PARIS — Puma AG, Europe’s second-largest sporting goods firm after Adidas, looks on track to accomplish its “Back on the Attack 2011-15” five-year strategic plan to generate annual revenues of 4 billion euros, or $5.38 billion at current exchange rates, by 2015.
Citing a strong start to 2011, Puma said it is forecasting a revenue increase in the midsingle-digit percentage range that should propel it to a full-year sales target of 3 billion euros, or $4.03 billion.
The sports-lifestyle giant said first-quarter net income increased 7.1 percent to 77.7 million euros, or about $109.5 million, from 72.5 million euros a year ago, or $97.3 million.
Dollar figures are converted from euros at average exchange rates for the three-month periods ended March 31 for the respective years.
The firm cited exceptional growth in the Americas, up 23.5 percent, with almost every country in Latin America registering double-digit growth. Sales in the Asia-Pacific region rose 16.3 percent.
Reporting a spike in accessories sales of 42.4 percent, to 114.4 million euros, or $161.2 million, fueled by the recent addition of the Cobra Golf brand to its stable, the Herzogenaurach, Germany-based company posted its strongest results yet for the period, with a 13.2 percent rise in consolidated sales to 773.4 million euros, or $1.09 billion, versus 683.3 million euros, or $917.7 million, in the equivalent year-ago period.
“We were even able to mitigate the negative impact we saw from the disastrous events in Japan last month as our Asia-Pacific region contributed with an increase in sales to the overall solid company performance,” stated Jochen Zeitz, Puma’s chief executive officer.
During a conference call, Zeitz said initiatives lined up to offset increases in labor and raw materials will include the introduction of price increases in the fourth quarter, which will kick in “on a significant scale” starting in January. “[The price increases] will have an effect this year and all efforts are going into 2012 to compensate as much as possible in order to increase the margin again,” he said. Zeitz added Puma intends to strengthen its traditional and online media spend over sponsorship contracts.
Notable sporting events for the firm this year include the FIFA Women’s World Cup in Germany this summer and various sailing events.
Zeitz confirmed that Franz Koch will host the presentation of Puma’s second-quarter results in July, as the company’s new ceo, following approval by shareholders at Puma’s recent annual general meeting for the company’s transformation from a German Aktiengesellschaft, or AG, to a European Societas Europaea, or SE.
The conversion is expected to be completed by July at the latest. Zeitz is to become head of parent company PPR’s sport and lifestyle group.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast