GERMANY: Puma slumps to Q4 loss on one-off costs
- Q4 net loss of EUR42.6m, versus EUR33.1m profit
- Q4 sales up 11.7% to EUR804.7m
- Expects flat sales in 2013, but improved earnings
Sporting goods giant Puma posted a net loss in the fourth quarter of 2012, hit by a number of one-off special items which cost the business nearly EUR100m (US$134m).
For the full year, sales rose 8.7% to EUR3.3bn, but a total of EUR177.5m in one-off costs resulted in a net profit of EUR70.2m, down 69.5% on 2011.
The German company said it had performed strongly in Asia and the Americas, where sales were up 16% and 12% respectively in the fourth quarter.
But special items of EUR98.2m included costs related to trademark rights in Spain, the restructuring of the company’s distribution network and the closure of subsidiaries in Greece, Cyprus and Bulgaria.
“Despite a continuously challenging market environment, particularly in Europe, Puma delivered a strong sales performance in the fourth quarter, enabling us to meet our sales projections for the full year of 2012,” said company CEO Franz Koch.
“We have completed defining the scope of Puma’s Transformation and Cost Reduction Program, and will continue with the implementation of all measures throughout 2013 to improve the company’s profitability.
“I want to reiterate that it is not our priority to push for sales growth at any cost, but instead focus on improving desirability for the Puma brand.”
The company expects 2013 sales to be flat, but anticipates a “significant improvement” in its net earnings.
More than 170 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 las...
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
This report provides information on the latest developments in: antimicrobial sewing thread; carbon nanotube fibres; compression garments; environmentally friendly finishing treatments; environmentall...
The recent garment factory tragedies in Bangladesh are pushing the industry towards a tipping point - as consumers call for increased sustainability and information about where their clothes come from...
This report analyzes the worldwide markets for Sports and Fitness Clothing in US$ Million by the following Product Segments: Sports Apparel, and Fitness Clothing. The report provides separate comprehe...
Unveiling a new five-year plan to improve worker safety at the factories in Bangladesh that produce their clothing, North American brands and retailers were keen to stress the similarities between the...
This report provides information, analysis and valuable insight on developments relating to the performance apparel industry in the following categories: acquisitions, divestments and mergers; corpora...
- Li & Fung: China consumption to bring major change
- INTERVIEW: Crystal CEO rises to the challenges
- Innovation and e-commerce key to Nike's growth
- Pacific Crystal Textiles gears up for production
- Opinion divided on China cotton import cuts
- Addressing anaemia key to Cambodia productivity
- Chinese firm to invest in Ethiopian textile plant
- Activists slam dismissals at Sri Lanka shoe firm
- Columbia Sportswear hires global manufacturing VP
- Textile value chain making Africa more competitive