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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Retail & consumer

Puma shares collapse after sales undershoot market targets

Shares in sporting wear group Puma crashed more than 20% as the German clothing firm saw annual profits fall while undershooting the sales growth target in the market by some distance.

Puma shares were down 22% near the close of trading in Frankfurt and on course for their worst-ever day as a listed entity.

It was harsh punishment for results that saw fourth-quarter sales rise by 9.8% and annual net profits drop to €282 million from €305 million, but sales had been expected to rise by 12%.

Analysts had little sympathy especially as Puma’s update followed better-than-expected results from archrival Adidas, which is still recovering from its disastrous partnership with Kayne West.

"If Puma is not really taking market share, at a time when its biggest competitor is weak, this will make investors question what the competitive advantage of Puma is," said Deutsche Bank Research analyst Adam Cochrane.

Shares in Puma tumbled €9.31 to €32.48.

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