GERMANY: Puma Q4 loss widens on one-time charges
- Q4 loss widens to EUR115.2m
- Sales fell 13.2% to EUR698.3m
- 2014 will be start of company's turnaround
Sportswear brand Puma says it expects 2014 to mark the start of its turnaround, after reporting a wider fourth-quarter loss on the back of lower sales and one-time charges.
The German company today (20 February) said its net loss widened to EUR115.2m (US$157.8m) during the last three months of 2013, compared to a loss of EUR42.6m in the same period of the prior year.
One-time charges amounted to EUR129m during the quarter. These, Puma said, related to the closure of its product development centre in Vietnam, the relocation of its international product functions from London, and the intended centralisation of its global and European retail operations from Switzerland to its Herzogenaurach HQ.
Sales fell 13.2% to EUR698.3m, mainly due to weakening currencies in Japan, Russia, Turkey and various countries in Latin America.
For the full year, net earnings slumped 92.4% to EUR5.3m from EUR70.2m a year earlier, while sales fell 8.7% to EUR2.99bn from EUR3.27bn.
Commenting on the results, CEO Bjoern Gulden said: "2013 has been a challenging year for Puma and there is no doubt that we have issues in terms of lack of brand heat, commercial products and desirable distribution.
"Nonetheless, Puma is a great brand and with our new brand positioning as the fastest sports brand in the world, we have a clear vision of where we want to go."
Puma expects net sales to be flat in 2014, but with "improved revenue quality", while gross margin is forecast to improve slightly, due to sourcing improvements and favourable changes in the product mix.
"This is not a quick fix, but 2014 marks the start of the turnaround," Gulden added.
Sports apparel is worn during workouts or any physical exercise to provide the wearer comfort and style. T-shirts, hoodies, shorts, and tracksuits are typical sport-specific apparel used while playing...
More than 220 companies have now signed the Accord on Fire and Building Safety in Bangladesh following the collapse of the Rana Plaza factory building in Dhaka, which killed more than 1,100 people in ...
This report provides information, analysis and valuable insight on developments relating to the performance apparel industry in the following categories:...
Inspection, testing and certification company SCS Global Services (SCS) has joined the Sustainable Apparel Coalition (SAC), and will promote its Higg Index sustainability measurement tool to help driv...
- Supply chain takeaways from Sourcing at MAGIC
- Why voters don’t want more global supply chains
- Cotton supply chain transparency an ongoing issue
- No simple way to be sustainable, says SAC CEO
- Denim and athleisure top picks for back-to-school
- H&M takes action over Myanmar child labour breach
- Vietnam garment industry calls for strategy update
- US Q2 in brief - Sears, Burlington, Tilly's
- Zara USA faces US$5m deceptive pricing lawsuit
- Li & Fung eyes supply chain speed in 3-year plan
- Too Many Standards
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Under Armour, Inc. (UA) - Financial and Strategic SWOT Analysis Review
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Myanmar's Garment Sector in 2015 - now with updated members' directory