By  on August 7, 2009

PARIS—Puma AG, the world’s third-largest sporting equipment company, reported better-than-expected second-quarter earnings on Friday, but remained cautious about the second half of 2009.
 
“We … anticipate a continued challenging and volatile retail industry due to the decline of private consumption as a result of the weakness in the global economy, which may negatively impact sales in the second half,” the German company said in a statement.

Net profit in the second quarter ended June 30 slid 15.6 percent to 38.5 million euros, or $52.36 million at average exchange rates, reflecting the lack of major sporting events in the period compared with the previous year, when results were lifted by the Euro 2008 soccer tournament.

Parent company PPR SA, the French retail-to-luxury group, reported last week that Puma’s operating profit in the second quarter rose 1.2 percent to 63.1 million euros, or $85.8 million, on sales up 4.1 percent to 600.3 million euros, or $816.4 million, beating analysts' estimates. 

Puma, whose main competitors are Nike Inc. and German rival Adidas AG, earlier this year stepped up its ongoing savings program in response to the downturn. The program is targeting savings of 150 million euros, or $215.8 million, in 2010.

For complete coverage see Monday’s WWD.

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