Puma warns of growth slowdown amid Kerring sale


Sportswear retailer Puma has warned that growth is likely to be slower throughout the coming year following healthy gains throughout 2017.

German brand said it now expected revenues for 2018 to increase by about 10 per cent, compared to last year’s 15.9 per cent.

Despite this, sales and profits are expected to rise, with analysts predicting sales will jump to €4.55 billion (£3.24 billion) after hitting €4.1 billion (£2.96 billion) a year prior.

Meanwhile, profits are poised to come between €305 million and €325 million – up significantly from 2017’s €245 million. This would represent an operating margin of 6.9 per cent.

The news comes after the luxury retail group Kerring, which owns Gucci and Stella McCartney, announced that it would sell its stake in Puma to focus on luxury brands.

Although Puma has seen a sharp turnaround in its fortunes after it nearly doubled operating profits last year, it accounted for just nine per cent of Kering’s profits in 2017 despite making up nearly a third of revenues.

“The transaction is expected to improve the liquidity of the Puma shares as a result of a significantly larger free float, which will make it easier for investors to invest in Puma directly,” Puma said.

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