Puma profit falls on cost of developing new products
DÜSSELDORF: Puma, the second- largest maker of sporting goods in Europe, said Monday that fourth- quarter profit declined 26 percent as the company spent more money to design new shoes and clothes.
Net income fell to €32.8 million, or $43 million, from €44.1 million a year earlier, the company said.
That missed the €34.5 million median estimate of seven analysts surveyed by Bloomberg. Revenue rose 38 percent to €480.6 million, also short of the median estimate of €492 million.
Costs increased by almost half in the period and profitability waned as Puma raised investment in its brand. The company plans to introduce goods in 2007, like a range inspired by tennis players of the 1970s, to compete with larger rivals Adidas and Nike in a year without high-profile sporting events like the soccer World Cup.
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