×
154
Fashion Jobs
LIFESTYLE BRANDS
Area Manager-Projects Execution (Telangana &Amp; Andra Pradesh)-Hyderabad
Permanent · BENGALURU
LIFESTYLE BRANDS
Brand Financial Manager - Bangalore
Permanent · BENGALURU
LIFESTYLE BRANDS
Brand Training Manager, Planet Fashion - Bangalore
Permanent · BENGALURU
DA MILANO LEATHERS PRIVATE LIMITED
Assistant Manager- Payroll
Permanent · DELHI
UNIVERSAL MANAGEMENT CONSULTANTS
Head of Human Resource
Permanent · BENGALURU
UNIVERSAL MANAGEMENT CONSULTANTS
Head of Human Resource
Permanent · DELHI
KOELLE DESIGNS PRIVATE LIMITED
Assistant Manager Purchase
Permanent · JAIPUR
CAREERMARK 6
HR Manager
Permanent · HIRIYUR
LINEN DESIGN COMPANY PVT.LTD
Senior Corporate Sales Manager
Permanent · GURUGRAM
UNITED HR SOLUTIONS PVT LTD
Business Development
Permanent · AHMEDABAD
AND DESIGNS INDIA LTD.
Buyer & Planner
Permanent · NAVI MUMBAI
GREENFIELD RESOURCES PVT. LTD.
Business Development Executive
Permanent · AHMEDABAD
GENIUS CONSULTANTS LIMITED
Head of Department - Cost Accountant
Permanent · KOLKATA
LIFESTYLE BRANDS
Brand Training Manager, Peter England - Bangalore
Permanent · BENGALURU
PLACEMENT PANDITS CONSULTING
Operations Manager-Garment Industry
Permanent · GURUGRAM
LIFESTYLE BRANDS
Area Sales Manager-Patna
Permanent · BENGALURU
LIFESTYLE BRANDS
Group Manager - E-Commerce Product (B2B)
Permanent · BENGALURU
LIFESTYLE BRANDS
Manager - Product, Louis Philippe
Permanent · BENGALURU
PANTALOONS HO
Senior Executive - Marketing
Permanent · PUNE
LIFESTYLE BRANDS
Manager - Trade Channel, Finance
Permanent · BENGALURU
LIFESTYLE BRANDS
Assistant Manager- Design, Casuals- pe
Permanent · BENGALURU
LIFESTYLE BRANDS
Executive -Key Accounts (Mis),lp
Permanent · BENGALURU

Puma wrongfooted by 'ugly' sneaker trend

By
Reuters
Published
today Jul 26, 2018
Reading time
access_time 2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Puma had to scramble to respond to a sudden trend for oversized, chunky sneakers in the last few months, the chief executive said on Thursday, as the German sportswear maker dashed hopes for another hike to its earnings guidance.




Second-quarter results were dented by a stronger euro, a lacklustre performance for its sponsored national teams at the soccer World Cup, and the fact it spent heavily on basketball marketing ahead of the launch of products later in 2018.

During the quarter, Puma had to bring forward plans for chunkier styles like “Thunder” shoes due to demand from retailers as the fashion industry responded to the “ugly” trend for baggy clothing and 1990s sneakers with spongy soles.

“It’s been a tough quarter to try to react to it as we had to accelerate our sourcing very quickly...I would have wished we were faster,” Chief Executive Bjorn Gulden told reporters, adding he expects the trend to continue for the rest of 2018.

Under Gulden, Puma has revived its fortunes in recent years by spending heavily on top soccer teams and players and partnering with celebrities like singer Rihanna.

That, and upbeat recent earnings from market leader Nike , had raised analyst expectations that it might lift its 2018 outlook as it seeks to catch up on profitability with Nike and German rival Adidas,
However, Puma left its operating profit target at between 310 million euros and 330 million euros ($363 million to $387 million), even as it lifted its forecast for a currency-adjusted rise in sales to 12 to 14 percent, from 10 to 12 percent.

Its shares, which have risen more than a quarter this year, were down 5 percent at 0929 GMT.
Second-quarter sales rose a currency-adjusted 15 percent to 1.05 billion euros, slowing from a 21 percent jump in the first quarter. Operating profit came in at 58 million euros, slightly shy of analyst forecasts, according to Thomson Reuters Eikon.

Gulden said that Puma had incurred marketing costs, but no sales yet, as it prepares to relaunch basketball products for the first time in 20 years in late September or early October.

Puma announced last month that rap mogul Jay-Z will be its creative director of basketball, which it sees as critical to boosting menswear sales in the U.S. market, where deals with Rihanna and Selena Gomez have made it popular with women.

While national squads wearing Puma jerseys did not perform so well at the soccer World Cup, France’s Antoine Griezmann and Belgium’s Romelu Lukaku, who wear Puma shoes, were second and third top goal scorers at the tournament.

That should lift sales of football boots, Gulden said, with Puma’s soccer order book for the second half also helped by the launches of new shirts for sponsored clubs like AC Milan.

Gulden said his concerns had receded about possible U.S. tariffs on footwear produced in China, but he was now more concerned about trade tension with Turkey and still likely to look for suppliers that can source from several countries.

© Thomson Reuters 2020 All rights reserved.