PARIS — Impacted by a slowdown in business in the first half, particularly in Europe, Puma SE lowered its sales and earnings forecast for the full year.
The news sent Puma’s shares sliding on the Frankfurt Stock Exchange, and they closed down 4.2 percent to 214.54 euros, or $263.40 at current exchange rates.
The Herzogenaurach, Germany-based sporting goods giant, which is owned by PPR, said it expects net sales growth for the full year to rise in the midsingle digits in lieu of the previously stated high-single digits.
Puma also said it expects first-half net profits will be down approximately 13 percent year-on-year. The firm is due to report its results on July 26.
In the second half of the year, Puma plans to speed up and expand its “transformation program” geared at streamlining costs and increasing efficiencies. It estimates the actions will require one-time costs of up to approximately 100 million euros, or $122.7 million at current exchange rates.
As a result, the company said it expects a significant decrease in net profits versus the 230.1 million euros, or $320.4 million at average exchange rates for the period, posted last year.
Puma has had a hard time keeping up with the pace of recent quarters, coming off of a year which saw the company eclipse 3 billion euros in sales for the first time, with a 136.9 percent spike in fourth-quarter net earnings to 33.1 million euros, or $44.7 million. By contrast, the firm in April posted a 4.9 percent decline in net income in the first quarter to 73.9 million euros, or $96.8 million.
Parent company PPR’s shares closed up 1.3 percent in Wednesday trading on the Paris Bourse to 110.20 euros, or $135.30.
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion
“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)