Puma finally sells more shoes again | RetailDetail

Puma finally sells more shoes again

Puma finally sells more shoes again

Despite averse exchange rates, Puma's turnover has grown in the past quarter mainly thanks to shoe sales, which have grown for the first time in seven quarters.

Lower profit because of higher marketing costs

The German sports item manufacturer saw its third quarter turnover reach 843 million euro, a 3.7 % growth (6.4 % if exchange rate fluctuations are ignored). Profit did not follow the same trajectory as it almost halved from 53 to 29 million euro.

 

The profit drop was the result of increased marketing efforts focused on its transformation on the back of its new baseline, "Forever Faster". The company signed, among others, the fastest man alive (Usain Bolt) and football's enfant terrible (Mario Balotelli) to promote its new direction. It also struck a deal with English football club, Arsenal, all deals which cost a lot of money.

 

It seems to be paying off though, as Puma has managed to increase its running and football shoes sales (+ 2 % to 374 million euro). Clothing also grew 11 % to 323 million euro, while accessories managed to sell 147 million euros' worth. Only golf-related sales have slumped, something the other German sports icon, Adidas, also realized this past quarter.

 

Full-year forecast slightly up

"We feel that things are moving in the right direction, but as we have said all along: We know that the repositioning of PUMA and the turnaround of the business will take time as we need to continue to build confidence in the marketplace", CEO Björn Gulden said.

 

The company is fully confident it will work out, because the board has raised its full-year forecast. It had previously stated it would remain level compared to 2013, but now it should be able to achieve a "low, single-digit growth".

Questions or comments? Please feel free to contact the editors


Carrefour Belgium launches personal shoppers with 90 minutes delivery

19/07/2018

In the intense struggle for the customers' favour, Carrefour Belgium has presented a new service - featuring personal shoppers, delivery within 90 minutes and an app that can be expanded into a market place.

Cultured meat in stores by 2021?

18/07/2018

Commercialization of laboratory cultured meat is coming closer. Pioneer Mosa Meat has raised 7.5 million euros for the construction of a factory that will bring an affordable product to the market within three years.

Aldi commits to renewable energy

17/07/2018

Aldi Nord has published an ambitious international climate policy: the retailer wants to reduce greenhouse gas emissions by 40% by 2021 and reveals some compelling figures in its second sustainability report.

Discounters' major opportunities for growth in Western Europe

16/07/2018

Despite the multitude of stores in most European markets, discounters plan to open up to ten million square metres of store surface in five years' time. Even in so-called saturated markets they still see a lot of chances for growth, LZ Retailytics says.

Contamination bites huge chunks of Greenyard's value

16/07/2018

Vegetable producer Greenyard is under attack after a listeria contamination in its Hungarian factory. The company says to have taken all necessary measures, but the share price plummets.

Starbucks dumps plastic straws worldwide

12/07/2018

American coffee company Starbucks will ban plastic straws in their stores starting from 2020. A small step for coffee enthusiasts, but a big step for the environment, as the coffee giant uses about a billion straws every year.