Puma reported second-quarter profit that topped analysts' estimates as the brand "got a lift" from Europe's football championships and a focus on the women’s market, according to Aaron Ricadela of BLOOMBERG. Earnings before interest and taxes rose to €12M ($13.2M), Puma said in a statement, beating analysts' average expectation of €10.6M ($11.7M). Sales rose 7% to €827M ($910M), compared with the €820M ($902M) consensus. The company "fought negative currency-conversion effects by keeping a lid on costs." NPD Group analyst Matt Powell said that sales of Puma sports shoes at U.S. retailers rose 40% in May and 17% in June, "helped by sales of women’s sneakers." Puma CEO Bjorn Gulden "has been promoting women’s designs marketed with singer Rihanna" that he said has created a "halo effect" over the whole company. Kepler Cheuvreux analyst Juergen Kolb said, "The brand-revival plan is intact as new products resonate with customers and the cooperation with Rihanna increases media coverage and visibility." Kolb has a hold rating on Puma. Shares of Puma fell 1% to €219.90 ($242) at 11:35am in Frankfurt. Gulden said that Puma has been "very tight" on expenses to combat a "stronger U.S. dollar that reduced its gross profit margin" to 45.6%, from 46.7% a year ago (BLOOMBERG, 7/27).
