INDUSTRY NEWS

HERZOGENAURACH, GERMANY—PUMA AG announced its third quarter financial results, and it wasn't easy to find silver linings in what was a predominantly dismal report. Consolidated sales were posted at 673 million euros, a decline of 5.5 percent over last year’s third quarter. Sales in the U.S. market decreased by 11.3 percent, to $129.5 million, in the third quarter. However, the company did show a gross profit margin increase of 1.9 percent over its previous quarter, to 51.9 percent from 50 percent.


According to CEO Jochen Zeitz, “The business environment has continued to be as challenging as we had expected, which resulted in a decrease in sales and profits. Despite the most difficult market, we generated a profit in all three quarters so far and we expect to be profitable in Q4 again.”

Puma’s ongoing cost savings program enabled the company to reduce operating expenses 2.5 percent over the previous year, and saw continued reduction in inventories. The company also expects its reengineering and restructuring program to continue through the end of 2009.

Looking ahead, the company expects next year’s World Cup, held for the first time in Africa, to provide a significant boost. The company supplies product to 11 African national teams. According to Zeitz, “We hope to see first signs of an improving business environment in the run up to the Football World Cup in South Africa, where Puma, through its strong ties with African Football, has a home field advantage.”

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