Puma reports Q1 operating profit above expectations
Q1 Financial Results and Company Developments
Operating Profit Surpasses Estimates
April 30 (Reuters) - German sportswear maker Puma on Thursday reported a first-quarter operating profit that beat expectations, supported by inventory clearance and lower operating expenses.
EBIT Performance
Its earnings before interest and taxes (EBIT) rose 19.6% to 51.9 million euros ($60.53 million), compared with analysts' estimates of 43 million euros in a company-provided poll.
Inventory Management and Sales Outlook
Inventory Reduction
Inventories declined by 8.6% in reported terms to 1.9 billion, compared to 2.1 billion in the same period last year, the company said, due to reduced purchasing volumes, reflecting an expected lower sales base for the current year.
CEO Statement
"We have managed to reduce our inventory levels faster than planned, streamlined our product portfolio and addressed operational inefficiencies," CEO Arthur Hoeld said in a statement.
Leadership Changes
New CFO Appointment
Puma also announced it appointed Mark Langer as its chief financial officer, effective Friday, after the company and CFO Markus Neubrand mutually agreed that Neubrand will step down from his role on Thursday.
Additional Information
Currency Exchange Rate
($1 = 0.8574 euros)
Reporting Credits
(Reporting by Linda Pasquini, editing by Thomas Seythal)
