1254 GMT - Puma disappointed with a profit warning and lower mid-term targets 24 hours after Adidas's preliminary results highlighted a strong earnings beat, Stifel analysts say in a research note. Contrary to competitors Nike and Adidas, the German sporting-goods company's profitability doesn't necessarily benefit from a distribution mix geared to direct-to-consumer, the brokerage says. However, it says the lack of operating leverage in 2024's fourth quarter was astounding despite a pickup in sales and gross margin expansion. Furthermore, despite the launch of a cost-optimization plan, Puma's 2027 EBIT margin guidance of 8.5% comes short of consensus expectations, it adds. (maitane.sardon@wsj.com)
(END) Dow Jones Newswires
January 23, 2025 07:54 ET (12:54 GMT)
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