PARIS — Puma is kicking off a soccer-drenched year by upping its earnings and sales forecasts.
Europe’s second-largest activewear maker said Friday that its operating profit would reach at least 350 million euros, or $418.9 million at current exchange, rather than the earlier forecast of 300 million to 330 million euros, or $359.1 million to $395 million. Sales for the year are expected to increase 30 percent to 2.3 billion euros, or $2.75 billion, boosted by strong orders from the U.S., Europe, the Middle East and Africa.
The company said buzz building in advance of the World Cup, which will start in Germany on June 9, as well as the acquisition of licensed markets, such as Puma’s purchase of its Canadian distributor ATA Inc. last week, would be instrumental in driving sales.
The sports and lifestyle company, based in Herzogenaurach, Germany, said profits for the fourth quarter advanced 14.8 percent to 44.1 million euros, or $52.4 million, on sales of 349.2 million euros, or $415.3 million. On a currency-neutral basis, sales were up 22 percent.
For the full year ended Dec. 31, profits increased 10.5 percent to 285.8 million euros, or $355.8 million, on sales of 1.77 billion euros, or $2.2 billion. Dollar figures are calculated at average exchange rates for the respective periods.
In a statement, Jochen Zeitz, Puma’s chief executive officer, predicted the firm would achieve record sales in 2006 and record earnings in 2007. The group also said it would double its dividend.
By region, fourth-quarter sales in the Americas, the lion’s share of them generated in the U.S., jumped 83.9 percent to 136.4 million euros, or $162.2 million. On a currency-adjusted basis, sales increased 66.6 percent. Sales in Europe, the Middle East and Africa advanced 6 percent to 161.2 million euros, or $191.7 million, and increased 9.5 percent to 51.6 million euros, or $61.4 million, in Asia and the Pacific Rim region.
Meanwhile, by segment, footwear rose 25.8 percent to 221 million euros, or $262.8 million, apparel increased 31.8 percent to 101 million euros, or $120.1 million, while accessories advanced 28.9 percent to 27 million euros, or $32.1 million.