Excessive Dispersion Of Puma Business Performance Decline

Christopher Svezia, Susquehanna Financial financial analyst at the US investment organization, said: Despite the fact that Puma has been trying to do the right thing, its performance has been declining due to the excessive decentralization of its internal businesses.

Over a period of time,

It is necessary to clarify the internal problems of these companies so as to continue the recovery and growth of profits.

Excessive dispersion of Puma business performance decline

Christopher Svezia added, "Puma

Bottlenecks are also partly due to the continuing downturn in the European market and increased challenges in the Chinese market. "

Barclays luxury research analyst Julian Easthope believes that the "counterattack" sales plan announced by Puma previously to 400 million euros in 2015 will be retrogressive.

It is reported that Puma has invested a lot of money in product development recently because of the overall innovation in the sporting goods industry.

Puma's newly appointed chairman, Jean FranciscoPalus (also managing director of PPR SA of the group), will be responsible for the significant adjustment of the company and will focus on improving profitability.

"At present, the company is developing an ambitious and executable budget plan," Easthope revealed.

As part of the overall Puma pformation, Puma began to optimize the retailer system, shut down 80 profitable shops in the mature market, and selectively increase the number of profitable shops in emerging markets.

By December 2013, the number of Puma stores worldwide will be reduced from 590 to 540.

At the same time, the company is cutting production lines that affect profitability, and plans to reduce about 3 by the end of 2015.

In the three quarter of September 30th, in the third quarter of this year, in the background of fixed expenditure of 80 million euros ($103 million 700 thousand), Puma profits fell 85.1% to 12 million 200 thousand euros (at the current exchange rate of 15 million 300 thousand US dollars).

In the case of monetary neutrality, the overall revenue of the company increased by 0.5%.

Sales growth of 5.6%; accessories sales in a downturn, a sudden rise, up 20.1%; footwear sales supported by the growing demand for light footwear, up 2.5%, however, the sluggish sales of fitness shoes on the mature market affected the sales performance of running shoes.

This month, Jochen Zeitz, who was chairman of the board of directors of the Puma board, resigned from November 30th.

But he remains in the position of chairman of the Sustainable Development Committee of Puma parent company PPR group.