World Cup expenditure sees Puma's profits drop E-mail
Friday, 04 August 2006

German sports company Puma saw profits drop in the second quarter after an expensive marketing, sales and sponsorship campaign for the World Cup. But despite a 14.9% fall in net profit, the Herzogenaurach-based firm remains confident for the full year.

Puma sponsors football World Cup winners Italy and had 11 other teams at the tournament wearing its kit, ahead of arch-rival Adidas and Nike. Net income fell to 50m euros ($64m: £34m), the company said.

During the football tournament in Germany, which ran from 9 June to 9 July, Puma ran a high-profile television campaign featuring World Cup legend Pele. The firm also carried widespread advertising in other German media outlets, while its television campaign also ran on television in the UK.

Among the 12 teams wearing Puma kit, many were emerging soccer nations and Puma marketed itself as a friend of Africa. The company has traditionally lived in the shadow of bigger outfit Adidas - an official World Cup sponsor based in the same small southern German town.

Puma said revenue in the quarter rose 38.2% to 547m euros, driven by sales of soccer gear around the World Cup.

It also said new orders were up by one third, with growth coming from all regions, including Europe.

Asia and Americas were the strongest regions, but the Europe, Middle East and Africa (EMEA) region also saw sales rise 8.9% on a year ago.


 
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