Puma cuts full-year targets after 'challenging' Q1

German sportswear giant Puma said Tuesday it is revising downwards its full-year targets after business was hit by the "challenging" environment in the first three months of this year. "In view of our first-quarter results and of continuing economic uncertainty in certain key markets, management now expects a low- to mid-single-digit decline in full-year sales," Puma said in a statement. "This forecast represents a slight downward revision compared to the guidance provided with the 2012 full-year results." In February, Puma had said it was pencilling in stable sales this year. In terms of profit, Puma said it was "also unlikely to meet its original guidance of low- to mid-single-digit growth" in underlying or operating profit. But the group said it still expected net profit "to increase compared to the 2012 level." In February, Puma had said it expected a "significant" improvement in full-year net profit. In the first three months, Puma recorded a 2.3-percent decline in first-quarter sales to 782 million euros ($1 billion) "as eurozone retail spending continued to weaken and sales in Asia were affected by an unusually long winter," it said. Operating profit slumped by 22.5 percent to 79 million euros in the period from January to March and net profit was down by 32 percent at 50 million euros. Chief financial officer Michael Laemmermann said that "in the current challenging business climate, especially in Europe and in Asia, we are continuing to implement our cost reduction programme aimed at improving efficiencies and our cost base. This will increase Puma's profitability in the long-term."