Puma SE reported a fall in fourth quarter earnings amid volatile consumer and retailer demand.
The German sporting-goods company
PUM,
said it made 1.4 million euros ($1.5 million) in quarterly net profit, compared with EUR7.9 million in the last quarter of 2021, on sales that grew 24% to EUR2.2 billion.
Puma said its fourth-quarter gross profit margin fell by 420 basis points to 44% driven by an industry-wide increase in promotional activity due to high inventory levels.
It added that it would propose a dividend of EUR0.82 a share for 2022.
“The war in Ukraine, the threat of recession, high inflation and high interest rates are resulting in volatile retailer and consumer demand. In addition, we are seeing increased inventory levels across our industry, which contribute to a competitive market environment,” the company said.
For 2023 Puma said it expects to achieve currency-adjusted sales growth in the high single-digit percentage range, while its earnings before interest and taxes are expected in the EUR590 million to EUR670 million range.
Puma warned that it expects its gross margin will be under more pressure in the first half of 2023 than in the second half of the year.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
