Puma AG reported that consolidated sales for the 2003 third quarter increased by 37.8%, or 43.5% currency-neutral, to 402.3 million ($453.3 million) from 292 million ($287.3 million). Apparel recorded the strongest growth, increasing 46% to 110.2 million ($124.2 million) in Q3. Footwear sales grew by 34.7% to 267.5 million ($301.4 million) and accessories increased 36.5% to 24.5 million ($27.6 million). Barring the effects of the first-time consolidation, total organic growth of 28.2% or 33.9% currency adjusted was realized.
In the first nine months of 2003 sales jumped 43.2%, or 51.6% on a currency neutral basis, to 1.046 billion ($1.16 bn) from 730.6 million ($677.5 million) and exceeded the 1 billion mark for the first time in the companys history. Before first-time consolidation, growth in the first nine months reached 35.3% or currency adjusted 43.6%.
In terms of product segments, apparel experienced the fastest growth during the first nine months (49%) and reached 268.2 million ($298.3 million). Footwear increased 43% to 718.9 million $799.6 million) and accessories grew by 23.8% reaching sales of 59.2 million ($65.8 million).
In Europe, Q3 sales increased 27.7% to 282.2 million ($317.9 million) and in the first nine months of this year sales surged 41% to 725 million ($806.4 million). Almost every single European market reported strong double-digit growth.
Within the Americas, the U.S. completed another favorable quarter and sales in U.S. Dollar were up by 46.2% to $69.6 million. Due to the strong Euro currency this reflects a growth rate of 26.8%. Sales in the first nine months increased by 42.5% to $201 million, on a currency neutral basis, and by 18.7% to 180.6 million in Group currency. In total, the Americas increased by 32.6%, or 53.1% Currency neutral, to 71.1 million ($80.1 million) in the third quarter and by 22.8%, or 47.4% currency neutral, to 203.6 million ($226.5 million) in the first nine months.
Due to the takeover of the footwear and accessories business in Japan, effective April 1st of this year, the Asia/Pacific Rim Region showed the strongest growth rate. Sales in Q3 increased by 278.2% to 41.6 million ($46.9 million) and by 174% to 95.2 million ($105.9 million) year to date. Without Japan, sales increased 24.3% or 7.4% respectively. Currency adjusted, this result marks an increase of 9.7% during the first nine months.
Sales in the Africa/Middle East region improved by 16% to 7.3 million ($8.2 million) in Q3 and 42.3% to 22.5 million ($22.5 million) in the first nine months of the year. Africa as well as the Middle East contributed to the favorable development.
In the third quarter worldwide branded sales, which consist of consolidated and licensed sales, increased by 25.6% to 512.5 million ($577.4 million). In the first nine months, revenues increased 27.2% to 1.3 billion ($1.5 bn). Currency adjusted, worldwide branded sales increased 34.4%.
PUMAs gross profit margin reached an all-time high of 50.4% in Q3. This reflects an increase of 630 basis points year over year, which was primarily due to the strong Euro. Apparel reported the strongest improvement jumping from 40.5% to 48.1%. Footwear and accessories also improved significantly from 45.4% to 51.5% or 44.9% to 49.2% respectively.
Year-to-date, the overall margin further improved and reached 48.9% versus 43.5%. Footwear climbed from 44.2% to 49.7%, apparel jumped from 40.9% to 47.2% and accessories from 45.5% to 47.1%.
Net income rose from 33.7 million ($33.2 million) to 69 million ($77.7 million) in Q3 and from 72.3 million ($67.0 million) to 154.8 million ($172.2 million) in the first nine months. Diluted earnings per share reached 4.33 ($4.88) versus 2.13 ($2.10).
Future orders increased by 28.8% to 645.6 million ($748.7 million) as of September 30, 2003. Currency adjusted orders increased 34.4%. Excluding Japan, orders were up by 16.5% or 22.1% when currency adjusted. The bulk of these orders include deliveries for Q4 2003 as well as for H1 2004.
By product segment, footwear increased 24.7% to 464.5 million ($538.7 million), apparel by a healthy 35.4% to 152.8 million ($177.2 million) and accessories 74.7% to 28.3 million ($32.8 million). On a regional basis, the order situation is as follows: Europe increased 20.8% to 447 million ($518.4 million). Orders in Africa/Middle East were up 94.5% to 18.2 million ($21.1 million) and the Asia/Pacific rim region increased 314.7% to 82.5 million ($95.7 million). Excluding Japan, orders in this region increased by 6.8% or currency adjusted by 15.1%.
Futures in the Americas increased 15.2% in U.S. Dollar terms which translated to a 4.2% decline in Euros to 97.9 million ($113.5 million).