PARIS — Despite ongoing challenges such as rising raw material costs, Puma SE, Europe’s second-largest sporting goods firm after Adidas, expects to achieve its full-year sales target of 3 billion euros, or $4.31 billion at current exchange rates.
The company, which published second quarter results Wednesday, said it is sticking to its guidance of a mid-single digit increase in net earnings on a full year basis.
The Herzogenaurach, Germany-based firm reported a 10.6 percent rise in second-quarter net profits to 37.6 million euros, or $54 million, from 34 million euros, or $43.3 million, in the same period last year.
Revenues in the three months ended June 30 rose 9.4 percent to 673.5 million euros, or $968.9 million, versus 615.4 million euros, or $785.1 million, in the year-ago period, strengthened by robust growth in Latin America and Asia. Boosted by a speedier-than-expected recovery in Japan, first quarter sales in the Asia Pacific region grew 20.1 percent in currency adjusted terms to 158 million euros, or $227.3 million.
In the half, net profit climbed to 115.3 million euros, or $161.7 million, from 106.6 million euros, or $141.8 million, a year earlier.
Currency conversions were made at average exchange rates for the periods to which they refer.
“I could not have asked for a better start to my new position…than to announce the best second quarter in Puma’s history in terms of sales,” stated Franz Koch, whose new role as Puma’s chief executive officer became effective Monday.
This followed the completion of the company’s transformation from a German Aktiengesellschaft, or AG, to a Societas Europaea, or SE, one-tier European corporation, with a view to developing further synergies with the sport and lifestyle division of PPR, Puma’s majority shareholder.
Former Puma ceo Jochen Zeitz is now head of the sport and lifestyle division and chief sustainability officer for PPR. He is also a member of PPR’s executive committee and chairman of the administrative board of Puma SE.
During a conference call, Koch confirmed plans to implement selective price increases of up to 10 percent starting in the fourth quarter and carrying over into the first half of 2012, in a bid to offset volatile raw material costs and rising wages in the Asia Pacific region. “We are reviewing prices for fall-winter 2012,” he said.
With the Cobra Golf brand and a new Spanish subsidiary among recent acquisitions and investments, no new acquisitions are anticipated for the time being, according to Koch.
Puma’s footwear sales in the second quarter rose 16.2 percent to 352.6 million euros, or $507.2 million, in currency adjusted terms, boosted by the brand’s running category, specifically its bestselling hi-tech racer shoe, Puma Faas. Accessories sales grew 15 percent to 96.7 million, or $139.1 million, while apparel sales were up 10.7 percent to 224.3 million euros, or $322.7 million.
Puma, with its “Back on the Attack 2011-15” five-year strategic plan, aims to generate annual revenues of 4 billion euros, or $5.75 billion at current exchange, by 2015.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)