Puma Q1 net earnings down 29.2 percent

REPORT_ Puma first quarter consolidated net earnings declined 29.2 percent to 36 million euros

(49.3 million dollars) from 50 million euros (68.5 million dollars) last year. Earnings per share decreased to 2.38 euros (3.27 dollars) from 3.36 euros (4.61 dollars) a year ago.

Bjørn Gulden, Chief Executive Officer of the German sportswear firm, said, “The repositioning of Puma and the turnaround of the business will take time, but I am convinced that we are progressing well on all our key strategic priorities and that we have initiated the right projects to make 2014 the start of the turnaround.”

Operating profit decreased to 59 million euros (80.9 million dollars) from 79 million euros (108.3 million dollars) last year. The EBIT ratio decreased to 8.1 percent from 10.1 percent. The company’s first quarter sales declined 7.1 percent, as currency volatility in many countries had a negative impact on sales in euro terms. Currency adjusted sales declined slightly by 0.5 percent.

The company noted 2014 will be a turnaround year, where the brand will be re-established in the market place and brought back to a path of profitable and sustainable growth in the mid-term. For the full year, the company continues to expect flat net sales, slight increase in gross profit, EBIT to be about 5 percent of net sales, and net earnings to be about 3 percent of net sales.