Demand For Footwear Increased, And Puma's Two Quarter Earnings Exceeded Market Expectations.

As of the two quarter of June 30th, Puma SE SE Operating profit of 6 million 800 thousand euros, although a 12 million 600 thousand decline over the same period last year, 46%, but higher than the market forecast of 4 million 300 thousand euros, operating profit margin of 8.8%. Dragged down by a stronger US dollar and a heavy increase in spending on marketing, the two quarter turned to a deficit in the same quarter, a net loss of 3 million 300 thousand euros, or a loss of 0.22 euros per share, compared with a net profit of 4 million 200 thousand euros or 0.28 euros per share during the same period last year.

The group issued a quarterly earnings report in early May, which has warned that the strong dollar will seriously impact annual profits. Although the depreciation of the euro against the US dollar is beneficial to most European exporters, most of the purchases of footwear and clothing by Puma SE and Puma are mostly settled in US dollars, so the cost pressure has increased dramatically. Besides, the group has gained more profits than the competitors in the market which has depreciated sharply against the US dollar in Russia, Mexico, Turkey, Argentina and South Africa.

The two quarter income increased by 18.5% to 772 million 700 thousand euros compared with the same period last year, which is also better than market expectations. The growth rate was 7.6% after excluding the exchange rate effect, which was mainly driven by the American market. After excluding the effect of exchange rate, the income of the Americas increased by 11.6% to 328 million 400 thousand euros per year, and progress in North America and Latin America, especially in Argentina and Mexico. The Asia Pacific region rose 6.2% to 173 million 800 thousand euros, and China and India both recorded double-digit growth. Europe, the Middle East and Africa increased 3.9% to 270 million 500 thousand euros. Such

The group's heavily invested footwear business had a strong growth rate of 16.2% in the two quarter after the exchange rate was cut off, and its revenue increased to 358 million 800 thousand euros. Runners, fitness and fashion categories performed well. The clothing category was flat at Euro 263 million 300 thousand due to the high base of the FIFA World Cup in the same period last year, and accessories category increased by 3.6% to 150 million 700 thousand euros.

The group maintained its full year forecast for May, that is, the annual operating profit ranged from 80 million to 100 million euros, which was 37% lower than the 128 million euro in the 2014 fiscal year. Net profit will also decline, and gross margin will be reduced by 100-150 basis points compared with 46.6% last year, instead of a slight upward trend. Chinese style

The gross profit margin in the two quarter was 46.7%, unchanged from the same period last year. Puma SE Puma CEO Bj RN Gulden said in the earnings report that the negative impact of foreign exchange floating will not slow down the group. Market promotion The group will also move part of its purchases to local markets such as Germany, Argentina and Mexico and raise prices in some markets. Citigroup Inc. (NYSE:C) Citigroup analyst Thomas Chauvet estimates that Puma, SE, Puma, and its operating profit margin this fiscal year will fall to a record low of 2.6%, which has dropped 10 percentage points in the past 10 years. He expects to hold a 86% stake in Puma SE Puma. France luxury group Kering SA (KER.PA) Kai Yun group It is very likely to sell shares in the next 12-18 months.