(Reuters) -Puma shares fell by 16% as the market opened on Thursday after the German sportswear brand reported lower than expected fourth-quarter sales and a decline in annual profit. The weak results late on Wednesday came after rival Adidas reported strong sales and profitability,

The German sporting-goods company blamed higher interest expenses.

Puma SE shares plunged after the German sportswear company reported disappointing earnings and pushed back profitability targets in a painful contrast to cross-town rival Adidas AG.

Shares in Puma dropped 15% as the market opened on Thursday after the German sportswear brand reported lower than expected fourth-quarter sales and a decline in annual profit.

Puma lost more than a fifth of its market value on Thursday after the German sportswear brand reported lower than expected fourth-quarter sales and a drop in annual profit, raising questions about its ability to compete with bigger rivals Adidas and Nike.

Shares fell after the sporting-goods company posted net income below market expectations and said it was launching a new cost-saving program driven by higher expenses and sluggish sales growth.

Puma SE is launching a cost-efficiency program after the German sportswear company’s fourth-quarter earnings missed analyst estimates.

By Helen Reid (Reuters) -Puma shares sank 21% on Thursday after the German sportswear brand reported lower than expected fourth-quarter sales and a drop in annual profit, raising questions about its ability to compete against bigger rivals Adidas and Nike.