German sportswear maker Puma on Wednesday narrowed its outlook for full-year core profit as it reported its second-quarter results, citing expected currency headwinds, higher freight costs and continued muted consumer sentiment.
Puma, which has recently launched new marketing initiatives in an effort to compete better with bigger rivals like Adidas and Nike, has been grappling with weaker consumer demand and excess stocks at the sportswear retailers through which it makes most of its sales.
It now expects operating profit (EBIT) to come in a range between 620 million and 670 million euros ($676-$731 million) compared to between 620 million to 700 million euros previously.
Puma's shares were down 3.5% in early Frankfurt trade.
It confirmed its full-year outlook for currency adjusted revenue in mid-single-digit percentage, based on a strong order book for the second half of the year.
The company said it expected net income to change in 2024 in line with the operating result. It reported a net income of 304.9 million euros in 2023.
Currency-adjusted sales rose 2.1% to 2.12 billion euros in the quarter, in line with the 2.15 billion expected by analysts, according to LSEG data, driven by 9% growth in the Americas region.
In the Europe/Middle East and Africa region, currency-adjusted sales dropped by 4.3% to 817.9 million euros. A return to growth in Europe was offset by a decline in Eastern Europe, the Middle East, and Africa after a strong quarter in the previous year.
The Asia/Pacific region recorded sales growth of 1.9%, Puma said, boosted by growth in Greater China.
Quarterly EBIT was up by 1.6% to 117 million euros despite negative currency effects.
