The German sports goods maker Puma AG has reported first-quarter net earnings below analysts' estimates on Wednesday, mainly due to its weak U.S. business, but it confirmed its full-year outlook.
However, Puma still expects sales to rise by a single-digit percentage rate this year on a currency-adjusted basis, it said on its Web site.But the world's third-largest sportswear maker said brand investments could affect its 2008 operating margin. "In a volatile market environment it is difficult to outline the final impact on profitability," Puma said.
Puma said first-quarter net earnings fell to 90.1 million euros from 96.6 million a year earlier and below a Reuters analyst poll average estimate of 97 million.
Net sales rose 6.6 percent to 673.3 million euros, slightly below estimates.
Puma shares were seen starting trading 1.3 percent lower, according to pre-market data from brokers by 0626 GMT, with the broader German market seen opening up 0.5 percent.
Gucci owner PPR , the French fashion-to-furniture retailer that owns about 67 percent of Puma, last month suffered a steeper-than-forecast fall in first-quarter sales, signaling a slowdown in consumer spending was hitting luxury goods.
The French retailer said then that Puma's first-quarter sales fell in the Americas due to weak U.S. mall-based business while footwear growth was dragged down by the U.S. economic slowdown.
A crisis at U.S. sports retailer Foot Locker has hurt sports retailers such as Nike and German rival Adidas . In the fourth quarter of last year, Foot Locker shut stores, cancelled existing orders and issued no new orders.
Still, Adidas on Tuesday reported first-quarter profit rose by nearly a third, despite another weak quarter for its Reebok brand in the United States
Gucci owner PPR , the French fashion-to-furniture retailer that owns about 67 percent of Puma, last month suffered a steeper-than-forecast fall in first-quarter sales, signaling a slowdown in consumer spending was hitting luxury goods.
The French retailer said then that Puma's first-quarter sales fell in the Americas due to weak U.S. mall-based business while footwear growth was dragged down by the U.S. economic slowdown.
A crisis at U.S. sports retailer Foot Locker has hurt sports retailers such as Nike and German rival Adidas . In the fourth quarter of last year, Foot Locker shut stores, cancelled existing orders and issued no new orders.
Still, Adidas on Tuesday reported first-quarter profit rose by nearly a third, despite another weak quarter for its Reebok brand in the United States
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