Pumas first quarter branded sales, which include sales of licensed products, increased 15.3% to 737 million ($83.8 mm. Adjusted for currency changes, this increase was 11.8%. Footwear was up 12.5% while apparel sales increased 19.1% and accessories grew by nearly 20%. Total company consolidated sales increased 29.5% during the first quarter to 643 million ($771.1 mm) exceeding internal expectations. Organic growth was 10.7% while new consolidations contributed over 18 points of the increase.
Footwear sales increased 18% in Euros while posting a 14% currency neutral increase. Apparel sales jumped 63.1% to 202 million ($242.2 mm). On a currency-neutral basis, apparel sales grew 59.8%. Accessories sales increased 21.6% to 42 million ($50.4 mm) and 19.3% on a currency-neutral basis. Comparable licensed sales increased 9.9% to 87 million ($104.3 mm). However due to several license take-backs, overall licensed revenue declined 34.1%. Royalty commission income was 8.5 million versus 12.5 million last year.
Gross margin declined 100 basis points to 52.4% of sales. Footwear margins fell 160 basis points while apparel margins declined 50 basis points and accessories margins increased 230 basis points.
SG&A expenses increases, as planned, to 31.9% compared to 28.4%. Marketing/retail expense increases represented the majority of the increase with a 300 basis point increase while product design/development expenses climbed from 1.8% of sales to 2% of sales.
Pumas EBIT margin remained above 20% at 20.6% of sales. Net earnings inched up 2.5% to 93 million ($104.1 mm) compared to 91 million ($119.3 mm) last year. Earnings per share increased 2.7% to 5.83 versus 5.68. Diluted EPS was 5.78 compared to 5.63.
