PUMA has admitted it faces challenges in Europe after first quarter earnings fell 4.9 per cent to €74 million.
Sales for the period increased 6.1 per cent to €820.9 million.
The company blamed the disappointing results on restrained consumer spending in the wake of the financial crisis in the eurozone as well as a milder than expected winter, which PUMA says dampened sales at wholesale accounts and retailers and slowed the intake of spring collections.
“After a strong finish in 2011, PUMA’s first quarter sales growth could not keep pace with that of recent quarters, translating into weaker bottom line results,” says Franz Koch, PUMA’s CEO.
“As a consequence, we have begun to respond to these challenges, optimising the efficiency of our business model in the EMEA region.
“In addition, I am confident that the product innovations we have in the pipelines will contribute to achieving our full-year sales and earnings targets against the background of this extraordinary sports year.”
One of PUMA’s first moves has been to appoint Sergio Bucher, formerly its head of global retail, as the new general manager for Europe.
A strong sales performance in Asia/Pacific and the Americas counterbalanced the softening sales in the EMEA region.
Fuelled by growth in India, Korea and Japan, which all saw significant demand for PUMA’s motorsport, running and lifestyle products, Asian sales climbed 10.2 per cent to €192.1 million.
Sales in the Americas improved by 8.5 per cent to €260.8 million.
Within Latin America, Mexico, Argentina and Brazil posted strong double digit growth rates.
Sales in North America also rose, supported by new joint ventures with Wheat Accessories and Janed socks and bodywear.
