EANS-News: PUMA AG announces its Consolidated Financial Results for the Third Quarter and First Nine Months of 2010

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quarterly report

Herzogenaurach (euro adhoc) - Herzogenaurach, Germany, October 26,
2010 - PUMA AG announces its Consolidated Financial Results for
the Third Quarter and First Nine Months of 2010

Highlights Third Quarter:

• Consolidated sales at EUR 784 million, up 16.5% in Euro terms •
Gross profit margin remains at 50% • Operating result before
special items improves by 15.3% to EUR 113 million • EPS rise from
EUR 4.50 to EUR 5.16 • Usain Bolt remains long-term brand asset for
PUMA • PUMA AG to take over full control in China and Hong Kong •
Irregularities discovered in Greece

Highlights January-September:

• Consolidated sales increased 5.7% in Euro terms • Gross profit
margin slightly down versus last year at 50.8% • Operating result
before special items improved by 7.7% to EUR 296.1 million • EBT
before tax improved by 83.2% to EUR 292.0 million • EPS increased
to EUR 13.65 from EUR 7.42 last year • Continued improvement in
equity ratio

Outlook 2010:

• Based on a strong sales performance in the third quarter as well as an
improvement in the overall outlook for the fourth quarter, Management now
expects sales to be up in the mid to high single-digit for the full year
2010.
• Management expects an increase in EBIT before special items versus last
year.
• Extraordinary one-time charge from PUMA Hellas S.A. affects results for
2010 as well as previous year.

Jochen Zeitz, CEO: "Unfortunately, the discovery of irregularities
committed by our Greek Joint Venture Partner is casting a shadow
on our solid financial performance in the quarter. However, we
are pleased to see that PUMA´s operational performance improved
significantly in the third quarter as we post a strong rise in
sales and operating results. We expect the sales outlook to
further improve for the fourth quarter and as a result we raise our
forecast of growth to mid to high single digits for the full year
2010. Looking further ahead, we are positive about our capabilities
and game plan to execute and deliver on our new "Back on The
Attack" Plan 2015 with a potential of reaching four billion Euros.
We have prepared our organization and are aligning our
processes accordingly to execute our new plan. We are confident and
optimistic about the large opportunities to further tap into our
brand´s potential growth drivers that we will reveal today during
our investor day presentations at the PUMAVision Headquarters in
Herzogenaurach."

Sales and Earnings Development

Global Brand Sales Sales under the PUMA brand, which include
consolidated and license sales, improved by 15.1% to EUR 828.6
million in the third quarter. In total, the quarter marked a
very solid performance against the background of a still
challenging global economic environment.

After nine months, global brand sales increased 4.8% and were close
to EUR 2.2 billion despite a flat first half of the year.

Consolidated Sales Currency-adjusted consolidated sales were up 6.5%
to EUR 784.3 million in the quarter, which represents an increase
of 16.5% in Euro terms. Footwear rose 6.0% currency-neutral to
EUR 417.2 million, and Apparel sales improved by 1.3% to EUR 263.8
million. Accessories sales reported a significant improvement of
25.0% to EUR 103.3 million, which derives from organic growth as
well as first time consolidations. In terms of regions, the
Americas grew strongest with 26.7% currency-neutral while APAC
advanced 1.4% currency-adjusted. EMEA softened slightly 1.1%.

After nine months, consolidated sales were up 5.7% in Euro terms and
flat (- 0.1%) currency-neutral at EUR 2,082.8 million. Despite a
challenging market environment, sales in the Americas region jumped a
strong 24.9 % with North- and Latin America reporting double-digit
sales growth. Sales performance in the EMEA region was impacted by
unfavorable market conditions in Southern and Eastern European
countries and, therefore, posted a currency-adjusted decrease of
5.6%. Sales in Asia/Pacific were up 1.5% in reported terms but
decreased 7.9% due to the strong fluctuations in currencies. In
terms of segments, Footwear stood at EUR 1,117.2 million,
representing a currency-neutral decline of 2.7% and Apparel sales
softened slightly by 0.8% to EUR 699.2 million. Accessories
sales, however, grew by 14.6% to EUR 266.4 million.

Gross Profit Margin In the third quarter, PUMA´s gross profit margin
decreased by 180 basis points to 50%. The decline was caused by
price sensitivities in the EMEA region as well as changes in the
regional as well as product mix.

After nine months, the gross profit margin stood at 50.8% after
51.4% last year. PUMA´s margin in Footwear remained flat at 50.2%
while Apparel was at 51.6% after 52.2%. Accessories posted 51.1%
compared to last year´s 54.8%. This decrease stems from the impact
of the newly acquired and integrated Cobra Golf business carrying a
low margin as the former owner, Acushnet, provided sales services
outside the US until end of August.

Operating Expenses

The OPEX increased by 10.4% to EUR 283.6 million in the quarter.
This rise is caused by the extension of the scope of business after
Cobra Golf was included as well as currency impacts. On a
comparable basis, operating expenses were flat, which is
reflected in an improved OPEX ratio of 36.2%. In the first nine
months, operating expenses rose by 3.1% to EUR 776.4 million, which
translates into an improved cost ratio of 37.3% versus last year´s
38.2%. The cost savings are a direct result of PUMA´s restructuring
and reengineering program, which will be finalized during the fourth
quarter 2010.

EBIT

In the third quarter, PUMA´s operating result before special
items improved significantly by 15.3% to EUR 113.0 million versus
EUR 98.0 million last year. As a percentage of sales, this
translates into an operating margin of 14.4% compared to 14.5% last
year.

As of September 30th, 2010, the operating result before special items
rose 7.7% from EUR 275.1 million to EUR 296.1 million. The operating
margin stood at a solid 14.2% compared to 14.0% last year.

Financial Result/Income from Associated Companies

The financial result shows a negative EUR 1.9 million for the third
quarter and was flat versus last year.

For the first nine months, the financial result improved from EUR
-5.6 million to EUR -4.6 million, while EUR 0.5 million of income
was generated by associated companies.

Net Earnings In the third quarter, PUMA´s pre-tax profit (EBT)
improved by 15.7% to EUR 111.1 million after EUR 96.0 million. This
led to an improvement in net earnings, which increased EUR 9.7
million or a strong 14.2% to EUR 77.6 million. Earnings per share
went up to EUR 5.16 in the quarter compared to EUR 4.50 last year.

In the first nine months, earnings before tax stood at EUR 292.0
million versus EUR 159.4 million, an increase of 83.2%, while net
earnings improved by 83.5% to EUR 205.5 million from EUR 112.0
million. Consequently, earnings per share jumped from EUR 7.42 to
EUR 13.65. The operational tax ratio came in at 29.6% after being at
27.9% last year.

Net Assets and Financial Position

Equity

As of September 30th, 2010, the balance sheet total climbed by
18.4% to EUR 2,436.5 million. This increase was mainly caused by the
inclusion of Cobra Golf as well as currency effects. The equity
ratio improved from 59.1% in the previous year to 60.1% this
year.

Working Capital

In reporting terms, inventories grew by 27.1% to EUR 452.9 million
while - on a comparable basis - inventories rose by 6.3% to
support the expected sales increase in the upcoming quarter. Due
to the increase in sales in the quarter, accounts receivables were
up by 14.2% (4.7% on a comparable basis), reaching EUR 606 million.
Working capital totaled EUR 594.2 million (ex acquisition EUR
518 million) compared to EUR 523.3 million last year.

Capex/Cashflow

The company invested EUR 35.5 million in the first nine months
into property, plant and equipment versus EUR 40.8 million last year.
An outflow of EUR 102.4 million (last year: EUR 75.8 million) is
related to acquisitions.

The free cashflow before acquisitions reached EUR 46.4 million
compared to EUR 145.1 million last year.

Cash position

Total net cash position at the end of September increased to EUR
360.7 million from EUR 339.5 million last year, underlining PUMA´s
strong financial position.

Share Repurchase

PUMA AG continued its share buyback program in the third quarter and,
as of the reporting date, the company purchased 102,219 of its own
shares. This equals 0.7% of the share capital and reflects an
investment of EUR 23,4 million.

Other Events

Spain Arbitration Ruling

As announced within the 2010 half-year year financial statements,
PUMA AG has filed a cancellation recourse against the arbitration
ruling regarding the PUMA trademark rights in Spain. As of the
reporting date, legal council and advisers continue to believe that
a favourable outcome in this case is more likely than not.

PUMA takes over full control of Business in China as of January 1,
2011

PUMA AG will acquire the remaining 49% of the shares of its
long-term Chinese joint venture Liberty China Holding Ltd, effective
1 January 2011, to be in full control of its business activities
in China and Hong Kong. Liberty has been a Joint Venture between
PUMA and Swire Resources Ltd., of which PUMA has owned 51%. Under
the Liberty holding, PUMA China Ltd. and PUMA Hong Kong Ltd. have
been responsible for the distribution of PUMA products in
China for several years and will continue to do so. Through the
full take over, PUMA´s position in China will be further
strengthened and maximized, making sure that the Sportlifestyle
Company taps into the enormous potential that the largest market in
Asia offers. PUMA will be in sole charge of driving its growth
strategy to capture all opportunities on the Chinese market as
part of PUMA´s five-year growth strategy. The impact on the
consolidated financial statements will be insignificant, as the
joint venture had already been consolidated within PUMA AG at
100% since its inception

Irregularities committed by Greek Joint Venture partner

As already mentioned in our ad hoc release on 25. October 2010,
irregularities were discovered at PUMA´s Joint Venture `PUMA Hellas
S.A.´ in Greece, which will affect PUMA´s consolidated financial
statements for the full year 2010 and require a restatement of the
2009 figures in the 2010 statements. All necessary measures have
been initiated and are on-going. For further information and
details please refer to the ad hoc release of Monday, 25 October
2010, on www.about.puma.com

Outlook Full Year 2010

The second half of the year continues to show solid sales growth
which should more than offset the flat performance in the first half
of the year. Therefore, management now expects full year
consolidated sales to grow at a mid to high single digit rate.
Considering slight changes in the gross margin, operating result
before special items should improve compared to last year.

This document contains forward-looking information about the
Company´s financial status and strategic initiatives. Such
information is subject to a certain level of risk and uncertainty
that could cause the Company's actual results to differ
significantly from the information discussed in this document.
The forward-looking information is based on the current
expectations and prognosis of the management team. Therefore,
this document is further subject to the risk that such
expectations or prognosis, or the premise of such underlying
expectations or prognosis, become erroneous. Circumstances that
could alter the Company's actual results and procure such results
to differ significantly from those contained in forward-looking
statements made by or on behalf of the Company include, but are not
limited to those discussed be above.

###

PUMA is one of the world´s leading sportlifestyle companies that
designs and develops footwear, apparel and accessories. It is
committed to working in ways that contribute to the world by
supporting Creativity, SAFE Sustainability and Peace, and by
staying true to the principles of being Fair, Honest, Positive
and Creative in decisions made and actions taken. PUMA starts in
Sport and ends in Fashion. Its Sport Performance and Lifestyle
labels include categories such as Football, Running, Motorsports,
Golf and Sailing. Sport Fashion features collaborations with
renowned designer labels such as Alexander McQueen, Yasuhiro
Mihara and Sergio Rossi. The PUMA Group owns the brands PUMA,
Cobra and Tretorn. The company, which was founded in 1948,
distributes its products in more than 120 countries, employs more
than 9,000 people worldwide and has headquarters in
Herzogenaurach/Germany, Boston, London and Hong Kong. For more
information, please visit www.puma.com

Rounding differences may be observed in the percentage and numerical
values expressed in millions of Euro since the underlying
calculations are always based on thousands of Euro.

Rounding differences may be observed in the percentage and numerical
values expressed in millions of Euro since the underlying
calculations are always based on thousands of Euro.

Rounding differences may be observed in the percentage and numerical
values expressed in millions of Euro since the underlying
calculations are always based on thousands of Euro.
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end of announcement euro adhoc
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ots Originaltext: Puma AG Rudolf Dassler Sport
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Kerstin Neuber

Telefon: +49 (0)9132 81-2984

E-Mail: Kerstin.Neuber@puma.com

Branche: Consumer Goods
ISIN: DE0006969603
WKN: 696960
Index: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX,
Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
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München / regulated dealing