Puma warns on profit as debt crisis squeezes shoppers
The German sportswear maker already reported a disappointing first quarter
By CFOWorld staff | CFO UK | Published 09:34, 18 July 12
Sportswear maker Puma on Wednesday issued a profits warning posting a 13 percent fall in first half profits because of the ongoing squeeze on consumer spending and the euro zone debt crisis.
In an unscheduled statement ahead of second-quarter results due next week, Puma said it now expected sales in 2012 to rise by around 3-7 percent, compared to a previous forecast for an increase of almost 10 percent.
The German sportswear maker is more heavily exposed than larger rivals Nike and Adidas to markets in western Europe, where the region's debt crisis has impacted consumer spending and unemployment among the young people targeted by sportswear makers is high.
Puma already put a disappointing first quarter down to wariness among European consumers, who make up around 45 percent of its total sales.
Shares of Puma, which is controlled by French luxury goods group PPR slipped by 5 percent in early trade. PPR was down 1.7 percent.
Adidas, based in the same southern German town as Puma, opened 2 percent lower, making it the biggest faller on the German index of leading companies.
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