Puma Reports 16% Profit Drop, Expects Sales Decline (Update2)

Puma AG, Europe’s second-largest sporting goods maker, reported a 16 percent drop in second- quarter profit because of increased discounting and said sales may start to fall in the second half.

Net income slid to 38.5 million euros ($55.3 million), or 2.55 euros a share, from 45.6 million euros, or 2.98 euros, a year earlier, the company reported today. Puma, controlled by French retailer PPR SA, slid 4.6 percent in Frankfurt trading, the most in almost two months.

Sporting-goods makers have cut prices as they held too much inventory after a decline in demand for branded shoes and jerseys. Puma said consumers’ restraint may cause sales to drop in the second half after rising 4.1 percent to 600 million euros in the quarter. Larger rival Adidas AG said this week that second-quarter profit was almost erased, hurt by discounting.
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Courtesy : www.bloomberg.com

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