(Reuters) -German sportswear Puma said on Tuesday it expects currency-adjusted sales growth to be in a low single-digit percentage, below the previous year’s level, due to a soft performance in the U.S. and China.
The company expects to incur one-time costs of up to 75 million euros ($81.96 million) in 2025 due to its cost efficiency programme.
Puma expects adjusted earnings before interest and taxes (EBIT) for the year to be in the range of 520 million euros to 600 million euros, while it sees EBIT growth to range between 445 million euros and 525 million euros for the same period, including the one-time cost of its efficiency initiative.
Puma’s weak quarterly sales and annual profit announced in January have fed into concerns about its ability to compete with bigger rivals Adidas and Nike and fend off newer, fast-growing brands such as On Running and Hoka.
The sportswear brand launched a cost-cutting programme earlier this year after its annual net profit fell below the prior year’s level, missing expectations.
($1 = 0.9151 euros)
(Reporting by Gursimran Kaur in Bengaluru; Editing by Alan Barona)
Comments