Puma AG's sales rose 4.4% to 595 million ($810 million) during the second quarter on a reported basis, according to the quarterly report of its parent, French-based luxury and retail conglomerate PPR SA. Operating income was flat for the period versus Q2 last year, but EBITDA surged 126% to 204 million ($278 million).
In the half, Puma's sales for PPR inched up 3.8% to 1.29 billion from 1,25 billion in H1 last year but were down 3.8% at constant currency rates. Puma Apparel sales were down 7.0% in the first half and represented 33% of total sales. Footwear revenues dipped 1.4% for the first half and represented 56% of net sales. Accessories sales fell 5.9% and represented 11% of sales for the period.
In a statement, PPR said Puma's team sports business in the first half was affected by a lack of major sporting events. In the EMEA (representing 50% of Puma's sales), sales were down 10% against tough-comparisons in the year-ago period. Asia Pacific (23% of sales) was off 3% for the half, impacted by “tough market conditions.” PPR said Puma had “strong growth” in the Americas (27% of sales), growing 9% for the half, driven by footwear and apparel. They indicated a “continued good performance in the U.S.”
Operating income in the half was down 6.6% to 176.7 million ($250.6mm) for the period versus Q2 last year while EBITDA was down 3.7% to 208.1 million ($296 million). PPR said Puma's gross margins rate in the half decreased due to “intensified promotional offers.” This offset “good control” of operating expenses, lower marketing expenses, and a 45% reduction in gross operating investments.
