Puma Lowers Profit Forecast as Dollar’s Advance Weighs on Margin

HERZOGENAURACH, Germany — Puma SE cut its full-year profit forecast as the German sports-gear maker struggles to contend with the strengthening of the dollar against most major currencies.

The gross profit margin in 2015 will narrow by 1 to 1.5 percentage points, the company said in a statement Wednesday, revising its previous guidance for a “slight increase.”

Puma also forecast earnings before interest and tax of 80 million euros ($90 million) to 100 million euros, down from 128 million euros a year earlier. Its outlook for a “medium single- digit” increase in currency-adjusted sales is unchanged.

“The continued adverse developments of foreign-exchange rates during the recent months, particularly the strengthening of the U.S. dollar versus nearly all other currencies, had a significant negative impact on Puma’s gross profit margin and operating result in the first quarter,” the company said.

By Paul Jarvis; editor: Matthew Boyle.