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Puma Narrows FY Core Profit Outlook

The logo of German sports goods firm Puma is seen on a shoe after the company's annual news conference in Herzogenaurach February 20, 2014. (Reuters)
The logo of German sports goods firm Puma is seen on a shoe after the company's annual news conference in Herzogenaurach February 20, 2014. (Reuters)
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Puma Narrows FY Core Profit Outlook

The logo of German sports goods firm Puma is seen on a shoe after the company's annual news conference in Herzogenaurach February 20, 2014. (Reuters)
The logo of German sports goods firm Puma is seen on a shoe after the company's annual news conference in Herzogenaurach February 20, 2014. (Reuters)

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.

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Sources: Shein Weighs Sale of Less Than 10% of Company in London IPO

A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
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Sources: Shein Weighs Sale of Less Than 10% of Company in London IPO

A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo

Fast fashion retailer Shein is considering asking UK regulators to waive listing rules that require at least 10% of its shares to be sold to the public in its planned London flotation, two people with knowledge of the matter said.
The company is exploring this option to facilitate its IPO, one of the people said, according to Reuters.
If granted, it would likely be the first time that a company in London has been allowed to list below the recent 10% rule.
Singapore-headquartered Shein, which sells $5 tops and $10 dresses mostly made in China, in June filed confidentially with the Financial Conduct Authority (FCA) for a London listing.
However, Britain's financial regulator is taking longer than usual to approve its application, Reuters reported last week.
The people declined to be identified as they were not authorized to speak to the media.
Shein declined to comment.
Shein was valued at $66 billion in a fundraising round last year. A 10% flotation at that valuation would make the IPO worth $6.6 billion. The biggest European IPO this year was perfume and fashion company Puig's $2.9 billion deal, according to Dealogic.
The current valuation of Shein and how much it is looking to raise via the London listing was not immediately known.
London changed its listing rules in 2021 to boost the attractiveness of the venue for companies. It cut the proportion of shares an issuer is required to float to 10% from 25%, reducing potential barriers for large IPOs, the FCA said at the time.
In July, Britain ushered in the biggest reform of company listing rules in more than three decades to help it compete more effectively with New York and the European Union for new issuers.
Shein began to explore a listing on the London Stock Exchange early this year, Reuters reported in May, citing sources. The China-founded company's original plan to list in New York was derailed after opposition from US lawmakers.
Shein is also waiting for China's securities regulator to approve its plans for a London IPO, Reuters previously reported. Its revenues are expected to hit $50 billion this year, up 55% from 2023, according to Coresight Research.