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Puma’s Q1 Revenue Impacted by Currency

Puma reported first quarter 2015 financial results with growth across all regions, despite a lowered gross profit margin due to foreign currency impacts.

Sales were up by 4.4% currency-adjusted to € 821 million, with growth mainly driven by footwear. The sales in the EMEA region rose by 0.2% currency-adjusted to € 342 million. In the Americas, sales grew 5.6% currency-adjusted to €289 million, with both North America and Latin America developing positively. Asia/Pacific sales increased 10.9% currency-adjusted to €191 million with strong performance in China and India supported by the improved footwear business.

Footwear sales increased by 7.8% currency-adjusted to €378 million. This was driven by a higher demand for running, training, and fitness products, and the successful launch of the Puma Ignite in mid-February.

Despite increased sales, the gross profit margin fell from 48.5% to 46.9% in the first quarter due to foreign currency impact. The footwear gross profit margin declined from 44.1% to 42.9%.

There was also an increase in OPEX due to marketing expenses, investments in IT, opening of new retail stores, and the strong impact of unfavorable currency rates.

After the positive sales development in the first quarter, Puma expects an increase in the medium single-digit range for full-year, currency-adjusted net sales.

As a result of the drop in gross profit margin and adverse currency effects on OPEX, Puma expects EBIT for the full year 2015 to be in between €80 million and €100 million.