Puma: shares drop after cautious outlook for 2019
(CercleFinance.com) - German sports goods firm Puma struck a rather cautious note for 2019 on Thursday, pointing to a slowdown in growth this year, resulting in its shares felling over 7% in Frankfurt.
For full-year 2019, the company said it expects currency-adjusted sales growth of around 10%.
Most importantly, this is much lower that the currency-adjusted sales growth of 17.6% that the group reported for 2018, with double-digit growth in all regions and across all product segments.
In the fourth quarter, sales even increased by over 20% (currency adjusted), giving EBIT of 38 million euros, up from 30 million euros.
Puma also said it forecasts its gross margin to show a "slight" improvement compared to the 48.4% of 2018, and expects EBIT between 395 million euros and 415 million euros this year.
Used to more ambitious forecasts from the companies, investors were by no means impressed by these forecasts and sold the shares, with the stock tumbling 7.1% just over an hour from close.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
For full-year 2019, the company said it expects currency-adjusted sales growth of around 10%.
Most importantly, this is much lower that the currency-adjusted sales growth of 17.6% that the group reported for 2018, with double-digit growth in all regions and across all product segments.
In the fourth quarter, sales even increased by over 20% (currency adjusted), giving EBIT of 38 million euros, up from 30 million euros.
Puma also said it forecasts its gross margin to show a "slight" improvement compared to the 48.4% of 2018, and expects EBIT between 395 million euros and 415 million euros this year.
Used to more ambitious forecasts from the companies, investors were by no means impressed by these forecasts and sold the shares, with the stock tumbling 7.1% just over an hour from close.
Copyright (c) 2019 CercleFinance.com. All rights reserved.