By
Reuters
Published
Nov 8, 2013
Reading time
2 minutes
Download
Download the article
Print
Text size

New Puma CEO seeks to return to group's sporting roots

By
Reuters
Published
Nov 8, 2013

HERZOGENAURACH, Germany - Germany's Puma (PUMG.DE) will go back to its sporting roots in a bid to restore growth to the struggling brand, its chief executive said, after write-downs forced the group to cut its 2013 profit forecast.

Puma, 84 percent-owned by French luxury goods group Kering (PRTP.PA), said on Friday it would launch a campaign in the third quarter of 2014 under the slogan "Forever Faster", reflecting an aim to be faster with innovative performance products.


Photo: Reuters


Over the last two decades, Puma has focused on fashion over sport. But with fickle fashion consumers abandoning its brand and profits crashing 70 percent last year, Puma now wants to go back to its roots in football and athletics, with the hope that technical soccer, running and team sports products will provide a more stable business.

Norwegian Bjoern Gulden, brought in by Kering in July from jewellery brand Pandora (PNDORA.CO), said in his first public comments since taking the helm at Puma that there was no denying the company was in a difficult position and the brand was not very desirable at the minute.

"We have to be a sports brand but that also has a clear connection to lifestyle," he said at an event at the group's headquarters. "Puma has a great history, fantastic logos, great assets and talented people."

Gulden, a former professional footballer who worked for Puma's crosstown rival Adidas in the 1990s, said the turnaround would take some time. "We will make 'the cat' shine again," he said in a statement, referring to the group's nickname and logo.

As a first move, he said the group would be closing a development centre in Vietnam and bringing product staff from London to group headquarters in the small German town of Herzogenaurach.

These measures will cost 130 million euros in the fourth quarter, meaning 2013 profit will fall far below 2012's 70 million euros. The group had previously expected a rise in 2013 net earnings.

Puma said operating earnings before special items came in at 80 million euros for the third quarter, against the average in a Reuters poll for 81.6 million euros.

($1 = 0.7472 euros)

(Reporting by Victoria Bryan and Joern Poltz; Editing Mark Potter)

© Thomson Reuters 2024 All rights reserved.