Puma says Q1 earnings hit by wary consumers
German sportswear company Puma has said wariness among European consumers hurt its first quarter earnings, with net profit falling 5% and results missing forecasts.
Puma said sales in Europe, which accounted for over 40% of turnover in 2011, fell 1.4% in the quarter.
“In addition to the challenging overall business climate, the late arrival of winter in Europe dampened sales at wholesale accounts and retailers,” Puma said in a statement.
Euro zone consumer confidence fell in April after three months of gains, the European Commission said recently.
Group footwear sales also dropped, falling 2.1% in the quarter. Puma had said last year it was losing out to rivals in fast-growing categories such as lightweight running shoes, which are surging in popularity in the US.
Puma stuck to its outlook for 2012, saying new products, such as in the lightweight category, as well as moves to make its European operations more efficient would help it to sales growth of between 5 and 9% and a mid single-digit percentage rise in net profit.
The company, owned by French luxury goods group PPR, posted net profit of EUR74 million for the three months to end-March on sales up 6.1% to EUR820.9 million.
