Puma adjusts full year profits as sales slideFriday, 27 July 2012
"Despite the poor consumer sentiment and challenging business environment particularly in Europe, PUMA achieved respectable sales growth in the second qua rter and first half of this year", stated Franz Koch, CEO of PUMA. "However, pressure on gross profit margins and further strategic investments related to our "Back on the Attack" plan in combination with a weakening European business impacted second quarter net earnings. We have therefore taken measures to secure sustainable and profitable growth by broadening the scope of our Transformation Program. This program is designed to reduce complexity and establish a more efficient business model, operating on a leaner cost base".
The Germany-based business has cut its estimates for the entire year. Sales are predicted to increase around 5 percent instead of the previous estimate of 5-9 percent, while net profits are predicted to "decrease significantly" compared to 230 million Euros in 2011.