Nike Results 'Burdened the Sector,' But Puma Can Still Grow

Puma should see improved momentum in the second quarter and return to earnings growth, Warburg analyst Joerg Philipp Frey wrote in a research note. Furthermore, Nike's warning last week prompted a share drop in Puma and other peers. "Even though Nike's results have burdened the sector, we see no change to our assumption of sequential improvement in Puma's top-line momentum," the analyst said, adding that Puma should outgrow its U.S. rival.