Puma AG reported that first quarter consolidated sales reached â¬773.4 million ($1.06 bn), rising 9.3 percent in currency-adjusted terms and 13.2 percent in euro terms when compared to the first quarter of 2010. Footwear revenues were up 6.8 percent currency-adjusted to â¬417.2 million ($570 mm), Apparel sales rose 2.2 percent to â¬241.8 million ($331 mm), and Accessories posted a 42.4 percent increase to â¬114.4 million ($156 mm) for the quarter. The stronger growth in the Accessories product segment was driven in part by the inclusion of Cobra Golf in the numbers this year.
Worldwide Puma brand sales � comprised of consolidated and license sales � rose by 12.5 percent in euro terms (8.8 percent currency-adjusted) to â¬811.1 million ($1.11 bn) from â¬720.8 million ($999 mm) last year.
In regional terms, sales in EMEA grew by 4.4 percent currency adjusted to â¬374.5 million ($512 mm), Asia/ Pacific posted a gain of 6.9 percent to â¬163.9 million ($321 mm) and Puma continued its excellent performance in the Americas with sales growing by 19.9 percent to â¬235.1 million ($224 mm).
â€The first quarter performance was a strong start to 2011 and our Back on the Attack growth plan, as Puma managed to generate strong sales growth,†said company CEO Jochen Zeitz in a release. â€We were even able to mitigate the negative impact we saw from the disastrous events in Japan last month as our Asian/ Pacific region contributed with an increase in sales to the overall solid company performance. For the full year 2011 we continue to expect an increase in net earnings in the mid single-digit percentage range with sales targeting the â¬3 billion milestone for the first time. Puma continues to execute on the Back on the Attack company growth plan and performs at levels consistent with reaching the long-term target of â¬4 billion in sales by 2015. The recent approval of our shareholders to convert Puma from the German Aktiengesellschaft Puma AG to the european Corporation Puma SE will provide our company with a broader international profile, helping to tap into the many opportunities the international Sportlifestyle market offers.â€
The gross profit margin was flat at 52.4 percent. The Footwear segment had a gross profit margin of 51.3 percent of sales, up from 50.9 percent of sales in Q1 2010. Apparel stood at 53.7 percent, down slightly from 53.9 percent. Accessories were at 54.0 percent, also down slightly from 55.7 percent.
Operating expenses before special items rose by 21.6 percent to â¬298.6 million ($408 mm) during the first quarter of 2011. As a percentage of sales, this represents an increase from 35.9 percent to 38.6 percent compared to last year. Reasons for this rise include currency fluctuations, as well as additional investments in Marketing, Sales and Product Design to fuel the companyâ€s â€Back on the Attack†growth plan.
Operating profit came in as expected, improving to â¬111.0 million ($152 mm) from â¬108.7 million ($151 mm). This represents 14.4 percent of consolidated sales, down slightly from a rate of 15.9 percent at this time last year.
Consolidated net earnings increased to â¬77.7 million ($106 mm) from â¬72.5 million ($100 mm) in 2010, an increase of 7.1 percent. Earnings per share rose from â¬4.81 ($6.66) to â¬5.17 ($7.07), and diluted earnings per share rose from â¬4.80 ($6.65) to â¬5.15 ($7.04).
Looking ahead, and taking into account the risk of higher input prices in the form of raw materials and wages for the second half of the year, Puma management indicated the outlook for 2011 continues to be favorable, with improvement in net earnings in the mid-single-digit range for 2011 and targeting the â¬3 billion milestone in sales.