Puma AG Reports 16% Drop In Q2 Profit Due To Increased Discounting
Puma AG Friday reported a 16% drop in Q2 profit due to "increased discounting and said sales may start to fall in the second half," according to Holger Elfes of BLOOMBERG NEWS. Puma said that net income fell to $55.3M, or $3.66 a share, from $65.5M, or $4.28 per share, a year earlier. Puma said that consumer restraint "may cause sales to drop in the second half after rising" 4.1% to $861M in Q2. But the company's profit beat the $47M average estimate of seven analysts surveyed by Bloomberg News. Puma said that sales in the Americas, "adjusted for currency swings, rose" 6.9% during the quarter, while Asia-Pacific revenue fell 4.5% on that basis. Sales from Europe, Middle East and Africa declined 1.4%. Puma said that shoe sales during Q2, "which generate almost three-fifths of total revenue, gained" 1.5%. Clothing sales fell 1.2%. Elfes notes Puma's stock dropped as much as 3.7% in trading Friday (BLOOMBERG NEWS, 8/7).
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