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.
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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.