Sports And Luxury Genes Are Hard To Match, Kering Sells Puma

Sports brand Germany

(Puma) the gene seems to have been out of sync with its French luxury group KeringSA (KER.PA Kai Yun group).

Recently, the industry has once again heard the news that Kai Yun Group intends to sell Puma.

It is reported that Puma will probably be sold, which is a new move in the recent series of rectification actions of Kai Yun group.

It is reported that this year's opening group has approached the potential acquirers.

In the industry's view,

The focus of the current development is to optimize the allocation of resources and financial statements in order to match the overall restructuring.

Reporters noted that due to poor performance, Kai Yun group announced in December 12th that its Gucci CEO PatriziodiMarco and creative director FridaGiannini will leave the brand in early 2015.

Kai Yun group's intention to sell Puma is one of its latest series of rectification measures.

Insiders said that as early as the beginning of this year, Kai Yun group began to engage with potential acquirers, including Qatar's sovereign fund and some Asian investors, but has not yet reached any definitive agreement on the acquisition.

Last month, it was reported that VF, a global garment maker with TheNorthFace, timberland, Vans and many other brands, is considering the incorporation of Puma, the German sports brand.

For this reason, some analysts pointed out that VF company is the most effective takeover, because Puma's position in sports and life fashion is just in line with VF's pursuit of outdoor lifestyle.

However, up to now, the aforementioned parties have not responded.

In addition, reporters learned from the sources close to Kai Yun group last year that the Group intends to consider selling Puma, but the matter was not yet materialized.

Public information shows that in 2007, Kai Yun Group acquired 86% stake in Puma.

Over the past few years, Kai Yun group has tried to reverse the Puma's sluggish market and its performance by innovating the sports shoes product line, strengthening marketing, repositioning functional equipment, and so on.

Although this autumn, Puma launched the "ForeverFaster" advertising series, with "flying man" Boulter and soccer star Balotelli as spokesmen, making its sales growth for the first time after seven consecutive quarters of decline.

But as of September 30, 2014, Puma's net profit was 28 million 900 thousand euros, down 45.2% from 52 million 700 thousand euros in the same period last year.

In the industry view, Puma's performance trend is far away from the "return to the right track", Kai Yun group "stick to" Puma is unwise choice, "even if the group does not want to sell, but investors are reluctant to continue to keep Puma."

Zhou Ting, President of the domestic luxury goods field and President of the Institute of wealth quality, told reporters that in the case of selling Puma, the group should always make such a plan, but it is hard to sell it to anyone.