Puma warns on FX volatily
German sportswear firm Puma has predicted that foreign exchange fluctuations, particularly the strong US dollar, will weigh on earnings this year after suffering a surprise loss in the last three months of 2014.
The impact of the dollar's growing strength was evident in the fourth quarter when the company reported a net loss of €4.6m, compared to forecasts for a net profit of €7m.
That loss came despite a 7.5pc rise in quarterly sales to €750.8m beating average analyst forecast for €739m.
Revenue growth was particularly strong in the Americas, where Puma makes a third of its sales, up a currency adjusted 15pc.
Puma shares were down 0.75pc in early trading yesterday. The company is majority owned by French luxury goods group Kering. Puma ranks third in the sportswear market behind Nike and Adidas.