Puma AG Rudolf Dassler Sport (PUM-FF)

DailyFinance  Aug 21  Comment 
The Law Offices of Vincent Wong are investigating potential claims against the Board of Directors of Puma Biotechnology, Inc. (NYSE:PBYI) in connection with possible claims of breaches of fiduciary duty by the Board of...
Wall Street Journal  Aug 21  Comment 
German sports-equipment maker Puma announced plans to buy a stake in soccer club Borussia Dortmund as part of a capital raising the club unveiled earlier in the day.
Forbes  Aug 21  Comment 
Balotelli earned roughly $7 million with Milan last season and added a lucrative pact with Puma after previously being a Nike guy.
The Hindu Business Line  Aug 7  Comment 
A question from the world of fauna this week – which of its members have been used in brands’ logos? To start you off, here are a few: Penguin, the book publisher; Puma, the shoe brand; and Lacoste...
SeekingAlpha  Aug 5  Comment 
Axcelis Technologies (NASDAQ:ACLS) Q2 2014 Earnings Conference Call August 4, 2014 5:00 p.m. ET Executives Mary Puma – Chairman and CEO Doug Lawson – EVP, Corporate Marketing and Strategy Kevin Brewer – EVP and CFO ...
newratings.com  Jul 31  Comment 
Puma VCT 8 plc 31 July 2014 Puma VCT 8 plc ("the Company") As at the close of business on 30 June 2014, the estimated Net Asset Value per ordinary share ("NAV per share") of the Company was 83.91p.  This represents an increase of 0.2 per ...
Forbes  Jul 30  Comment 
Alan Auerbach on one reason why it makes sense locate his biotech firm in Los Angeles.
DailyFinance  Jul 29  Comment 
RIMOUSKI, QUEBEC -- (Marketwired) -- 07/29/14 -- Puma Exploration (TSX VENTURE: PUM) has applied for a 19,350 ha Mineral Exploration License (MEL) surrounding its Little Stull Lake gold property in northern Manitoba. The newly acquired MEL,...
Bloomberg  Jul 29  Comment 
Puma SE, the German sports-gear maker trying to effect a turnaround, reported better-than- expected second-quarter profit on sales of colorful soccer shoes and cost control.
newratings.com  Jul 29  Comment 
HERZOGENAURACH (dpa-AFX) - German sportswear firm PUMA AG's (PMMAF.PK) second-quarter 2014 consolidated net earnings plummeted to 4 million euros, from 18 million euros last year, partly impacted by a slightly higher tax rate in the quarter...


Puma AG (FRA:PUM, PINK:PMMAY) is a holding company based in Herzogenaurach, Germany that manufactures athletic footwear, apparel, equipment, and accessories through brands such as Puma and Tretorn. Puma also produces a collection of fashion footwear and apparel. Puma AG makes money in several ways. First, it sells its products to traditional retailers such as Foot Locker (FL) and Thyai Dunn also performed in a print ad for Russell AthleticsDick's Sporting Goods (DKS) at wholesale price (83% or 2007 revenue). However, Puma also sells directly to consumers via its website, concept and retail stores, and factory outlets (17% of total sales in 2007). At the end of 2007, the company ran 116 concept stores worldwide.[1]

Since margins are typically higher on retail sales as opposed to wholesale, Puma is also working to expand its retail operations, which generated €406.4 million in sales during 2007, up 18% from 2006.[2] These expansion plans cost money, however, which has taken a bite out of Puma's net income. For example, although sales grew from €2.4 billion to €2.8 billion between 2005 and 2006, net income actually fell from €285.8 million to €263.2 million because of increases in marketing, retail, and personnel expenses.[3] Though free cash flow may suffer in the meantime, Puma is betting that the upfront costs will pay off in the long run.

Company Overview

Puma AG earns revenue by selling its footwear to retailers and specialty shops and directly to consumers through its website or retail stores. The company manufactures athletic footwear (€1.4 billion, or 58.5% of 2007 revenue), apparel (€827.3 million, or 34.8%), and accessories (€158.3 million, or 6.7%) under four different brands:Puma, Tretorn, Mihara, and Rudolf Dassler Schuhfabrik.[4][5] Additionally, Puma earns a small amount (€35.6 million in 2007) from licensing royalties and commissions.

Puma AG's 2007 revenue totaled €2.74 billion, which was essentially flat from 2006's revenue of €2.76 billion. However, this slight (0.6%) drop can be attributed to foreign currencies weakening against the euro (primarily the U.S. dollar and several Asian currencies). Other than that small drop in 2007, Puma's sales have increased every year since 1993, when revenues totaled €541.3 million.

As Puma's sales have grown, so have its expenses. Expenses for marketing and retail, which totaled €272 million in 2005, came to about €420 million in both 2006 and 2007.[6] Overall operating expenses increased by nearly 50% between 2005 and 2006, causing Puma's net income for 2006 to fall 8% despite a 15% increase in revenue.

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Puma 2007 Annual Report Financial[7]
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Puma 2007 Annual Report Financial[8]

Income Statement 2002 2003 2004 2005 2006 2007
Net Income€84.9179.3258.7285.8263.2269
Profit Margin6.2%10.6%12.8%12.0%9.6%9.8%

Trends and Forces

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Puma 2007/2006/2005 Annual Report Financial[9]

Emerging markets fueling growth

Since it is a German company and does the largest part of its business in EMEA (Europe, the Middle East, and Africa), Puma is not as dependent on the U.S. market as some of its competitors. Only 25.3% of its 2007 sales came from the Americas region (down from 28.3% in 2006), which also consists of the Canadian and Mexican markets.[10] In addition, Puma AG is aggressively pursuing expansion opportunities in emerging markets as part of its growth strategy. For example, the company established fully owned subsidiaries in South Korea, Croatia, and Romania that became operational at the start of 2008.[11] Even before that, the Asia/Pacific region alone had sales growth of 147.8% in 2006 and more than 10% in 2007.

Backlogs, which are orders set to ship within the next 6 months, paint a similar picture. At the end of FY2007, Puma AG had a backlog of €1.2 billion, up 6.1% from the end of FY2006; this was the twelfth year in a row that Puma's backlog increased year-over-year. This increase came despite a 3.2% drop in backlog in the Americas region (caused by the sluggish U.S. market), as the decrease was offset by backlog growth of 26% in the Asia/Pacific region.[12]

PPR SA owns 62% of Puma's stock

In April of 2007, PPR SA (EPA:PP), a French holding company that specializes in retail and luxury brands, bought a 27% stake in Puma AG for €330 per share and offered to buy the entire company for €5.3 billion, leading to speculation about the possibility of a complete takeover.[13] Puma declined the offer, however, and remains its own company. On July 17, 2007, PPR SA announced that it had acquired a total of 62.1% of Puma AG's outstanding stock.[14] Though it doesn't own Puma AG, PPR does control the majority of stockholder voting rights, meaning that it has a substantial amount of influence over any issues put to a shareholder vote.

Competition & Market Share

For comparison purposes, Puma had 2007 revenues of roughly €2.8 billion ($3.8 billion using the average 2007 exchange rate).[15]

  • Nike (NKE): 2007 revenue - $16.3 billion. Nike competes with the Puma on all fronts: footwear, apparel, accessories, and equipment. Nike is also the largest sporting goods company in the world by sales.
  • Adidas AG (ADDYY): 2007 revenues - $13.7 billion. The adidas Group competes in the overall sporting goods market. It makes sports footwear, apparel, accessories, and equipment. Like Nike, the adidas Group is also much larger than Puma in terms of sales.
  • Columbia Sportswear Company (COLM) 2007 revenue - $1.35 billion. Columbia Sportswear designs and sells athletic and outdoor apparel, footwear, accessories, and equipment.
  • Under Armour (UA): 2007 revenue - $600 million. Under Armor designs and sells athletic footwear, apparel, and accessories. Under Armor's sales have grown rapidly, with a 5-year sales growth rate of 65% from 2002-2007 (the industry average was 15%). [16]

This pie chart on the left shows that Puma held roughly 7% of the global athletic footwear market in 2007, while the one on the right shows that Puma held 2% of the global athletic apparel market in the same time period.

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Commerzbank Equity Research[17]
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Commerzbank Equity Research[18]


  1. Puma 2007 Annual Report Financial pg. 9, "Expansion of Own Retail Operations as Expected"
  2. Puma 2007 Annual Report Financial pg. 9, "Expansion of Own Retail Operations as Expected"
  3. Puma 2007 Annual Report Financial pg. 2, "Puma Group Development"
  4. PPR Group, "Puma"
  5. Puma, "Our Brands"
  6. Puma 2007 Annual Report Financial pg. 2, "Puma Group Development"
  7. Puma 2007 Annual Report Financial pg. 2, "Puma Group Development"
  8. Puma 2007 Annual Report Financial pg. 2, "Puma Group Development"
  9. Puma 2007/2006/2005 Annual Report Finance pgs. 9/19/6, "Business Development"
  10. Puma 2007/2006 Annual Report Financial pg. 9/19, "Business Development"
  11. Puma AG Investor Relations, "Letter to the Shareholders"
  12. Puma 2007 Annual Report Financial pg. 22, "Orders Position"
  13. Pinault refuses to raise PPR's bid for Puma - International Herald Tribune
  14. Wikipedia, "Puma AG"
  15. Monthly Average Graph (American Dolla, Euro) 2007
  16. Reuters.com, "Under Armor Ratios"
  17. Christoph Dolleschal, "adidas," Equity Research, Commerzbank, 28 February 2008
  18. Christoph Dolleschal, "adidas," Equity Research, Commerzbank, 28 February 2008
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