Puma Q3 profit tumbles but reaffirms guidance
- Q3 earnings drop 30.7% to EUR20m (US$21.7m)
- Gross margin falls 50 bps to 45.8%
- Sales grow 8.4% to EUR914m
Puma reaffirmed its full-year guidance
German sportswear brand Puma says currency effects contributed to a drop in third-quarter earnings, but has reaffirmed its full-year guidance.
Net earnings dropped 30.7% to EUR20m (US$21.7m) from EUR28.9m in the year ago period, hurt by negative currency effects, in particular the euro's depreciation against the dollar.
“Puma has already taken, and will continue to take, countermeasures but the impact will not fully offset the negative currency effects,” said CEO Bjorn Gulden.
Gross margin fell short of last year's figure by 50 basis points to 45.8%, also due to adverse currency effects impacting cost of goods sold.
Reported sales, however, were up 8.4% to EUR914m, boosted by sales growth across all product categories and double-digit percentage growth in Latin and North America.
Sales in the EMEA region declined by 3.6% to EUR375.7m, while North and Latin America sales were up 10.8% to EUR325.1m. In Asia/Pacific, sales grew 5% to EUR213.6m. While China and India showed “substantial” growth within the region, sales in Korea declined.
Puma's full-year guidance for 2015 remains unchanged, with an increase in the medium single-digit range for full-year currency-adjusted net sales and EBIT between EUR80m and EUR100m, with net earnings impacted accordingly. The company is expecting a slightly softer drop in gross margin at the lower end of the range of minus 100 to 150 basis points versus last year.
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