Bloomberg News

Puma Faces ‘Headwinds’ in Final Quarter as Input Costs Rise

October 25, 2011

(Closes shares in third paragraph.)

Oct. 25 (Bloomberg) -- Puma SE, Europe’s second-largest sporting-goods maker, may face some “headwinds” in the fourth quarter as raw-material prices rise and the company increases investment, General Manager Finance Michael Laemmermann said.

The last three months of the year are typically Puma’s weakest quarter, Laemmermann said today on a call to reporters, declining to give an outlook for the period. The Herzogenaurach, Germany-based company is raising some prices by about 10 percent to compensate for “ongoing input-cost volatility,” while Puma’s athletic gear is not performing as well as competitors’ in North America, Chief Executive Officer Franz Koch said.

Puma fell 3 percent to 228.7 euros in Frankfurt trading. The stock has fallen 7.8 percent this year, giving the maker of Future Cat Ferrari-branded sneakers a market value of about 3.4 billion euros ($4.7 billion).

Puma earlier reiterated its targets for the year of 3 billion euros in sales and growth of “mid single-digits” in net earnings after reporting third-quarter profit that beat estimates. Net income was little changed at 81.7 million euros, the sporting-goods maker said today in a statement, exceeding the 76.8 million-euro average estimate of five analysts compiled by Bloomberg. Sales climbed 10 percent excluding currency shifts, or 7.3 percent in euro terms.

--Editors: Paul Jarvis, Tom Lavell.

To contact the reporter on this story: Andrew Roberts in Paris at aroberts36@bloomberg.net

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net


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