PUMA’s 2019 Management Report had predicted a currency-adjusted growth in net sales of around 10% for the financial year 2020. However, due to the significant negative impact and considerable uncertainty of the COVID-19 pandemic, this forecast had to be withdrawn when the results were published for the first quarter of 2020.
More details on sales development in the financial year 2020 are provided below.
PUMA’s net sales in the reporting currency Euro decreased by 4.9% to €5,234.4 million in the financial year 2020 as a result of the worldwide negative impact of the COVID-19 pandemic (previous year: €5,502.2 million). Sales recorded a currency-adjusted decrease of 1.4%. PUMA therefore managed to keep the sales decrease resulting from the COVID-19 pandemic in 2020 to a minimum.
In the Footwear division, sales fell in the reporting currency, the Euro, by 7.2% to €2,367.6 million. Currency-adjusted sales decreased by 3.1%. The decline in sales affected all categories, except Sportstyle and Basketball. The share of this division in total net sales fell from 46.4% in the previous year to 45.2% in 2020.
In the Apparel division, sales fell in the reporting currency, the Euro, by 4.6% to €1,974.1 million. Sales saw a currency-adjusted decrease of 1.5%. A decline in sales was recorded in all categories except Sportstyle, Motorsport and Basketball. The share of the Apparel division increased slightly to 37.7% of Group sales (previous year: 37.6%).
In the reporting currency, the Euro, the Accessories division recorded a slight sales increase of 1.3% to €892.7 million, despite the COVID-19 pandemic. This corresponds to a currency-adjusted sales growth of 3.5%. Higher sales, particularly of socks, bodywear and Cobra golf clubs, contributed to this increase in sales. The division’s share in Group sales increased accordingly from 16.0% in the previous year to 17.1% in 2020.
PUMA’s own retail activities include direct sales to our consumers (“Direct to Consumer business”). This includes selling to our customers in PUMA’s own retail stores, the so-called “Full Price Stores”, “Factory Outlets”, and the e-commerce business on our own online platforms. Our own retail businesses ensure regional availability of PUMA products and the presentation of the PUMA brand in an environment suitable to our brand positioning.
PUMA’s retail sales increased by 6.4% currency-adjusted to €1,424.5 million in the financial year 2020. This corresponds to a share of 27.2% in total sales (previous year: 25.4%). While sales at PUMA’s own retail stores declined in 2020 due to restrictions aimed at containing the COVID-19 pandemic and the resulting temporary closure of stores in many countries around the world, our e-commerce business recorded strong growth of over 60%, supported by an increased focus on performance marketing and successful promotions. In addition, our e-commerce activities on special days in the online business - such as Singles’ Day in China, the world’s biggest online shopping day, on November 11, as well as “Black Friday” on November 27 and “Cyber Monday” on November 30 - turned out to be particularly successful.
PUMA grants licenses to independent partners for various product divisions, such as watches, glasses, safety shoes and gaming accessories such as the Playseat. In addition to design, development and manufacture, these companies are also responsible for product distribution. Income from license agreements also includes some distribution licenses for different markets. PUMA’s royalty and commission income decreased by 36.0% to €16.1 million in the financial year 2020. Alongside the negative effects of the COVID-19 pandemic, this decrease was due, among other things, to the expiry of license agreements at the end of 2019.
