First quarter results, impacted by both currency and mix, went was planned for Puma as it continues to make improvements to its balance sheet and await the launch of its "Forever Faster" repoitioning strategy ahead of Back-to-School. Nwt income fell 29% as revenues declined 7% for the period ended Mar.31. Gross margin was off 60 b.p. to 48.5%. Current expections call for a difficult Q2 followed by improved results in both Q3 and Q4. The ongoing volatility in currencies could impact FY EBIT and net income by 50 b.p., the compant said.
Puma, which recently finalized its Spring/Summer 2015 product line, continues to tighten its organization ahead of the planned Augus launch of the "Forever Faster" marketing effort that it hopes will turn around its wholesale revenue for fortunes in H2 and beyond. The company confirmed that its H2 order backlog was up without offering specifics.
Senior management readily admits the brand's North American market share has not been growing. But there is hope that new marketing effort and products combined with renewed focus on re-establishing ties to key accounts can reverse that trend. The Puma Lab at Foot Locker is currently in place in more than 100 U.S. doors and producing a significant increaseincomparable sales.
