Puma AG reported that consolidated net sales for the 2004 fourth quarter increased 23.8% on a currency-adjusted basis. In Euro terms, sales were up by 19.9% to 273 million ($354.1 mm). Footwear sales increased 29.1% on a currency-neutral basis to 175.9 million ($228.2 mm), or a 25.2% increase in Euros. Apparel climbed 14.4% in currency-neutral terms to 76.6 million ($99.4 million), an 11.4% increase in Euro terms. Accessories grew 16.1%, or 12.6% in Euros, to 20.9 million ($27.1 mm).
All regions contributed with a double-digit growth to the successful quarter. Europe sales increased 12.4% in the quarter to 143.1 million ($185.6mm), while the Americas jumped 44.4% to 74.2 million ($96.3 mm). U.S. sales, measured in U.S. Dollars, were up 16.0% to $76.0 million from $54.4 million in Q4 last year. Asia/Pacific region sales rose 11.3% in the quarter to 47.1 million ($61.1 mm)and AME, which includes Africa and the Middle East, saw sales increase 34.3% to 9.0 million ($11.7 mm).
The gross profit margin reached 51.9%, an increase of 440 basis points and PUMAs highest level in a fourth quarter. Because of investments in marketing/retail as well as product development and design, operating expenses increased from 33.7% to 35.8% of sales. Due to the favorable sales development and a significant improvement in gross profit margin, pre tax profit rose 56.4% over last year.
Net earnings improved from 24.5 million ($29.2 mm) in Q4 last year to 37.1 million ($48.1 mm) in Q4 2004. Earnings per diluted share amounted to 2.30 ($2.98) compared with 1.29 ($1.54) in last years quarter.
For the year, currency-adjusted consolidated sales rose by 22.7% to 1.53 billion ($1.90 bn) from 1.27 billion ($1.44 bn), an increase of 20.1% in Euros. Sales in the largest segment, Footwear, were up 17.7%, climbing to 1.01 billion ($1.26 bn), which corresponds to a currency-adjusted increase of 20.3%. As expected, Apparel contributed significantly to the growth in sales, posting a 23.5% sales gain to 416 million ($517.4 mm). This corresponds to a currency-adjusted increase of 26.1%. Accessories sales, consisting mainly of bags, balls and sport accessories, were up 32.4% to 102.9 million, or $128.0 million.
The share of PUMAs owned-retail operations of consolidated sales increased from 8.7% to 11%.
Gross profit margin in 2004 improved 320 basis points to 51.9% from the previous years level of 48.7%. Net earnings grew faster than sales for the sixth consecutive year. With an increase of 43.5%, net profit reached 257.3 million ($320.0 mm), or 15.74 ($19.58) per diluted share, compared to 179.3 million ($203.0 mm), or 10.90 ($12.34) per diluted share. The net return stepped up successfully from 14.1% to 16.8%.
Order backlog at year-end topped 800 million mark for the first time. This was the ninth consecutive year of orders increase. Currency-adjusted orders were up 17.7% from the previous year. The corresponding increase in Euro was 13.9%, bringing orders to 823 million ($1.12 bn).
In the segments, Footwear upped orders by 14.7% (18.7% currency adjusted) to 580 million ($791.4 mm). Apparel was at 196 million ($267.4 mm), rising by 7.8% (10.6% currency-adjusted). Orders for Accessories went up by 36.2% (40.3% currency-adjusted) to 46 million ($2.8 mm).
