Puma Second-Quarter Profit Declines More Than Analysts Estimated

Source: Puma

HERZOGENAURACH, Germany — Puma SE, Europe’s second-largest sporting goods maker, reported quarterly profit that declined more than analysts estimated as sales fell in all regions.

Second-quarter earnings before interest and tax fell to 31 million euros ($40.9 million) from 47 million euros a year earlier, the Herzogenaurach, Germany-based company said today in a statement. Analysts predicted 36.1 million euros, according to the average of 11 estimates compiled by Bloomberg.

Puma is closing stores, eliminating jobs and cutting product ranges to combat declining footwear sales, while seeking to boost its performance-wear credentials. The sporting-goods maker cut its 2013 forecasts in May, saying it expects a low-to- mid single-digit decline in currency-adjusted sales as well as pressure on the gross profit margin during the second half. It reiterated the guidance today.

“Southern Europe and the Far East remain challenging,” Puma said in the statement. Revenue fell 4 percent to 692 million euros on a currency adjusted basis, trailing the 709 million-euro average of analysts estimates.

Puma still expects an increase in full-year net income compared to 2012, it said.

Former Pandora A/S head Bjoern Gulden started as Puma Chief Executive Officer this month, one of a number of senior management changes that owner Kering SA has made at the company.

By: Andrew Roberts, Editors: Paul Jarvis, Marthe Fourcade, Thomas Mulier.