Puma Shares Plunge After Company Cuts Sales, Earnings Forecast For Year
Puma's shares fell after the company cut its full-year sales and earnings guidance as its business "slowed in Europe," according to Chris Bryant of the FINANCIAL TIMES. Puma, majority-owned by luxury goods group PPR, also said that it had "decided to accelerate and expand a cost-cutting programme" that will trigger €100M ($123M) in one-time costs. Consolidated earnings before interest and taxation were around 11% lower than last year. Sales increased 8.8% in that period. The stock traded more than 5% lower at €214.15 ($263) in late-morning trading in Frankfurt, having declined as much as 7.3%. Shares in adidas, Puma's local rival, also fell (FINANCIAL TIMES, 7/18). The FINANCIAL TIMES also reported that Puma's "net earnings" for the first half of '12 will be 13% below the €115M reported for the same period last year (FINANCIAL TIMES, 7/18).