German sportswear label PUMA saw its share price fall to a six-year low, after the company narrowed its profit forecast for the year due to "cautious consumer sentiment and higher freight costs" earlier this week, according to MarketWatch.
In its latest earnings report, the group projected that its full-year profit would tally between €620 million EUR and €670 million EUR, down from its original estimate of €700 million EUR. As a result, PUMA's shares dropped by 13% to reach €36.20 EUR, a 30% decrease across the year.
In the second quarter, the company reported a 2.1% increase in currency-adjusted sales to reach €2.12 billion EUR. Profit, before interest and tax, was up by 1.6% at €117 million, though the figure still fell below analyst expectations, per Fashion United. On a regional basis, sales in the Americas climbed 9%, while revenues in Europe, the Middle East, and Africa were down by 4.3%.
“We fully delivered on our outlook for the quarter and are well on track to deliver on our outlook for the full year,” Arne Freundt, PUMA's CEO, said in a statement. Despite this, the company still lowered its profit forecast, causing shares to plummet.
Freundt added that the company's latest results were impacted by "an environment of increased currency headwinds, stressed supply chains and macroeconomic and geopolitical challenges that are weighing on consumer sentiment around the world."
See PUMA's full Q2 2024 report here.
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