either the siblings or by a rival like Nike.

Heinrich Stahl, head of Maryland, the investment vehicle that was used by the siblings in their purchase, said that a takover offer was not on the cards as yet, but declined to rule out the possibility altogether. “After the acquisition of Reebok by Adidas and the presentation of phase IV of its strategy by Puma, we are showing we believe further in Puma,” he told the FT. He admitted that a takeover by Nike would “make a lot of sense” for the that company. “Our targets are long-term. So we don't set out to make short-term investments. We believe in the future of Puma as a stand-alone company,” he added.

www.puma.com
12 September 2005

Puma joins forces with McQueen

Sporting goods company Puma has announced a collaborative partnership with designer extraordinaire Alexander McQueen. Together they will produce a new line of men's and women's footwear that will launch in spring 2006. McQueen is an ideal partner for Puma because of his ability to push the boundaries and his craftmanship.

"I have always had a great passion for trainers, so I am very excited about this collaboration with Puma. I am confident that my design philosphy, combined with Puma's excellence in the field, will result in a totally unique product. I believe that this partnership will be a great success," said McQueen.

McQueen joins the ranks of top designers like Stella McCartney, who have entered into collaborative partnerships with athletic goods brands. For Puma, partnering with a leading designer is part of its image as an innovator in the world of sport and fashion. Recently the company opened a store in New York's ultra-hip Meatpacking District, alongside Alexander McQueen's flagship store.

CEO and Chairman of Puman AG, Jochen Zeitz, said: "Alexander McQueen is one of the most creative minds in fashion and his collaboration with Puma will make his work accessible to a broader consumer. The collaboration will connect Puma with the most front-end fashion innovators and take the concept of sport-fashion to the next level. Known for his ability to juxtapose influences, the fusing of sport and fashion was Alexander McQueen's challenge, his response is an unexpected collection that is based on the union of tradition and technology."

The collection will be unveiled during London Fashion Week in September 2005 and will be available at high-end retailers from spring 2006.

www.puma.com
31 May 2005

Puma sees strong growth

Puma's worldwide branded sales, which include consolidated and license sales, rose 18.1% currency-neutral or, in Euro by 16.3% to €639 million. Footwear sales improved by 13.3% (in Euro 11.5%) to €376 million, Apparel by 21.5% (19.7%) to €211 million and Accessories by a strong 46.9% (45.1%) to €52 million.

The sportswear brand further saw consolidated sales increase for the 25th consecutive quarter and continued with another double-digit growth of 13.7% currency-neutral in Q1. In Euro, this means an increase of 11.9% to €497 million. Sales in the largest segment, footwear, were up 12.1% (in Euro 10.6%) to €338 million and Apparel by 12.4% (11.2%) to €124 million. Accessories realized the strongest growth rate with 32.5% (30.1%) and sales climbed to €35 million.

www.puma.com
27 April 2005

Puma raises forecast

The German sportwear and apparel giant, Puma AG, has raised its financial outlook for 2005. It predicts that 2005 profit and currency-adjusted sales will grow by middle-to-high single digits. Chief executive Jochen Zeitz indicated that the company's strong financial results made many different situations possible in the future, and said that acquisitions remained likely.

www.puma.com
31 March 2005

Schumacher sponsors Puma

Formula 1 champion Michael Schumacher has formed an alliance with sports goods company Puma AG. The company is already a strong contender in motor sports, having been involved in motor racing sponsorship since the 1970's. It recently signed a contract with Ferrari, the leading team in Formula 1.

Schumacher wore Puma fireproof racing footwear at the Formula 1 race in Shanghai last weekend. His new footwear of choice is the Future Cat, a new and specially developed racing shoe. It has been designed to heighten the performance of the wearer, with a snug yet comfortable fit and asymmetrical lacing to provide better circulation.

www.puma.com
27 September 2004

Puma store features 3D projection

The Puma flagship store in Carnaby Street, London, is spotlighting an electronic display able to project dynamic images through 360 degrees both horizontally and vertically. The sportswear brand's store is the first retail installation in the UK to use the unique Video Gobo, installed by Digital Display Corporation.

The device allows the image of a cat, able to roam freely around the walls of the store, and above the counter, where he is seen to walk across the display shelves.When the shop closes, the cat moves to a transparent holographic glass screen in the window, where he sleeps. Traditional permanent electronic displays have always required a projector to be installed in a fixed position with the image shown on a static screen.

The new computer controlled system has the projector mounted within the 'U' frame, with software turning and swivelling the frame and projector to show images moving in all directions.

www.puma.com
19 January 2004

Puma Posts Boost in Profits

Footwear retailer Puma, which last week won the Drapers Record Award for Footwear Brand olf the Year, reported record pre-tax profits up 113.5 per cent to GBP 71million for the three months to September 30. Sales were up 37.8 per cent to GBP 275.2m. Clothing sales saw the strongest growth with sales up 46 per cent to GBP 75.3m.

11 November 2003
www.puma.com

Minardi staff to wear Puma

Sports brand Puma has signing a two-year contract with Minardi. Puma will supply footwear for the entire Minardi F1 crew, including the fireproof shoes for the refuelling team and the two drivers, Jos Verstappen and Justin Wilson.
In addition, the Puma logo will be featured on the fireproof racewear of the pit crew and drivers, as well as on the headrests of the Minardi race cars and two-seaters.

"Minardi is very happy and proud to have Puma as its new racewear partner," confirmed Paul Stoddart, Australian team boss of the Anglo-Italian outfit. Martin Gansler, Vice Chairman of Puma, added that Minardi regularly wins fans the world over by competing as an "underdog team that often exceeds expectations." He continued: "We do understand that under the current difficult general economic situation, keeping a racing team going in a high profile and global sport as Formula One is not an easy task."

January 29, 2003
www.puma.com

Puma expects 50% sales growth for 2002

Better-than-expected third-quarter results this week showed Puma, the German sportswear company, continuing to ride the fashion wave in the sportswear market. The company reported the third quarter sales increased by 48.2% from GBP 124.9 million to 185 million. For the period January through September, sales were up by 53.6%, growing from GBP 301.6 million to GBP 463.1 million.

Footwear sales performed particularly well, with an increase of 60.3% during the third quarter and 60.7% for the first nine months of 2002, reaching GBP 125.8 million of 318.7 million respectively. In the third quarter, the gross profit margin further improved and reached 44.1% compared to 42.4% from last year. For the first nine months, the gross profit margin reached 43.5% versus 41.3% the previous year. During the third quarter, sales in Europe were up by 54.5% to GBP 140 million. Sales for the first nine months rose by 59.3% to GBP 325.9 million, versus GBP 204.6 million last year. All countries within this region contributed with impressive double-digit growth. In terms of product categories, footwear was up 72.3%, apparel was up 33% and accessories were up 47.9%. Comprising 70.4% of the company's consolidated sales, Europe continues to be the strongest region.

Puma management expects sales growth for 2002 of nearly 50%. This would be the highest growth rate in eight consecutive years of growth. Jochen Zeitz, Chairman and CEO, said: "In light of the overall challenging market environment, our strong performance is even more pleasing. We are well positioned to further enhance our market share and position with the goal of becoming the most desirable sportlifestyle brand in the world. "

www.puma.com
October 7, 2002

Rising sales for Puma in Europe

German sporting goods company Puma AG continues on its path of seemingly unstoppable growth, as it posts a 57.4 per cent jump in first half sales to EUR 438.7m. In Europe, where the company generates two-thirds of total sales, business grew a spectacular 63 per cent to EUR 293.3m.

Puma's CEO Jochen Zeitz, predicted that the pre-tax profit could amount to approximately EUR 100m at the end of 2002, which will make this "another extraordinary year" for the company. Zeitz pointed out that at the end of June Puma had already earned as much as in the whole year last year, with pre-tax profits at EUR 57.2m. Orders were 65 per cent ahead of last year reaching EUR 422.4m.

In the first half of 2002, worldwide sales for the Puma brand including licensing operations increased by 35 per cent to EUR 652.7m. Puma claims that all product categories have showed strong growth with accessories sales rising by 90.7 per cent, shoes by 60.9 per cent and clothing by 41.3 per cent.