FRANKFURT--German sportswear maker Puma SE Wednesday cut
guidance for the full year, citing negative foreign exchange
effects.
"The continued adverse developments of foreign exchange rates
during the recent months, particularly the strengthening of the
U.S. dollar versus nearly all other currencies, had a significant
negative impact on Puma's gross profit margin and operating result
(EBIT) in the first quarter of 2015," the company said.
Puma expects a drop in its gross profit margin of 100-150 basis
points from 46.6% in 2014. The operating result this year will be
between 80 million and 100 million euros ($89.17 million-$111.46
million), it added.
First-quarter sales were around EUR821.4 million, up from
EUR725.7 million in the year-earlier period. The company said net
earnings came to EUR24.8 million, below last year's EUR35.6
million. Likewise, earnings before interest and tax fell to EUR37.5
million from EUR58.6 million in the first quarter of 2014.
Write to Monica Houston-Waesch at nikki.houston@wsj.com
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