Puma Eyes Steady Growth Over Next 2 Years

Puma Eyes Steady Growth Over Next
Franz Koch

Puma SE is expecting high-single-digit revenue increases in both 2012 and 2013 after hitting its 3 billion euro sales target in 2011.

The growth will be fueled by further investments into marketing, product design and development, structure in emerging markets as well as the optimization of processes, organization and systems, the firm said Wednesday.

In a statement, Puma CEO Franz Koch said, “Our sales and earnings performance in the financial year 2011 bear testament to the fact that Puma is ‘Back on the Attack’ [and] we are well on track to explore the opportunities of the 2012 sports year, as well as achieve our 2015 goal of 4 billion euros in sales.”

Susquehanna Financial analyst Christopher Svezia predicted sales should remain solid moving forward. “Growth is again expected to be broad-based with all regions and categories expected to be up. That said, emerging markets of Latin America, Russia and China will drive the majority of the growth,” he said.

For the fourth quarter ended Dec. 31, sales in the Americas surged 27.8 percent currency adjusted to 271 million euros, or $352.6 million at current exchange.

Amid the eurozone debt crisis, sales in the EMEA region rose by 8.3 percent currency adjusted to 237 million euros, or $309.7 million. And sales in the Asia-Pacific region advanced 11 percent currency adjusted to 212 million euros, or $277 million, thanks to demand for the brand’s soccer shoes and lightweight running products.

By sector, footwear sales advanced 11.4 percent, while apparel grew by 12.7 percent. The accessories category was the top performer, increasing 43.6 percent.

Puma’s fourth-quarter net earnings more than doubled to 33.1 million euros, or $43.3 million — from 14 million euros, or $18.3 million. Earnings per share came in at 2.21 euros, or $2.88.

For the full year, net income advanced 13.8 percent to 230.1 million or $300.4 million. Sales hit 3 billion euros, or $3.91 billion.

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