Puma narrows full-year profit guidance, shares tank

7th Aug 2024 10:05

(Sharecast News) - Puma tanked on Wednesday as the sportswear maker narrowed its full-year core profit forecast, noting that macroeconomic and geopolitical challenges were weighing on consumer sentiment.

In results for the second quarter, Puma said it now expects earnings this year to be between €620m and €670m before interest and taxes, having previously guided to as much as €700m.

In Q2, currency-adjusted sales rose 2.1% to €2.1bn. Puma said this reflected a negative currency impact of about €50m. Meanwhile, earnings before interest and tax were up 1.6% to €117m despite.

Chief executive Arne Freundt said: "I could not be prouder of our team and our strong retail partnerships, which were key to delivering this result in an environment of increased currency headwinds, stressed supply chains and macroeconomic and geopolitical challenges that are weighing on consumer sentiment around the world.

"With view to our strong orderbook for the second half of the year, we reiterate our sales growth outlook in the mid single digit range and are narrowing our full-year EBIT outlook range to € 620-670m EBIT in light of these external factors."

At 1000 BST, the shares were down 13% to €36.02.