(Reuters) – German sportswear maker Puma on Tuesday said it is still set to reach its full-year outlook despite an 8.3% drop in its third-quarter core earnings.
It still expects strong improvement in profitability in the fourth quarter helped by lower marketing, sourcing and freight costs, it said in a statement.
“The recent conflict in the Middle East, the war in Ukraine, persistent inflation and the risk of recession are weighing on consumer sentiment, resulting in volatile demand in the retail sector,” it said.
Peer Nike and Zara owner Inditex flagged negative currency exchange effects in September. Puma said it is also facing the impact of a stronger euro against the dollar year on year amid weakening demand in North America and a slower-than-expected recovery in China.
It reported an operating profit of 236.3 million euros ($252.3 million) for the quarter, down from 257.7 million a year earlier.
The company confirmed its target for an annual operating profit of between 590 million and 670 million euros.
($1 = 0.9366 euros)
(Reporting by Linda Pasquini and Ozan Ergenay in Gdansk, Helen Reid in London; Editing by Kirsten Donovan)
