The cost of restructuring took a big bite out of Puma AG’s first-quarter profits, but currency fluctuations worked in the activewear company’s favor as it generated an increase in revenues.
The firm, owned by PPR and based in Herzogenaurach, Germany, reported Friday its net income for the three months ended March 31 fell 93.8 percent to 5.6 million euros, or $7.3 million, from 90.1 million euros, or $135.2 million, during the comparable 2007 period. The more recent quarter includes 110 million euros, or $143.9 million, in pretax restructuring charges. Earnings came to 0.37 euros, or 48 cents, a diluted share versus 5.76 euros, or $8.64, in last year’s quarter.
Sales were up 3.6 percent to 697.4 million euros, or $912.2 million, from 673.3 million euros, or $1.01 billion, and increased 0.8 percent excluding the effects of currency fluctuations. Dollars figures have been converted from euros at average exchange for the period to which they refer.
Highlighting regional growth was a 19.7 percent increase in sales in the Americas, to 178.1 million euros, or $233 million. Even adjusted for currency shifts, sales were up 11.5 percent in the region. In Europe, the Middle East and Africa, Puma’s largest volume region, sales declined 6.4 percent to 366.1 million euros, or $478.9 million, and fell 3 percent when adjusted for currency. Asia-Pacific sales were 153.3 million euros, or $200.5 million, a 14.8 percent increase reduced to a 1.2 percent decline when accounting for currency fluctuation.
In euros, footwear sales increased 0.7 percent to 397.1 million euros, or $519.4 million, and apparel revenues dropped 4 percent to 222.4 million euros, or $290.9 million. The firm’s smaller accessories segment ballooned 64.7 percent during the quarter to 77.9 million euros, or $101.9 million. Excluding currency effects, footwear sales were down 0.8 percent, apparel was down 8.1 percent and accessories rose 56.7 percent.
Gross margin slipped slightly in the quarter, to 52.1 percent of sales from 53.4 percent in the first quarter of 2008.
Jochen Zeitz, chief executive officer, said the company planned “to implement further measures to align our cost structure with the current market environment, ensuring a platform for profitable growth in the future. The measures are expected to accelerate our operational processes, make the organization even more efficient and to further reduce time-to-market for our products.”
“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