Puma, the German sporting-goods company, announced on Wednesday that it experienced a decline in earnings during the second quarter. This decline was primarily attributed to higher costs and currency effects.
For the quarter, Puma reported a net profit of €55 million ($60.8 million), a decrease from the €84.3 million earned in the same period last year. However, on a reported basis, the company's revenue grew by 5.9% to reach €2.12 billion.
Furthermore, Puma's gross profit margin for the second quarter stood at 44.8%, compared to 46.5% in the previous year. This decrease can be attributed to currency effects, as well as increased sourcing and freight costs and promotional expenses.
In terms of earnings before interest and taxes, Puma experienced a 21% decline to €115.3 million compared to the same quarter last year. This decrease was mainly driven by a weaker gross profit margin. Additionally, operating expenses increased by 6.6% to reach €843.4 million.
Puma acknowledged that the company continues to face challenges due to volatile retail demand, particularly in North America and Europe. The uncertain consumer sentiment, influenced by high interest rates and inflation, remains a contributing factor to the ongoing challenges.
Despite the current market conditions, Puma has maintained its outlook for strong sales growth with a high single-digit percentage increase by 2023. The company also reiterated its expectations for EBIT between €590 million and €670 million.
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