Puma: Group Profit Fell 85.1% In The Third Quarter Of 2012.

The continued downturn in the market and the challenges of the Chinese market have greatly reduced the profits of Puma, the third largest sporting goods company in the world (Puma).

Puma group recently issued a statement that due to some special factors, the third quarter of 2012, the group profit fell 85.1% to 12 million 200 thousand euros (about 15 million 300 thousand U.S. dollars), operating profit from 118 million 600 thousand euros to 19 million 600 thousand euros.

Puma chooses to do subtraction.

Despite poor results this quarter, the reporter noted that Puma's performance in 2011 was noteworthy.

Public information shows that in 2011, Puma's global sales grew by 11% over the same period last year, the first time it exceeded 3 billion euro mark, and the profit of the company increased 14% to 230 million euros compared with the same period last year.

Sales of shoes, knitwear and souvenirs are on the rise.

At that time, Puma revealed that in 2012, the company was prepared to make full use of the Olympic and European Cup soccer opportunities to further expand its sales performance and strive for sales of 4 billion euros in 2015.

For this year's embarrassing performance, Puma group CEOFranzKoch has said, "we are already taking measures to ensure the stability and growth of earnings.

At present, we are adjusting our business models to reduce operational complexity, increase efficiency and reduce costs.

It is worth noting that in the important stalls of group rectification, 22 years after Puma brand, JochenZeitz, which helped the brand create 3 billion euros last year, announced that it would resign as chairman of the brand board last month.

And the burden of Puma's reform has fallen on the shoulders of the newly appointed chairman of the group, Jean FranciscoPalus.

For the specific rectification plan, Puma said it will begin to optimize the retailer system, close 80 profitable shops in the mature market, and selectively increase the number of profitable potential shops in emerging markets.

It is understood that by December 2013, the number of Puma's global stores 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 30% by the end of 2015.

In this regard, CIC light industry researcher Zhu Qinghua told reporters that Puma's series of reforms is a sensible move to comply with the market.

On the one hand, closing down some profitable shops in mature markets can save costs and minimize the loss of enterprises. On the other hand, increasing the number of profitable shops in emerging markets can bring new profit sources to them.

Sports industry dilemma

As a matter of fact, Puma is not the only company with a good report card.

In recent two years, famous sports brands such as Nike, Lining and PEAK have been trapped in the world's grim economic situation, rising costs, increasing inventory and many other unfavorable factors.

In the middle of June this year, the mainland

Lining Sports Products Co., Ltd. issued a performance warning that the annual order of the larger decline, is expected to be the first half of this year and annual profits will drop sharply.

Subsequently, PEAK sports also issued a profit warning, saying that as of the end of June this year and the end of December, the year-on-year net profit will decrease significantly, which is mainly due to the extensive inventory adjustment and weak economic conditions this year, which has a negative impact on the demand for sports goods in the group. 6.

Not only did domestic sporting goods business experience unprecedented operational pressure, but the international line brands also had a hard time.

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Nike, the world's largest sports product maker, released its first quarter financial results in fiscal year 2013, which has fallen 12% to 567 million US dollars in the same quarter of August 31st as a result of operating indirect costs.

It is worth noting that the first quarter of Nike's Chinese orders fell by 5%, compared with the 27% growth in the same period last year, the decline is very obvious.

In this regard, Zhu Qinghua, a consultant at China investment bank, said that Nike and Adidas were the two most popular sports brands of domestic consumers. Adidas's performance in the depressed environment of sporting goods increased, while Nike declined slightly.

Anta, Lining and other domestic sports brand positioning in the middle and low end, the market space is larger, at present, influenced by high inventory, the situation is not optimistic.

"Because there is no obvious turning point in China's macro economy, the purchasing power level of consumers has not been greatly improved. At present, China's sporting goods market is still lingering at the bottom of the valley, and its growth rate is very slow.

It has become the top priority of the sporting goods market, and the major sporting goods brands have taken relevant measures to deal with it, but the effect is not outstanding.

Zhu Qinghua explained.