Puma issues profit warning on European slowdown

Published November 20, 2014

Sportswear maker Puma has warned that profits will fall sharply this year as business in Europe suffers in the wake of the continent's debt problems.

Puma, majority owned by French-based PPR SA, said Wednesday that first-half net earnings will be about 13 percent lower than a year ago, and that it will speed up cost-cutting efforts in response, incurring one-time charges of some €100 million ($122 million) in this year's second half.

As a result it said full-year earnings will "decrease significantly" from last year's €230.1 million.

Puma is also lowering its full-year revenue outlook — predicting growth in the mid-single digit range, down from the previous forecast of a high-single digit increase.

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