Puma AG, Europe’s second largest sporting goods maker, reported a 16% drop in second-quarter profit on increased discounting and warned of trailing sales in the second half of the year.

Net income fell to €38.5 million, or €2.55 a share, from €45.6 million, or €2.98 a share, a year ago.

Adjusted for currency swings, consolidated sales were flat over the prior year, but increased in euro terms 4.1% to €600.3 million. Footwear fell 2.0% to €330.0 million, while apparel decreased 5.7% to €203.8 million. Accessories improved by 41.2% to €66.4 million, mainly due to first time consolidations.

By division, sales in the EMEA region reached €288.3 million in the second quarter, or a currency-adjusted decrease of 1.4%. Year-to-date sales fell 2.3% to €654.4 million (50.4% of consolidated sales).

Second-quarter sales in the Americas rose 6.9% to €168.6 million. First-half sales climbed 9.2% to €346.7 million (26.7% of consolidated sales). In the US market alone, sales rose 4.8% to $ 132.7 million in the second quarter and by 4.1% to $271.4 million after six months.

Meanwhile, sales in the Asia/Pacific region fell 4.5% to €143.4 million and by 2.8% after six months to €296.7 million (22.9% of consolidated sales).

“Despite an ongoing challenging market environment and the global economic recession, PUMA achieved a solid performance in the first half of 2009,” said Jochen Zeitz, CEO. “The restructuring and reengineering program has already shown first effects and we will continue to strictly proceed while focusing on efficient measures to strengthen the brand and its products in the coming quarters.”