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.
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