Puma Q4 profit doubles despite sales slide

GERMANY: Puma Q4 profit doubles despite sales slide

By just-style.com | 17 February 2010

Q4 net profit doubles to EUR16.2m
FY net profit down 45% to EUR128.2m
Expects better year after restructuring

German sportswear giant Puma doubled its fourth quarter profit to EUR16.2m (US$22.2m), despite a double-digit sales decline.

The company said fourth quarter sales, currency-adjusted, had fallen 10.1% to EUR489.5m, hit by pronounced declines in the EMEA and Asia Pacific regions.

However, operating profit was up 21.3% to EUR45m, and there was a reduced impact of special items linked to restructuring than in the same period last year.

For the full year, sales slid 3.7% to EUR2.5bn, with global brand sales down 6.4% to EUR2.6bn.

Net earnings were EUR128.2m, some 45% down on the previous year's figure of EUR232.8m, Puma said.

In the fourth quarter, EMEA sales declined 10.9%, and revenues fell 2.6% in the Americas and 16.2% in Asia Pacific.

Globally, footwear sales dropped 16.8% and apparel sales fell 10.9%, but accessories were up 39.4%, mainly due to consolidation effects.

"Despite the global financial crisis and only a few major sports events, Puma remained firm in a difficult market environment," said company CEO Jochen Zeitz.

"The comprehensive restructuring and re-engineering programme that we implemented during the year enabled us to become an even more efficient and focused company that is aligned to today's economic realities."

Puma expects a better year in 2010, helped by the conclusion of the company's restructuring and the forthcoming football World Cup in South Africa.

The company said it expected gross profit margins to be comparable to 2009.

Sectors: Apparel, Finance, Footwear

Companies: Puma