Puma ups prices in Japan as weak yen hits profit

(Reuters) - German sportswear maker Puma said it was increasing prices in Japan, one of its biggest markets, joining other brands such as Apple Inc in trying to offset the effects of a weakening yen on profits.

The euro has strengthened around 14 percent against the yen so far this year, as the Japanese central bank embarked on an agressive loosening of monetary policy to boost the economy.

Apple last week raised the price of iPads by up to 13,000 yen ($130) at its local stores. Other companies ranging from Tiffany & Co to Volkswagen also raised prices.

Puma, majority owned by French luxury goods group PPR, last month scrapped a forecast to grow operating profit (EBIT) before special items by a low to mid-single digit percentage in 2013 owing to weak first-quarter results in Europe and Japan.

Japan is Puma's biggest market behind the United States, accounting for just over 10 percent of sales, analysts estimate. Business there also suffered due to harsh winter weather at the start of the year, Puma said when it published its results.

"Puma will be raising prices in Japan to compensate for the weak yen," a spokesman said on Monday, declining to provide any more details for competitive reasons.

Local rival Adidas said while it was monitoring the situation closely it had no plans to increase prices in Japan.