Puma Expects 2016 Sales To Maintain High Single Digit Growth.

Germany

Starting to return to track, thanks to the impact of the 2016 European Football Championship and Rihanna and Kylie Jenner.

Cooperation series strong sales, Puma first quarter year-on-year profit loss.

Puma expects Puma sales to maintain a high single digit growth in 2016, with annual profits between 115 million euros and 125 million euros.

Over the past year, the stock price of Puma (ETR: PUM) has risen by 35%, and its market value is currently about 3 billion 340 million euros.

As of the second quarter of June 30th, driven by the growth of garment performance, Puma's total sales increased by 7% to 826 million 500 thousand euros, and the growth rate was about 13% under the influence of exchange rate changes. The net profit reached 1 million 600 thousand euros, which had a qualitative leap compared with the 3 million 300 thousand euro loss in the same period last year.

In addition, Puma's operating profit in the quarter has skyrocketed 75.1% and recorded 11 million 900 thousand euros.

Puma chief executive officer Bj RN Gulden said in an interview with the media that the second quarter growth of Puma is in line with the company's expectation of organic growth of the two digit brand, and consumers are gradually returning after adjusting and improving the brand product structure and marketing strategy.

By Region:

Puma's sales performance in the EMEA region (Europe, Middle East and Africa) was strong in the second quarter, and increased by 23.5% after the currency exchange rate adjustment.

Sales in the Americas, including the United States, increased by 5%

The Asia Pacific region has increased by 10.3% in the Chinese market.

For the positive growth of Puma in the second quarter, Bj RN Gulden believes that we should thank the celebrity influence. He stressed that the women's clothing products and marketing cooperation between the brand and Rihanna and Kylie Jenner have gained a good market feedback. Besides, the excellent performance of the company sponsored team in the French 2016 European Football Championship has greatly enhanced the popularity of Puma.

After Rihanna joined Puma as the brand creative director in 2014, the negative voice of the company continued to decline, and the popularity of the brand began to grow.

A senior fashion industry executive revealed that everything related to Rihanna can break the track record. Behind this is Rihanna's huge social media influence. At present, there are more than 35 million fans in instagram alone, and Rihanna has been identified as a brand development direction since he was Puma creative director.

By category:

Sales of clothing increased by 19.5%, and the sales of sports clothing affected by the European Champions Cup were the highest.

Footwear sales increased to 7.3%, and the main growth items included sports fashion, basic and team sports shoes.

Accessories sales rose 14.1%, mainly driven by high demand for knapsack and hat products.

Puma executive said: "now very much looking forward to the Olympic Games in Rio De Janeiro opening ceremony, Boulter and other great athletes wearing Puma innovative design products into the Olympic Games time."

Puma announced this week that it will resold the series of fur slippers to cooperate with Rihanna, and add a new grey matching color, which will be sold in August 5th with the previous bestsellers.

Earlier, Bjorn Gulden revealed that Rihanna's cooperation series was not only highly sought after by sporting goods retailers, but also high-end stores and some boutiques began to apply for stock. He pointed out that Rihanna would help Puma get back to the competition pattern of the sports brand and Adidas.