PUMA AG Rudolf Dassler Sport reported preliminary results for FY 2003 indicating that Puma's global branded sales
(consolidated sales plus sales of licensees) rose by almost 23%, from €1.4 bn ($1.32 bn) to €1.7 bn ($1.92), or up over 30% in currency-adjusted terms. Consolidated sales improved for the ninth consecutive year, increasing 40.0% to €1.27 bn ($1.44 bn) from €910 million ($861 mm), or up 48% in currency-neutral terms. All regions and product segments contributed to the increase.

PUMA’s gross profit margin reached a record level of 48.7%. Despite continued high investments in brand-building initiatives and concepts, total SG&A expenses were further reduced from 33.4% to 29.6% of sales. Pre-tax profit increased by 112.3% to €264 million $299 mm) versus €124 million ($117 mm) in the previous year, and the gross yield improved from 13.7% to 20.7%.

Based on a tax rate of 31.9% (32.0%), consolidated net
earnings rose from €85 million ($80 mm) in 2002 to €179 million ($203 mm) in 2003, corresponding to a net return of 14.1% versus 9.3% in 2002. Earnings per share more than doubled from €5.44 ($5.15) to €11.26 ($12.75).

Despite the increase in balance sheet totals, the equity ratio improved substantially from 48.0% to 54.7%. The net cash position rose from €94 million to €174 million.

Order backlog at the end of 2003 was up 36.0% to €722 million. Excluding the first time consolidation of Japan, orders were up by 26.6%.

Jochen Zeitz, PUMA’s Chairman and CEO said: “The results we have achieved impressively demonstrate the success of our brand and company strategy. In view of PUMA’s positioning as a desirable sportlifestyle brand and the strong order backlog increase for 2004, we are expecting sales growth of over 10% for the sixth consecutive
year.”

During 2003 PUMA’s share price rose 115%, standing at €140.00 at the year’s end.

Preliminary results                  2003         2002       Deviation
                                      EUR          EUR
                                      Mio.         Mio.
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Global brand sales                  1.692        1.380           22,6%
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Consolidated net sales              1.274 100,0%   910 100,0%    40,0%
Gross Profit                          620  48,7%   397  43,6%    56,2%
EBIT                                  263  20,7%   125  13,7%   110,5%
EBT                                   264  20,7%   124  13,7%   112,3%
Net earnings                          179  14,1%    85   9,3%   111,3%
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Outstanding shares, basic          15.932       15.611
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Earnings per share, basic (EUR)     11,26         5,44          107,0%
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Future orders as of Dec. 31           722          531           36,0%
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