July 31, 2019 / 8:45 AM / 8 months ago

Puma braces for U.S.-China tariffs with extra inventory

FILE PHOTO: The logo of Puma sportswear company is seen at its store at Tbilisi Mall in Tbilisi, Georgia, April 22, 2016. REUTERS/David Mdzinarishvili/File Photo

BERLIN (Reuters) - German sportswear group Puma (PUMG.DE) is carrying up to 7% extra inventory as it prepares for the possible imposition of U.S. tariffs on goods produced in China, and expects to have to raise prices, Chief Executive Bjorn Gulden said on Wednesday.

In anticipation of U.S. tariffs, Puma has been moving production out of China to countries like Vietnam, cutting the proportion of products produced in China for the U.S. market to under 25% from more than 50% five years ago.

“Should the duties come, I am convinced prices will go up because you cannot move all production out of China,” Gulden told a conference call for journalists.

Reporting by Emma Thomasson; Editing by Michelle Martin

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