UPDATE 1-Puma's sales start seeing boost from marketing spend

viernes 24 de julio de 2015 03:37 GYT
 

* Currency headwinds continue to weigh on earnings

* Puma confirms full year outlook

* Shares rise as much as 3 percent (Recasts, adds CEO comment, background, shares)

FRANKFURT, July 24 (Reuters) - German sportswear company Puma reported better-than-expected sales for the second quarter as investments in new products and marketing started to pay off, helping to lift its shares as much as 3 percent.

Puma launched its biggest ever marketing campaign a year ago to gain back territory lost to Adidas and Nike , prominently featuring Olympic sprint champion Usain Bolt, who has been promoting a new springy-soled running shoe.

However, currency headwinds and marketing spending caused a second quarter net loss of 3.3 million euros ($3.6 million). Analysts polled by Reuters had forecast a net profit of 920.000 euros.

The sportswear industry sources most of its products from Asia in U.S. dollar contracts, but Puma makes a bigger portion of profits than its rivals in markets where currencies have tumbled against the greenback like Brazil, Argentina and Russia.

The loss came despite a 7.6 percent rise in currency adjusted quarterly sales to 772.7 million euros, which beat analysts forecasts.

Sales were driven by strong growth in the Americas, where Puma makes a third of its revenue, with a currency adjusted gain of 11.6 percent.   Continuación...