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Athletic wear company Puma's 4Q profit rises 17 percent to euro38.3 million

Athletic wear company Puma's 4Q profit rises 17 percent to euro38.3 million

Puma AG, the world's third-biggest sporting goods and apparel company, said Tuesday fourth-quarter profit rose 17 percent on the back of improved sales.
The increase came as the company moved ahead with opening more of its own branded stores and demand for its apparel rose across its markets in Europe, the Middle East, Africa and Asia, but dipped in the Americas.
Puma earned euro38.3 million (US$56.7 million) in the October-December period, up from euro32.8 million a year earlier. Sales rose 5 percent to euro504.5 million (US$747.5 million).
Growth was strongest in Europe, the Middle East and Africa, where Puma sponsors several soccer teams. Sales rose by 19.9 percent from the fourth quarter of 2006 and were up 14.3 percent in Asia. But in the Americas, sales slipped 3.3 percent, a move the company said it had expected given the intense competition there with rivals Nike Inc. and Adidas AG, which owns Reebok.
For the year, the Herzogenaurach-based company earned euro269 million (US$398.6 million), up 2.2 percent from euro263.2 million in 2006, while sales showed a moderate rise to euro2.37 billion (US$3.51 billion) from euro2.36 billion a year earlier.
The company also said it intends to raise the dividend paid to shareholders by 10 percent to euro2.75 (US$4.07) a share.
"Although Puma faced a challenging year, we did not only meet most of our expectations in 2007, but even exceeded them in many points," Puma chief executive Jochen Zeitz said in a statement.
Investors agreed, sending Puma shares up 4.6 percent to euro242.44 (US$359.22) in Frankfurt trading.
"Puma had an excellent and successful start into the extraordinary sports year (of) 2008 by winning the African Cup of Nations through Egypt's win, securing a strong brand visibility on the pitch as the leading equipment supplier," Zeitz said.
Puma supplied Egypt's team, and many others in the African Cup, with uniforms and equipment.
French luxury goods company PPR took over Puma last year, acquiring more than 62 percent of the company's shares, but Puma continues to report separately and keep its stock market listing.
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On the Net:
http://www.puma.com


Updated : 2021-04-17 12:58 GMT+08:00