German sportswear retailer Puma has reported rise in sales in the fourth quarter of the current fiscal.
According to a press release, for the quarter ended on December 31, 2015, sales at the company zoomed 17.1 per cent year-over-year to reach € 879 million. Additionally, currency adjusted sales surged 11.5 per cent. However, due to adverse currency effects gross profit margin plunged to 42.7 per cent, while EBIT improved to € 11 million, due to continued heavy investments in OPEX. The company also noted strong sell-through of the first Rihanna-inspired footwear ignited Puma’s women’s business.
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For complete year 2015, sales at Puma rose slower at 14 per cent year-on-year and amounted to € 3.4 billion, while currency adjusted sales zoomed 6.5 per cent. Sales growth was mainly driven by footwear, running and training categories. However, gross profit margin dropped to 45.5 per cent for full year 2015, which it also attributed to adverse currency effects. Net earnings for 2015 plunged steeply to € 37.1 million as against € 64.1 million in 2014 and EPS too came in at € 2.48 last year as against € 4.29 in 2014.
The company said that its inventory level was up 15 per cent year-on-year in 2015 to € 657.0 million, which it said was not only necessary in order to accommodate planned sales growth in 2016, but also driven by higher unit cost.
Headquartered at Herzogenaurach, Germany, Puma is a major multinational company that produces athletic and casual footwear, as well as sportswear.
