Puma Cuts Forecast FY Earnings; Adidas Up

Puma Cuts Forecast FY Earnings; Adidas Up Puma, Europe’s 2nd-largest sporting-goods maker, lowered its full-year profit forecast, saying it will book one-time charges of about €130 million this quarter. The costs relate to the closing of a product development center in Vietnam and the transfer of international product teams to Herzogenaurach, Germany where the company is based, from London, Puma said in a statement Earnings for the year will be positive but significantly below those of 2012, said Puma, Previously, rival Adidas forecasted rising profits. Puma, which is closing stores, eliminating jobs and cutting product ranges to combat declining footwear sales, also reported Q3 earnings that missed estimates. Puma is still in a difficult transformation process. The shares are being supported by speculation that controlling shareholder Kering may seek a full takeover Q3 earnings before interest, tax and special items fell to € 80 million from €99 million a year earlier, trailing estimates of about € 81.5 million. A 1.4% decline in currency adjusted sales is in line with full-year guidance Currently Kering owns about 84% of Puma. The French company has been buying Puma shares bit by bit when they were available on the market Adidas reported a bigger gain in Q3 profitability than analysts had estimated and said the build-up to the 2014 World Cup in Brazil will start boosting revenue this quarter. Read more: and http://www.bloomberg.com/news/2013-11-08/puma-cuts-full-year-earnings-forecast-on-impairment-charges-1-.html