PUMA SE Announces Consolidated Earnings Results for the Second Quarter and Six Months of 2014; Provides Earnings Guidance for the Financial Year 2014
Jul 29 14
PUMA SE announced consolidated earnings results for the second quarter and six months of 2014. For the quarter, the company’s consolidated sales in the second quarter of 2014 were in line with expectations, rising by 0.6% currency adjusted to EUR 652 million. However, due to continued currency weakness in Turkey, Russia, South Africa, India, Japan and the Americas, sales declined by 5.8% in Euro terms. The negative currency impact on sales and gross profit led to a decline in PUMA's operating profit (EBIT) from EUR 31 million to EUR 13 million for the second quarter of 2014. The company’s consolidated net earnings declined from EUR 18 million to EUR 4 million impacted in part by a slightly higher tax rate in the quarter due to tax expenses related to prior years. As a result, earnings per share decreased from EUR 1.17 to EUR 0.28 in the second quarter of the year.
For the half year 2014, the company announced that currency adjusted sales were flat in the first half of 2014 at EUR 1.38 billion. Continued currency weakness in the aforementioned countries led to a decline of 6.5% in Euro terms. Weak currencies continued to impact reported sales and gross profit. The company’s EBIT therefore declined from EUR 110 million to EUR 71 million for the half year, equivalent to 5.2% of sales. The negative currency development during 2014, particularly in Emerging Markets, had a negative impact of approx. EUR 15 million on the EBIT, equal to 1.1% of net sales. Half year consolidated net earnings fell from EUR 68 million to EUR 40 million, with earnings per share declining from EUR 4.54 to EUR 2.66. The company’s negative free cash flow improved from EUR 112 million to EUR 72 million for the first six months of 2014. This was mainly due to lower working capital requirements. Capital expenditure rose from EUR 19 million to EUR 31 million as the company continued to invest in the opening and refurbishment of selected retail stores, as well as office and IT equipment. Free cash flow increased by EUR 40 million due to improved working capital.
The company provided earnings guidance for the financial year 2014. For the period, the company 2014 continues to be a turnaround year for it, where the brand will be re-established in the market place and brought back to a path of profitable and sustainable growth in the mid-term. To support this turnaround, it will continue to invest strongly in marketing and sports assets, while maintaining tight control on other operating expenditures. Given the company’s results in the first half of the year, the company continues to expect flat full year currency adjusted net sales and a slight increase in the gross profit margin, as PUMA replaces lower tier distribution with higher tier distribution channels. OPEX is still expected to increase significantly based on increased Marketing investments, particularly in the second half of the year. The company’s full year guidance for EBIT and net earnings (approximately 5% and 3% of net sales respectively) remains unchanged from the first quarter; the company reiterates that the continued volatile currency movements may have a negative impact of around 50 basis points on the EBIT and Net Earnings margin for the year.
PUMA SE Announces Executive Changes
Jul 29 14
PUMA SE announced that Andy Koehler, chief operating officer (COO) will leave PUMA for personal reasons, effective July 31, 2014 and Lars Radoor Soerensen has been appointed chief operating officer (COO) as of August 1, 2014. Lars joined PUMA in November 2013 and has led the areas of business processes and intelligence as well as information technology. Prior to joining PUMA, Lars was previously the chief operating officer (COO) at Bestseller and Esprit. Andy Koehler will be available to the Kering Group as a consultant.
PUMA SE Announces Consolidated Earnings Results for the First Quarter Ended March 2014; Provides Earnings Guidance for the Financial Year 2014
May 14 14
PUMA SE announced consolidated earnings results for the first quarter ended March 2014. For the quarter, the company’s consolidated sales fall by 0.5% currency adjusted to EUR 726 million. Operating profit (EBIT) decreased from EUR 79 million to EUR 59 million. The financial result improved from negative EUR 4.0 million to negative EUR 3.2 million in the first quarter. The result remained negative due mainly to currency conversion impacts. Consolidated net earnings declined by 29.2% from EUR 50 million to EUR 36 million. As a result, earnings per share decreased from EUR 3.36 to EUR 2.38 in the first quarter of 2014. Capex increased from EUR 9 million to EUR 12 million, which was mainly invested in the opening and refitting of selected retail stores as well as office and IT equipment.
The company provided earnings guidance for the financial year 2014. For the year, based on the results of the first quarter and assumptions at the beginning of the year, the company reported that net sales are expected to be flat and EBIT/net earnings (approx. 5% /3% of net sales respectively) remain unchanged.