Second-quarter earnings at the new PPR unit Puma AG dropped 10 percent on nearly flat sales, due to increases in SG&A and depreciation and amortization.
PPR, which also owns Gucci Group, finalized its acquisition of 62.1 percent of Puma last month.
For the three months ended June 30, Puma's net income fell to 45.2 million euros, or $60.9 million at current exchange, from 50.1 million euros, or $62.9 million, in the second quarter last year. Earnings per share fell to 2.82 euros, or $3.80, from 3.12 euros, or $3.92.
Sales for the quarter slid less than a percent to 542.8 million euros, or $731.8 million, from 546.6 million euros, or $686.8 million, last year, a period that included sales associated with the 2006 FIFA World Cup.
Losses in the Americas region, particularly the U.S. market, offset gains in other parts of the world. Quarterly sales in the Americas fell 15 percent to 145.3 million euros, or $195.9 million, from 171.7 million euros, or $215.7 million, in the second quarter of 2006.
While apparel revenues grew, footwear and accessories sales for the active lifestyle company declined. Apparel sales climbed 2 percent to 185.6 million euros, or $250.2 million, from 181.6 million euros, or $228.2 million, in the same period last year.
Meanwhile, the larger category of footwear fell 2 percent to 320.9 million euros, or $432.6 million, from 327.9 million euros, or $412 million. The smaller accessories business fell 2 percent, as well, to 36.3 million euros, or $48.9 million, from 37.1 million euros, or $46.6 million.
For the first half of the year, earnings slipped 1 percent to 141.7 million euros, or $188.4 million, from 143.2 million euros, or $176.1 million, in the first half of 2006. Earnings per share dipped to 8.84 euros, or $11.75, from 8.95 euros, or $11.01.
Sales for the front half of 2007 increased almost a percent to 1.2 billion euros, or $1.59 billion, from 1.19 billion euros, or $1.46 billion, in 2006.
“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