Puma profits drop in third quarter on marketing, forex costs

Puma, the German maker of sportswear and equipment, said Friday that its profits fell in the third quarter, hit by marketing expenses and foreign exchange effects.
Puma said in a statement that its net profit fell to 29 million euros ($36 million) in the period from July to September from 53 million euros a year earlier.
Underlying or operating profit was also down, falling to 46 million euros from 80 million euros, while sales increased by 3.7 percent to 843.4 million euros.
"In a good third quarter, Puma achieved sales that were slightly better than expected," said chief executive Bjorn Gulden.
Looking ahead, Puma said it would "continue to invest strongly in marketing and sports assets as well as start investing in IT infrastructure, while maintaining tight control on other operating expenditures."
On the basis of the results so far, Puma said it now expected a "low single-digit increase in net sales" for the full year, upgrading its previous forecast for stagnant sales.
Given the planned increase in marketing investments throughout the second half of the year, the company said it was sticking to its forecast for operating and net profit margins of 5.0 percent and 3.0 percent.