German sports brand Puma saw its profits slide, despite growth in sales. According to reports, the company made 32.8 million euros (£22.2m) profit, down 26% on the previous year and below analyst's predictions. The group put the drop down to rising costs incurred as it expanded its operations and restructured its marketing and product development. However sales rose 37% during the period to 480.6m euros (£324m).

After Nike, Puma is Europe's second largest sports good maker and the sporting goods company has invested more in designing more directional footwear and advertising its products. Looking ahead, the company said it expected 2007 sales to increase by a mid to high single-digit percentage rate and net profit to rise at least 10%. The Herzogenaurach-based firm's sales have increased five-fold in the past six years.