PUMA’s 2018 Management Report had predicted a currency-adjusted growth in net sales of around 10% for the financial year 2019. This forecast was increased several times throughout the year and PUMA ultimately expected a currency-adjusted sales growth of around 15% for the financial year 2019. PUMA was able to surpass the revised forecast for the financial year 2019, exceeding the originally planned sales target.
More details on sales development are provided below.
In the financial year 2019, PUMA's net sales grew in the reporting currency, the Euro, by 18.4% to € 5,502.2 million and, as a result, sales exceeded the € 5 billion mark for the first time. The currency-adjusted sales growth was 16.7%. All regions and all product divisions contributed to this development with double-digit growth.
In the Footwear division, sales increased in the reporting currency, the Euro, by 16.8% to € 2,552.5 million. Currency-adjusted sales increased by 15.6%. The strongest growth was therefore achieved in the Sportstyle, Running and Training, and Motorsport categories. The share of this division in total net sales fell slightly from 47.0% in the previous year to 46.4% in 2019.
In the Apparel division, sales increased in the reporting currency, the Euro, by 22.6% to € 2,068.7 million. Currency-adjusted sales increased by 20.5%. As a result, sales in the Apparel division exceeded the € 2 billion mark for the first time. The Sportstyle category was the main driver of sales growth. The Running and Training, and Motorsport categories also contributed to this growth. The share of the Apparel division increased to 37.6% of Group sales (previous year: 36.3%).
The Accessories division reported an increase in sales in the reporting currency, the Euro, by 13.5% to € 881.1 million. This corresponds to a currency-adjusted sales growth of 11.1%. Higher sales, particularly with socks and bodywear, as well as Cobra golf clubs contributed to this increase in sales. The division's share in Group sales decreased slightly from 16.7% in the previous year to 16.0% in 2019.
PUMA’s 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 22.0% currency-adjusted to € 1,395.3 million in the financial year 2019. This corresponds to a share of 25.4% in total sales (previous year: 24.3%). The increase in sales resulted from both the increase in like-for-like sales and from the targeted expansion of our portfolio of own retail stores. In addition to the opening of additional retail stores at selected locations worldwide, such as on Fifth Avenue in New York, we continued optimizing our portfolio of own retail stores in the past financial year, which also included modernizing existing retail stores in line with the "Forever Faster" store concept. This makes it possible to improve the shopping experience for our customers even further and to present PUMA products and related technologies in an even more attractive environment. This strengthens PUMA’s position as a sports brand.
Our e-commerce business continued to record far above-average growth in 2019. This was brought about by, for example, the expansion of the product range in online stores worldwide and by our targeted sales promotions in the online business. 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, the so-called “Black Friday” and “Cyber Monday”, turned out to be particularly successful.
For various products (such as watches, eyewear, and fragrances), PUMA issues licenses authorizing independent partners to design, develop, manufacture, and sell these products. Sales revenue from license agreements also includes some distribution licenses for different markets. PUMA's licensing and commission income increased in the financial year 2019 by 53.9% to € 25.1 million. The increase was the result of new collaborations.