Puma Plaza in Herzogenaurach

Puma announced on November, 8, 2007 a new site who launch a new Brand Center and a new Concept and Factory Outlet Store.

Puma Press Release:

PUMA strengthens its position in Herzogenaurach: after the opening of the Factory Outlet in 2002 and the headquarters - extension in 2005, the Sportlifestyle company starts its third investment project in its hometown with today’s ground-breaking ceremony for new headquarters PUMA Plaza.

The site will house an administration centre for the Central European hub, a new Brand Center and a new Concept and Factory Outlet Store. Jochen Zeitz, Chairman and CEO of PUMA AG welcomed Bavarian Secretary of State Dr. Günther Beckstein at the ceremony.

The new PUMA headquarters in Herzogenaurach will cover 50,000 square meters and will accommodate approximately 700 employees, with 780 parking spaces also available on location. Completion of the construction is expected for the end of 2009. Related investments in coming years will be around € 50 million. The three new buildings form a space in the middle, creating the actual Plaza. Alongside a seven-story administration center for the Central European offices, a new Brand Center and a new Concept and Factory Outlet with a restaurant are planned.

In the new Brand Center, innovative Sportlifestyle collections will be exhibited in order and presentation space of 10,000 square meters. Moreover, a multimedia hall will accommodate 1,500 people. Jochen Zeitz, Chairman and CEO, PUMA AG: “PUMA Plaza will not only strengthen our brand visibility, but will also extend our position in Herzogenaurach. The creation of modern office space and attractive working conditions outlines our role as one of the leading employer in the region. Regarding environmental protection, we set standards by the implementation of innovative and renewable energy.”

On the roof of the Outlet center, a photovoltaic generating station of 1,000 square meters is planned. Another 140 square meters of solar modules will be integrated in the window front. Furthermore, the roof of PUMA Plaza will be replanted on a surface of 1,500 square meters. Water will partly be heated by solar energy. Presence detectors ensure energy conservation by turning out the light when an employee leaves his workplace. Concrete core temperature control ensures sustainable heating and cooling and is up to the highest ecological standards.

The Institute for Energy and Construction (ieg) in Nuremberg issued an energy pass for the new PUMA headquarters. Besides environmental protection, the next generation of an optimal working environment is vitally important to the Sportlifestyle company. The new headquarters PUMA Plaza is designed in a classy and modern ambiance, perfectly representing PUMA’s philosophy. Via ambient simulation, ample and light-flooded open-plan offices have been conceived, fusing functional design and the highest possible flexibility. Conform to PUMA’s flat hierarchy and decentralized corporate structure; spaces can be modified easily through mobile facilities, according to projects and workgroups.

Source: Puma

Puma Q3 results

Puma announced yesterday company's results for 3rd quarter of 2007. The company talked about profit, sales, EBIT, EPS, lincesed business and more...

Wanna know the Puma results? Read below:

Puma Press Release:

Highlights Q3

• Consolidated sales at € 670 million

• Strong gross profit margin at 53%

• EBIT reached € 124 million, up versus last year

• EPS at € 5.56 versus € 5.41 Highlights First Nine Months

• Global brand sales increase 4% currency adjusted

• Consolidated sales up more than 3% currency adjusted

• Gross profit margin above 52%

• EBIT at € 320 million, representing 17% of sales

• EPS at € 14.40 compared to € 14.36 Outlook 2007

• Good improvements in orders: up more than 8% currency adjusted

• Management reconfirms sales and earnings guidance for FY 2007 Sales and Earnings Development

Global Puma brand sales increase 4% In Q3, PUMA’s branded sales, which include consolidated sales and license sales, reported € 753.4 million, a slight decline of 0.6% on a currency neutral basis. During the nine months period ending September, global Puma brand sales increased 3.8% to € 2,137.4 million. Like-for-like, Puma Footwear sales increased 1.5% to € 1,177.6 million, Puma Apparel rose by 5.9% to € 759.2 million and Puma Accessories improved by 10.1% to € 200.5 million.

Licensed business up almost 8%

The licensed business decreased slightly in Q3 by 1.1% currency adjusted to € 83.0 million, mainly due to the announced expiration of the Korean license at year-end 2007. Year-to-date, licensed sales increased by 7.7% to € 268.3 million. Based on the licensed turnover a royalty and commission income of € 7.6 million or € 26.1 million respectively was realized, representing a gross yield of 9.2% on licensed sales in the quarter and 9.7% year-to-date.

Consolidated sales up more than 3%

Due to the early shipments in June (as reported with the Q2 release), consolidated Puma sales were slightly down at 0.5% currency adjusted totaling € 670.4 million in Q3. By segments, Puma Footwear decreased 6.9% to € 376.3 million, Puma Apparel was up 8.7% to € 246.3 million and Puma Accessories improved 10.6% to € 47.8 million. Sales after nine months were up 3.2% currency adjusted to € 1,869.0 million. In total, Puma Footwear improved 1.0% to € 1,110.7 million, Puma Apparel 6.8% to € 632.6 million and Puma Accessories 6.3% to € 125.7 million.

Gross Puma profit margin above 52% In Q3, gross profit margin increased by strong 270 basis points reaching 53.0% compared to 50.4% last year. For the nine months period gross profit margin was a favorable 52.5% compared to 51.4%. Puma Footwear margin increased from 51.2% to 52.3%, Puma Apparel margin from 51.2% to 52.5%, and Puma Accessories stood with 53.9% almost flat on last year’s level.

SG&A

In absolute amounts, SG&A expenses were flat in Q3 but increased 1.8% after nine months totaling € 228.1 million and € 656.0 million respectively. As a percentage of sales, the cost ratio for Puma increased from 32.6% to 34.0% during Q3 and from 34.1% to 35.1% after nine months.
For the nine months period, marketing/retail expenses increased 0.7% and accounted for € 314.8 million or 16.8% of sales versus € 312.6 million or 16.6% last year. Puma's product development and design expenses grew 8.1% to € 43.0 million representing 2.3% of sales, a slight increase of 20 basis points. Other selling, general and administrative expenses were up 2.2% to € 298.2 million, or from 15.5% to 16.0% of sales.

Puma EBIT at € 320 million EBIT in Q3 developed stronger than sales leading the EBIT margin up from 17.6% to 18.5%. In absolute terms, Puma EBIT increased 0.6% to € 123.8 million. Puma EBIT accumulated over the nine months period, amounts to € 319.7 million versus € 324.6 million, representing an almost flat operational margin of 17.1%.


Taking into account an interest result of € 3.7 million in Q3 and € 8.5 million after nine months, pre-tax profit was up by 1.8% to € 127.5 million in the quarter and down by 0.8% to € 328.2 million year-to-date. The tax ratio after nine months was 29.0% therefore on last year’ level.
Puma earnings per share Net earnings in Q3 reached € 89.1 million versus € 87.1 million and € 230.8 million compared to € 230.3 million after nine months. Hence, the net return improved from 12.5% to 13.3% and from 12.2% to 12.3% respectively.

Puma earnings per share increased by 2.7% to € 5.56 in Q3. Year-to-date earnings per share totaled to € 14.40 compared to € 14.36. Diluted earnings per share were calculated at € 5.57 (€ 5.39) and € 14.39 (€ 14.27) respectively. Net Assets and Financial Position
Equity Total assets grew by 14.2% to € 1,955.1 million as of September 30, 2007. The equity ratio stood at 60.0% compared to 60.8% last year.

The Puma company has not bought back any shares during the last quarter and has currently no treasury stocks on its balance sheet. Hence, share capital consists of 16,027,464 shares end of September. The Puma average number of outstanding shares for the nine months period calculates to 16,027,289.

A resolution adopted by the Annual General Meeting authorizes the company to purchase up to ten percent of the share capital until September 1, 2008.

Working capital As expected, inventory growth was further reduced and is now up by 8.9% to € 368.2 million versus a growth of 17% end of June. Trade receivables of € 502.0 million are on last year’s level and almost in line with sales development. Total working capital at the end of September improved 2.1% and totaled € 502.2 million compared to € 513.0 million last year.
Capex/Cashflow Capex was € 61.5 million versus € 124.6 million, of which € 4.9 million versus € 73.8 million is related to acquisitions. Free Cashflow amounts to € 149.4 million compared to € -56.3 million last year or € 154.3 million versus € 17.4 million excluding acquisition costs and marks a strong improvement versus last years cash generation.

Strong improvement in net cash position Cash at the end of September increased from € 404.1 million to € 532.5 million. Bank debts grew from € 66.9 million to € 69.3 million. As a result, the net cash position improved strongly from € 337.2 million to € 463.2 million year over year, due to the positive cashflow.

Regional Development

The Puma EMEA region reported sales of € 376.5 million in Q3, a currency adjusted increase of 1.1%. Taking the early shipments of June into account, sales would have been up in mid single digits for the quarter. Year-to-date, sales increased 5.5% and totalled € 1,020.2 million. Gross profit margin year-to-date reached 54.5% compared to 54.2% last year. The order book end of September was up 12.4% to € 580.5 million. This reflects a significant improvement versus existing orders end of June 2007.

Puma sales in the Americas were down 8.8% currency adjusted reaching € 166.7 million in Q3. During the nine months period sales declined by 4.7% to € 486.4 million, while the gross profit margin improved 290 basis points reaching 49.7%. Orders on hand end of September were down 8.4% to € 237.8 million. As expected, sales in the US market were down 9.7% in Q3 and 10.1% after nine months. This is caused by a continuous moderating environment in the US mall-based business. However, due to the decline of the key-account ratio the gross profit margin increased significantly by more than 500 basis points. As of September 30, 2007 orders for the US decreased 23.5% to $ 187.5 million, mainly due to the mall-based retailers.

In the Asia/Pacific region, sales improved 7.1% to € 127.2 million in Q3 and by 8.6% to € 362.4 million year-to-date. The gross profit margin reached 50.7% versus 50.6% last year. Orders on hand were up 19.1% and totaled € 247.2 million. Outlook 2007 Orders up more than 8% currency adjusted Total orders on hand as of September increased 8.3% currency adjusted totaling € 1,065.5 million and representing significant improvements versus end of June 2007. The orders are mainly for deliveries scheduled for Q4 2007 as well as Q1 2008. In terms of product segments, Footwear orders are up by 3.2% (currency adjusted) to € 659.7 million, Apparel by 19.6% to € 345.4 million and Accessories by 8.5% to € 60.4 million.

Management reconfirms sales and earnings guidance Management confirms sales and earnings guidance for FY 2007. In terms of sales, growth is expected to be in the low single-digits on a currency neutral basis. However, gross profit margin should come in better than anticipated but compensated by a higher cost ratio. Hence, EBIT should almost develop in-line with sales providing an EBIT margin nearly on last year’s level. Tax rate is estimated at or around 29%.
Jochen Zeitz, CEO: "Based on the positive momentum in our order backlog, we anticipate a solid finish to 2007 to achieve our full-year guidance."

Source: Puma

Puma eco-friendly

Puma obtained one of the best application level A+ for social standards, environment protection and restricted substances. Puma was also recognized as a company who is involved in ecological life on the Earth.

Puma Press Release:

PUMA has issued its new Sustainability Report 2005/2006. For the first time, German Technical Service and Assurance Provider TÜV Rheinland verified and certificated the report. Greenpeace and Fair Labor Association (FLA) have explicitly recognized the social and ecological commitment of the Sportlifestyle company. The report is published in accordance with the demanding guidelines of Global Reporting Initiative (GRI), a large multistakeholder network. PUMA’s Sustainability Report obtained the best GRI application level A+ - a first in the sporting goods industry. Moreover, according to Swiss Institute SAM (Sustainability Asset Management), PUMA will continue to be ranked in Dow Jones and STOXX Sustainability Index next year.

On a total of 84 pages, PUMA presents its extensive activities in the area of social standards, environment protection and restricted substances. The Sportlifestyle company clearly outlines the continuous improvement of S.A.F.E. (Social Accountability and Fundamental Environmental Standards)-activities. Their aim is not only to generate fair working conditions, protect the environment and manufacture ecologically compatible products. An active dialog with different stakeholders (and pressure groups) is also of great importance to PUMA.

TÜV Rheinland certifies that "PUMA has developed a significant and operational management system for environmental and social aspects." Results of the examination confirm that the Sportlifestyle company successfully implemented the "Code of Conduct", the "Code of Ethics" and the "Handbook for Environmental Issues". Those guidelines are generally binding, not only for all PUMA headquarters but also for the 369 independent suppliers and manufacturers named in the report.

The independent environmental organization Greenpeace confirms that PUMA’s commitment sets standards. Greenpeace has checked different companies regarding eco friendliness of their products, ranking them from red to green. After examination of PUMA’s product range, the Sportlifestyle company has obtained the best category "green". Fair Labor Organization (FLA) is in agreement with this positive appraisal: PUMA has been accredited this year as full member for the first time. FLA is a non-profit organization dedicated to improve working and production conditions. As accredited member, the Sportlifestyle company thoroughly supports the strict guidelines and unannounced audits by FLA.

Jochen Zeitz, CEO and Chairman, PUMA AG: "We are pleased that PUMA’s social and ecological commitment has been recognized not only by analysts and experts, but also by independent organizations such as TÜV Rheinland and Greenpeace. Through responsible and sustainable corporate governance, we want to ensure that our aim to be the most desirable Sportlifestyle company is not only oriented towards economical, but also towards social and environmental criteria."

In the course of its transparent ecological and social policy, PUMA’s social audits have been seen off by a journalist for the first time, describing his experiences in the Sustainability Report. Bernhard Bartsch, Asia-correspondent for German newspaper Berliner Zeitung and magazine brand eins, characterizes visits of suppliers in Turkey, Vietnam and China. He portrays how PUMA auditors inspect the realization of safety regulations in China or compliance of adequate wages in Vietnamese factories.

Corporate social responsibility is getting ever more important in today’s global business community. For many years now PUMA has continuously improved its S.A.F.E. activities to ensure high social and environmental standards along its entire supply chain. In order to maximise transparency in this sector the company publishes sustainability reports.

PUMA is the global Sportlifestyle company that successfully fuses influences from sport, lifestyle and fashion. PUMA’s unique industry perspective delivers the unexpected in Sportlifestyle Footwear, Apparel and Accessories, through technical innovation and revolutionary design. Established in Herzogenaurach, Germany in 1948, PUMA distributes products in over 80 countries.

Source: Puma