2016 Fourth-Quarter Facts
- Sales increase by 10% currency adjusted to € 958 million (+9% reported) with growth across all regions and product segments
- Gross profit margin up 180 basis points at 44.6%
- OPEX increase by 13% caused by higher marketing and retail investments as well as higher sales related variable costs
- Improvement in operating result (EBIT) by 30% to € 14 million
- FENTY PUMA by Rihanna Creeper awarded “Shoe of the Year 2016” by Footwear News in the US
2016 Full-Year Facts
- PUMA’s full-year sales up 10% currency adjusted to € 3,627 million (+7% reported)
- Gross profit margin improved by 20 basis points to 45.7%, despite stronger US Dollar
- Improved operating leverage with OPEX increasing by only 6%
- Operating result (EBIT) up 33% to € 128 million
- Earnings per share increased from € 2.48 last year to € 4.17 in 2016
- Strong improvement in Free Cashflow from € -99 million 2015 to € 50 million 2016
- An increase of the dividend from € 0.50 to € 0.75 per share for the financial year 2016 will be proposed
- Strong performances by PUMA athletes at the UEFA EURO 2016 and Olympic Games in Rio
- Continued strong visibility of PUMA’s women’s category through “FENTY PUMA by Rihanna” – fashion shows and launch of the “DO YOU” communication platform with model, actress and activist Cara Delevingne
Bjørn Gulden, Chief Executive Officer of PUMA SE:
“The fourth quarter developed as expected with solid growth in both sales and EBIT. We have seen a continued increase of interest in our products and brand both from consumers and retailers. The sell-through of our new product launches has been good. 2016 ended as we had hoped with revenue growth in all regions and product segments as well as a significant increase in EBIT and net earnings. The year has confirmed, that our strategy has been right and we will continue to invest in our mission of becoming the Fastest Sports Brand in the World. We feel confident that we will continue to see revenue growth and a significant increase in earnings again in 2017.”
Fourth Quarter 2016
Sales:
PUMA’s sales growth continued in the fourth quarter 2016, improving by 10.1% currency adjusted to € 958.2 million (+9.0% reported) with positive developments in all regions and product segments.
The EMEA region performed extraordinarily well, reporting a double-digit growth rate of 13.4% currency adjusted to € 298.4 million (+10.4% reported). This was achieved in spite of strong comparable sales last year (Q4 2015 +21% currency adjusted).
In the Americas region, sales increased by 9.9% currency adjusted to € 393.0 million with growth in North- and Latin America. In Euro terms sales grew by 6.7%, as the weakness of currencies in Latin America, notably in Argentina, continued to have a negative impact on reported sales.
The Asia/Pacific (APAC) region performed well with sales increasing by 6.8% currency adjusted to € 266.8 million (+11.1% reported). China was the main driver of this positive development.
Footwear continued to drive the strongest growth among the three product segments, showing an improvement of sales for the tenth quarter in a row. Sales were up 17.6% currency adjusted (+15.3% reported) and amounted to € 416.0 million, with success particularly coming from the Sportstyle and Fundamentals categories.
Apparel showed moderate growth in the quarter with sales increasing by 3.7% currency adjusted to € 366.6 million (+3.3% reported), as sales in Q4 last year were driven by the Euro Cup replica business.
Sales in Accessories improved by 7.5% currency adjusted to € 175.6 million (+7.5% reported), driven by a strong performance of our North American accessory business in the fourth quarter.
Outlook 2017
Based on the development in 2016, where we saw ongoing sales growth and an improvement of profitability, we are confident that PUMA can continue the momentum that it has gained as a brand. In 2017, we will further invest in marketing and continue our Forever Faster brand communication to increase our brand heat by leveraging our ambassadors and to position PUMA as the fastest sports brand in the world.
To see the full financial report, see about.puma.com.
