PUMA reported results for the fourth quarter and full year.
2012 Fourth Quarter Highlights
•PUMA's consolidated sales climb by 11.7% in Euro terms to € 804.7 million.
•Gross profit margin declines to 44.6% due to inventory clearance.
•EBIT before special items falls slightly to € 42.8 million.
•Special items of € 98.2 million booked in the quarter.
•Net earnings come in at € -42.6 million, impacted by special items.
2012 Full Year Highlights
•PUMA's full year consolidated sales rise by 8.7% in Euro terms to just under € 3.3 billion.
•Gross profit margin abates to 48.3%.
•EBIT before special items softens by 12.8% to € 290.7 million.
•Special items of € 177.5 million caused by Transformation and Cost Reduction Program, Spain Arbitration and restructuring of businesses in Greece, Cyprus and Bulgaria.
•EBIT including special items totals € 113.2 million.
•EPS amount to € 4.69 after € 15.36 last year.
Outlook for the Financial Year 2013
•Transition Period defined within our strategy extended into 2013
•Launch of "The Nature of Performance" brand platform and new product innovations to revitalize Performance categories
•Management expects 2013 sales unchanged from the 2012 level
•Management envisages an increase in EBIT before special items of low- to mid-single digits and a significant improvement of net earnings
"Despite a continuously challenging market environment, particularly in Europe, PUMA delivered a strong sales performance in the fourth quarter, enabling us to meet our sales projections for the full year of 2012," said Franz Koch, CEO of PUMA SE. "We have completed defining the scope of PUMA's Transformation and Cost Reduction Program, and will continue with the implementation of all measures throughout 2013 to improve the company's profitability. I want to reiterate that it is not our priority to push for sales growth at any cost, but instead focus on improving desirability for the PUMA brand."
Strong performances in Asia and North America give impetus to PUMA's Fourth Quarter Sales Growth
PUMA delivered a strong sales performance in the fourth quarter of 2012. Boosted by double-digit sales growth in Asia and North America, PUMA's consolidated sales increased by nearly 12% in Euro terms or 8.7% currency adjusted to € 804.7 million from October 1 to December 31. The numbers were supported by the performance of Cobra PUMA Golf, with its products resonating exceptionally well with consumers.
Sales Performance by Segment
All of PUMA's product segments grew in the fourth quarter of 2012. Footwear was up by 8.6% in Euro terms to € 367.9 million. On the Performance side, PUMA's Faas footwear family continued to appeal to consumers while the PUMA Suede range fuelled sales in PUMA's Lifestyle footwear business.
Apparel climbed by 15.2% in Euro terms to € 316.6 million after increasing demand for Fitness & Training gear. Accessories rose by 12.3% in reported terms to € 120.1 million driven by our US joint ventures Janed and Wheat as well as our Cobra PUMA Golf business.
Sales Performance by Region
While PUMA's sales increased in all regions, performance in the Asia/Pacific region was exceptionally satisfactory during the fourth quarter. Sales rose by 16.2% to € 246.7 million while PUMA expanded in virtually all markets. Japan and India in particular excelled on the back of demand for evoSPEED Apparel products. Seasonal factors also played a part, with winter collections gaining traction with consumers, especially PUMA branded duffel coats and parka collections in Korea, China and Japan.
PUMA was also able to reverse the slight declines from previous quarters in the EMEA region, with sales rising by 7.0% in Euro terms to € 253.4 million. This performance was supported by strong growth in Germany, Sweden and Switzerland delivering satisfying growth rates. PUMA's Lifestyle footwear ranges sold well, especially the PUMA Suede in developed countries as well as our Motorsport collections in emerging markets.
In the Americas, PUMA continued to increase sales at a favorable rate, improving by 12.2% in reported terms to € 304.5 million. This growth was driven mainly by the Cobra PUMA Golf business as well as by undiminished demand for Fitness, Lifestyle and Motorsport products.
Sales Performance Retail
PUMA's retail business increased by a significant 23.0%, with the company operating 60 additional stores when compared to the fourth quarter of last year. As in the three previous quarters, our comparable store sales developed positively, while E-commerce sales rose by 23.4% over the same period.
Full year sales increase to almost € 3.3 billion
Consolidated sales for the Full Year climbed 8.7% in Euro terms or 4.6% currency adjusted to € 3,270.7 million. With this record result, PUMA achieved its sales target for the full year.
Sales Performance by Region
While sales in EMEA softened by 0.8% in Euro terms to € 1.3 billion due to a weaker performance in Western Europe, there were strong performances in Germany, Russia and Turkey in 2012.
The Americas delivered a satisfying performance, including North America, Mexico and Argentina, increasing in Euro terms by 16.6% to € 1.13 billion. Asia/Pacific was equally strong, rising by 15.3% to € 841.7 million, supported by good numbers in Japan and India in particular.
Sales Performance by Segment
In terms of segments, Footwear grew 3.6% in Euro terms to € 1.6 billion. Apparel rose by 11.2% to € 1.15 billion, while Accessories posted an impressive 20.7% increase to € 523.6 million also bolstered by consolidation effects of the new joint ventures.
Retail sales climb by € 109.0 million
Sales in our owned and operated retail outlets rose by 21.2% in 2012 to € 623.9 million, an increase of € 109.0 million from 2011. This is due in part to the expansion of our retail base compared to the end of 2011. As a percentage of total turnover, retail sales rose from 17.9% to 19.1%. E-commerce also posted a gain, up 16.5% for the year.
Source:
http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=121113
