Supplemental Report and Outlook

Supplemental Report

There were no events after the balance sheet date which may have a material effect on the net assets, financial position and results of operations of the ­PUMA Group.

Mr. Lars Radoor Sørensen has resigned as a member of the Management Board of PUMA SE with effect from January 31, 2019. With effect from February 1, 2019, the Supervisory Board of PUMA SE appointed Ms. Anne-Laure Descours to the Management Board as Chief Sourcing Officer.


Global Economy

After the global economy slowed down in 2018, the experts of the Kiel Institute for World Economy (IFW Kiel), in their winter forecast of December 11, 2018, expect the global gross domestic product (GDP) to rise by 3.4% in 2019. This corresponds to a slight decline of 0.3% on the GDP forecast for 2018. The pace of expansion is expected to slow slightly in 2019, both in the advanced economies and in the emerging markets. Risks for the growth outlook lie in particular in an intensification of trade conflicts, a disorderly Brexit and a further tightening of monetary policy in the United States of America. Experts’ forecasts, however, predict that a solution for the trade disputes will be found and there will ­therefore be no significant slowdown in economic development over the course of the year 2019.

Sporting goods industry

If there are no significant negative effects on the part of macroeconomic development, we continue to expect stable growth in the sporting goods industry in 2019. It can be assumed that the trend for sporting activities and a healthy lifestyle will continue and the demand for sporting goods will therefore also continue to rise.

Outlook 2019

Our business developed strongly in 2018, both in terms of sales and profitability. We are confident that the positive development will continue in 2019.

For the full year 2019, we therefore expect currency-adjusted sales growth of around 10%. We forecast the gross profit margin to show a slight improvement compared to last year (2018: 48.4%) and operating expenses (OPEX) to increase at a slightly lower rate than sales. Based on the current exchange rate levels, management expects an operating result (EBIT) for the financial year 2019 in a range between € 395 million and € 415 million (2018: € 337.4 million). Management also expects a significant improvement of net earnings in 2019.

The new accounting standard relating to lease accounting (IFRS 16), which is effective since January 1, 2019, leads to a capitalization of the operating leases on the balance sheet (approximately € 618 million on January 1st, 2019). The outlook for the operating result (EBIT) in a range of € 395 million to € 415 million (see above) includes a positive effect of approximately € 16 million caused by the new accounting standard. This effect on the operating result is composed of a decrease in rental expenses of approximately € 153 million and an increase in depreciation for leases of approximately € 137 million. Taking into account ­further interest and deferred tax effects of IFRS 16, the estimated impact on net earnings in 2019 is a negative amount of approximately € 7 million.
Please refer to the Notes to the Consolidated Financial Statements, Chapter 1 General, for a detailed description of the new accounting standards and the ­effects of the first-time application of IFRS 16 Leases.


Investments in fixed assets of around € 200 million are planned for 2019. The majority of these investments will be in infrastructure in order to create the ­operating requirements for the planned long-term growth. The increase ­compared with the investments in 2018 mainly relates to planned investments in our own distribution and logistics centers. Further investments will also be made in the expansion and modernization of the Group’s own retail stores.

Foundation for Long-Term Growth

The Management Board and the Supervisory Board have set the long-term ­strategic priorities. Action plans are being implemented in a targeted and ­value-oriented manner. The management believes that the corporate strategy FOREVER FASTER provides the basis for medium- and long-term positive ­development. We therefore confirm our medium-term target of an average ­annual growth rate of currency-adjusted sales of around 10% (CAGR) and the achievement of a 10% EBIT margin by 2021 / 2022.

Herzogenaurach, January 30, 2019

For the Management Board
Bjørn Gulden Michael Lämmermann Lars Radoor Sørensen