PUMA SE

EANS-News: PUMA SE
Implementation of Transformation Program and Cost Cutting Measures Impact Third Quarter Net Earnings

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Financial Figures/Balance Sheet


Herzogenaurach (euro adhoc) - Implementation of Transformation Program and Cost
Cutting Measures Impact Third
                              Quarter Net Earnings

                        Herzogenaurach, October 24, 2012

Performance Third Quarter 2012

    - Consolidated sales increase 6.0% in Euro terms
    - EBIT before special items decreases by 16.7% to EUR 98.8 million
    - Special items EUR 80  million  due  to  Transformation  and  cost 
reduction
      program
    - EPS down from EUR 5.45 to EUR 0.81



Performance First Nine Months of 2012

    - Consolidated sales grow 7.8% in Euro terms
    - EBIT before special items reduced by 13.0% to EUR 247.9 million
    - EBIT including special items EUR 168.6 million
    - EPS declines from EUR 13.15 to EUR 7.53
    - Equity ratio improves from 62.9% to 65.2%



Outlook for the Financial Year 2012


    - PUMA's Management maintains its 2012 sales guidance at a mid-single  digit
      rate in Euro terms.
    - Transformation Program complemented by immediate cost cutting measures  as
      the difficult business environment in particular in Europe required short-
      term adjustments.
    - Management expects annual net earnings to be significantly below those  of
      2011, impacted in particular by the one-time expenses.


"PUMA posted a moderate increase in sales  in  the  third  quarter  despite  the
challenging business climate in Europe," said Franz Koch, CEO of  PUMA  SE.  "We
have taken decisive actions to overcome the issues we are  currently  facing  in
particular in Europe. Our Transformation Program 2010-2015 in  combination  with
immediate  cost  cutting  measures  and  a  strengthened  product  pipeline   in
Performance and  Lifestyle  for  next  year  will  provide  a  solid  basis  for
sustainable and desirable growth."



   Challenging Business Climate in Europe continues to slow down sales growth

Sales Performance by Segment
PUMA's third quarter consolidated sales grew by 6.0% in Euro terms and  by  0.5%
currency adjusted to EUR 892.2 million.

Footwear sales rose by 2.5% to EUR 441.9 million, supported by  continuing 
demand
for the lightweight running footwear range PUMA Faas and  also  Heritage  styles
such as the evergreen Suede Classics and our Archive Lite Mid and  Low  designs.
PUMA's success in its running footwear  range  was  underlined  by  the  Olympic
Summer Games that saw PUMA's blend of Sportlifestyle at  its  best:  Outstanding
athletic performances, combined with cool events in town. However, the  positive
performance in our Running category was dampened by declines in  the  Fitness  &
Training and Motorsport categories in PUMA's mature markets.

Apparel sales increased  by  5.6%  to  EUR  311.2  million,  fueled  not  only 
by
continued strength in our Cobra  PUMA  Golf  division,  but  also  by  sales  of
replica jerseys as part of our  Teamsport  category.  PUMA  has  had  tremendous
success with Borussia Dortmund  replica  and  fan  wear,  which  has  played  an
important part in our sales performance in Germany this year.

Accessories continued to climb strongly,  up  20.1%  to  EUR  139.1  million 
with
strong results in our American sock and bodywear business and also in  Golf.  In
September, PUMA was part of a sensational finish at  the  2012  Ryder  Cup  when
Cobra PUMA Golf athlete Ian Poulter, the undisputed player  of  the  tournament,
won all four matches he played in the prestigious competition between  the  best
golfers from Europe and the USA.

Over the first nine months of this year, consolidated sales improved by 7.8%  in
Euro terms or by 3.3% currency adjusted to EUR 2.46 billion. Footwear  sales 
rose
2.2% in Euro terms, Apparel sales were up 9.8%  supported  by  strong  sales  in
Running and other performance items, and  Accessories  rose  23.4%,  with  Cobra
PUMA Golf products resonating well with consumers.
Sales Performance by Region
Growth continues in the Americas
In regional terms, sales in EMEA declined by 3.4% to  EUR  396.7  million  as 
the
economic slow-down in Europe and restrained consumer spending continued to  have
a severe impact on PUMA's business performance. Strong numbers from Germany  and
Russia could  not  completely  offset  the  slowdown  elsewhere.  However,  PUMA
continued its excellent performance in the Americas with sales growing by  20.5%
in Euro terms (10.6%  currency  adjusted)  to  EUR  283.2  million  in  the 
third
quarter, with Argentina, Brazil and Mexico all  providing  strong  double  digit
increases and continued growth in North America. Asia/Pacific posted a  gain  of
8.3% in Euro terms to EUR 212.3 million with good numbers from Korea and India 
in
particular. Growth in China has slowed down due to a challenging overall  market
environment and high inventory levels in the market.

First-nine-month sales in EMEA were down 2.5%  with  most  markets  in  Western
Europe continuing to  face  challenges,  although  Germany  returned  satisfying
figures, as did Turkey. Conversely, sales  in  the  Americas  rose  strongly  by
18.3% with good results across both  North  and  Latin  America.  North  America
benefitted in particular  from  continued  growth  in  our  socks  and  bodywear
subsidiary as  well  as  Cobra  PUMA  Golf.  Asia/Pacific  increased  by  14.9%,
supported again by excellent numbers from India and also Japan.

Sales Performance Retail
Retail continues to grow
PUMA's owned and operated retail  operations  generated  higher  sales  numbers.
Third-quarter retail sales were EUR 165.0 million, an increase of  22.7% 
compared
to EUR 134.0 million for the third quarter of 2011 and equal  to  18.5%  of 
total
sales. For the first nine months to the end of September, retail sales  were  up
20.4% from EUR 363.0 million to EUR 437.0 million, delivering 17.7% of  total 
sales
compared to 15.8% at  the  same  stage  last  year.  Comparable  sales  rose  at
existing stores and PUMA continues to open new selective  stores  in  profitable
locations. However, a considerable amount of retail  stores  in  mature  markets
are not generating satisfying contributions and  will  be  part  of  the  retail
store network optimization.  PUMA's  e-commerce  business  is  growing  and  has
contributed positively.

Margins, Expenses and Profitability
Gross Profit Margin fell in Q3 and for the first nine months of 2012
The gross profit margin declined to 48.2% in the third quarter  of  2012,  under
pressure  from  input  costs  and  unfavorable  trading  conditions  in  Europe.
Footwear fell from 49.8% to  46.1%,  mainly  impacted  by  inventory  clearances
which have led to a stock reduction  in  the  footwear  category  in  the  third
quarter, ahead of the launch of our new ranges for Spring/Summer  2013.  Apparel
fell marginally from 50.3% to 50.1%. Accessories, however, rose  from  50.0%  to
50.6% compared to 2011.

On a nine-month basis, the gross profit margin declined 110  basis  points  from
50.6% to 49.5%. Footwear fell from 49.8% to 47.9%. Apparel  remained  steady  at
50.9% while Accessories moved lower from 52.4% to  51.2%  due  to  higher  input
costs and the competitive Teamsport business.

Operating Expenses increase
Third-quarter operating expenses rose by 9.5% to EUR 336.1 million  in  the 
third
quarter of the year compared to EUR 307.0 million last  year.  Retail  costs 
have
continued to rise as PUMA has increased the number of retail stores it owns  and
operates, whilst the Olympics and associated  costs  meant  that  marketing  was
significantly higher than over the same period in 2011. As  well  as  continuing
to  invest  steadily  in  RD&D  in  order  to  further  strengthen  our  product
portfolio, we are continuing to enhance our supply chain and IT-systems.

For the first nine months of 2012, OPEX rose by 11.3% or EUR 100.5 million from 
EUR
885.5 million to EUR 986.0 million, impacted  as  above  by  increased 
marketing,
retail  and  RD&D  expenditures  as  well  as  investments  in  line  with   the
accelerated Transformation Program. The OPEX has also been impacted by  currency
effects which alone led to an increase of 450 basis points.

Operating result before Special Items
As a result of the lower gross  profit  margin  and  increased  operating  costs
related to the Transformation  Program,  the  operating  result  before  special
items declined by 16.7% to EUR 98.8 million during the third quarter of  2012. 
On
a nine months basis EBIT before special items fell by 13.0% to EUR 247.9 
million,
an EBIT margin of 10.1%

Special Items
PUMA recorded a total of EUR 80 million in special items that are related  to 
the
Transformation  Program  during  the  third  quarter.  These  have  been  mainly
incurred by restructuring the European region, optimizing the  retail  portfolio
and reorganizing its global operations and functions.

EBIT after special items
EBIT including special items were equal to EUR 19.6 million for the third 
quarter
and EUR 168.6 million for the nine months to the end of September.

Financial Result
The financial result was positive at EUR 1.7 million compared to  EUR  -2.1 
million
in the third quarter of 2011, due  mainly  to  positive  currency  developments.
Similarly, for the year to date, the  financial  result  improved  from  EUR 
-3.9
million to EUR -0.9 million.

Earnings before Taxes
PUMA's third-quarter EBT was down 81.7% to EUR 21.3  million.  The  quarterly 
tax
ratio decreased from 30.0% to 27.7%.

EBT also fell for the first nine months of the year from EUR 281.1  million  to 
EUR
167.7 million after special items, a drop of  40.3%.  The  company  reported  an
improved tax rate of 28.9% compared to last year's 30.0%.

Net Earnings decline
As a consequence of continued pressure on the  gross  profit  margin,  increased
expenditures and the special items  in  particular,  consolidated  net  earnings
fell by 85.1% to EUR 12.2 million. Earnings per share therefore fell to EUR
0.81.

For the first nine months of 2012, net earnings weakened by  42.8%  to  EUR 
112.8
million and EPS decreased to EUR 7.53.





                        Net Assets and Financial Position


Equity
Total assets as of September 30, 2012 grew by 6.5% from EUR  2,423  million  to 
EUR
2,580 million, mainly due to  an  increase  in  inventories.  The  equity  ratio
improved from 62.9% to 65.2% when compared to the  third  quarter  of  2011.  In
absolute figures, shareholders' equity increased by 10.3% from EUR  1,524 
million
to EUR 1,682 million.

Working Capital related Assets and Liabilities
Looking at assets, inventories rose by 21.3% in Euro terms to  EUR  646.0 
million
or 16.8% currency  adjusted.  This  increase  is  significantly  lower  than  in
previous quarters and testament that our efforts to  reduce  the  current  over-
stock levels have been successful in the  quarter.  Inventories  have  generally
advanced in the wake of continued retail expansion as  well  as  higher  average
prices per unit on stock. Trade  receivables  rose  only  slightly  to  EUR 
623.7
million, which is due to a sharper  focus  and  reflects  PUMA's  dedication  to
improve outstanding days. On the liabilities side, trade payables fell  slightly
to EUR 382.9 million.

Cashflow/ CAPEX
The Free Cashflow (before acquisitions) came in at EUR -82.7 million  compared 
to
EUR -89.4 million for the same period in  2011,  with  working  capital 
increases
offset by lower tax payments.  The  payments  for  acquisitions  relate  to  the
purchase of the outstanding Dobotex shares, effected on January 1, 2012.

CAPEX increased by 21.4% to EUR 54.2 million and continued for the  most  part 
to
be related to investments aligned with the "Back on  the  Attack"  growth  plan,
such as supply chain  initiatives,  IT  projects  and  profitable  retail  store
extension.

Cash Position
The total cash position as of September 30, 2012 was  reduced  by  9.4%  from 
EUR
289.5 million to EUR 262.2 million, affected by  the  purchase  of  the 
remaining
Dobotex shares. Including bank debts, the  net  cash  position  decreased  19.5%
from EUR 255.1 million to EUR 205.4 million.


    Implementation Status of PUMA's Transformation Program and Cost Reduction
                                    Measures

PUMA has progressed with and has already begun to implement major parts  of  its
Transformation Program which was introduced in 2010 as a new  development  phase
with the aim to reduce complexity and increase operational efficiencies  in  the
long run. In addition, immediate  cost  reduction  measures  were  initiated  to
improve the overall current financial performance.

New Regional Business Model: At the core of the program is the setup  of  a  new
regional business model which will initially be rolled out in  Europe  and  then
gradually be extended to the  remaining  regions.  The  European  organizational
structure has now also been expanded to  include  several  central  and  eastern
European Union member states (Czech Republic, Poland, Hungary, Slovakia and  the
Baltic nations). Furthermore, PUMA has  reduced  the  number  of  organizational
entities from 23 countries to seven areas in order to reduce complexity  of  the
business. Each area has a full management team  and  P&L  responsibility,  while
each country will focus its activities on the commercial side of  the  business.
The seven areas  are:  DACH  (Germany,  Austria,  Switzerland),  IBERIA  (Spain,
Portugal),  UKIB  (Belgium,  Ireland,  Luxemburg,  Netherlands,   UK),   NORDICS
(Denmark, Finland, Norway, Sweden)  EASTERN  EUROPE  (Czech  Republic,  Estonia,
Hungary, Lithuania, Latvia, Poland, Slovakia), FRANCE and ITALY.

Consolidation of Warehouse Portfolio: Correspondingly, PUMA  has  initiated  the
consolidation process of its warehouse  portfolio  across  Europe  in  order  to
generate further efficiencies and cost savings with the long-term  objective  to
align the warehouse network with the new area structure.

Optimization of  Retail  Portfolio:  PUMA  has  decided  to  close  a  total  of
approximately 80 unprofitable stores with the focus  on  mature  markets,  while
the company will continue to open new selected stores  in  profitable  locations
primarily in emerging markets. By  the  end  of  December  2013,  PUMA  aims  to
operate around 540 stores worldwide, compared to its current 590 stores.

Termination of Collaboration and Endorsement  Contracts:  PUMA  has  decided  to
divest unprofitable collaborations and endorsement contracts in  line  with  the
overall consolidation of its product portfolio.

Reducing Product Collections: PUMA is planning to downsize its  overall  product
palette by 30% by the end of 2015. The  number  of  articles  has  already  been
aligned with the company's core categories. The major  portion  of  the  article
reduction will come from streamlining  regional  and  local  ranges.  The  first
significant results of this rationalization and simplification will  be  visible
in Spring/Summer 2013.

Establishment  of  Business  Units:   PUMA   will   evolve   its   international
organization establishing seven Business  Units  (Teamsport;  Running,  Training
and  Fitness;  Golf;  Fundamentals;  Motorsport;  Lifestyle;   Accessories   and
Licensing).  Product  management,  design,  development   and   product-specific
marketing will be clustered under each Business Unit. Establishing the  Business
Unit structure will help PUMA  to  press  ahead  with  its  sharpened  focus  on
Performance as well as Lifestyle categories.

Further actions are currently under investigation, to be  put  in  place  during
the fourth quarter of the year.



                       Outlook for the Financial Year 2012



Against the backdrop of  a  difficult  business  environment  in  particular  in
Europe, PUMA's management has complemented its 2010-2015 Transformation  Program
with immediate cost reduction  measures.  The  above  actions  require  one-time
costs of EUR 80 million which were booked in the third quarter. PUMA expects 
that
these one-time expenses will be amortized within two to three years.

PUMA's management continues  to  forecast  annual  sales  rising  by  mid-single
digits in Euro terms and net earnings significantly decreasing from last  year's
level due to the aforementioned one-off expenses.

Media Relation:
Kerstin Neuber - Corporate Communications - PUMA SE - +49 9132 81 2984 -
kerstin.neuber@puma.com


Investor Relations:
Carl Baker - Finance - PUMA SE - +49 9132 81 3188 - carl.baker@puma.com




Notes to the editors:
    - This press release and financial reports are posted on www.about.puma.com.
    - PUMA SE stock symbol:
      Reuters: PUMG.DE, Bloomberg: PUM GY,
      Börse Frankfurt: ISIN: DE0006969603- WKN: 6969603






Notes relating to forward-looking statements:
This  document  contains  forward-looking  information   about   the   Company's
financial status and strategic initiatives. Such information  is  subject  to  a
certain level of risk and uncertainty that  could  cause  the  Company's  actual
results  to  differ  significantly  from  the  information  discussed  in   this
document. The forward-looking information is based on the  current  expectations
and prognosis of the  management  team.  Therefore,  this  document  is  further
subject to the risk that such expectations or prognosis, or the premise of  such
underlying expectations  or  prognosis,  become  erroneous.  Circumstances  that

could alter the Company's actual results and  procure  such  results  to  differ
significantly from those contained in forward-looking statements made by  or  on
behalf of the Company include, but are not limited to those discussed be above.



|PUMA                                                                          |


PUMA is one of the world's leading Sportlifestyle  companies  that  designs  and
develops footwear, apparel and accessories. It is committed to working  in  ways
that contribute to the world by supporting Creativity, SAFE  Sustainability  and
Peace, and by staying true to the principles of  being  Fair,  Honest,  Positive
and Creative in decisions made and actions taken. PUMA starts in Sport and  ends
in Fashion. Its Sport Performance and Lifestyle labels include  categories  such
as Football, Running, Motorsports, Golf  and  Sailing.  Sport  Fashion  features
collaborations with renowned designer  labels  such  as  Alexander  McQueen  and
Mihara Yasuhiro. The PUMA Group owns the brands PUMA, Cobra  Golf  and  Tretorn.
The company, which was founded in 1948, distributes its products  in  more  than
120 countries, employs about 11,000 people worldwide  and  has  headquarters  in
Herzogenaurach/Germany, Boston, London and  Hong  Kong.  For  more  information,
please visit http://www.puma.com


Further inquiry note:
Kerstin Neuber

Telefon: +49 (0)9132 81-2984

E-Mail: Kerstin.Neuber@puma.com

end of announcement                               euro adhoc 
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company:     PUMA SE
             PUMA Way  1
             D-91074 Herzogenaurach
phone:       +49 (0)9132 81 0
FAX:         +49 (0)9132 81-2246
mail:     investor-relations@puma.com
WWW:      http://about.puma.com/?lang=de
sector:      Consumer Goods
ISIN:        DE0006969603
indexes:     Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX, Prime All
             Share
stockmarkets: free trade: Hannover, Berlin, Hamburg, Düsseldorf, Stuttgart,
             regulated dealing: München, regulated dealing/prime standard:
             Frankfurt 
language:   English
 



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