New puma boss has to fight
The restructuring of the world’s number three in the industry, on the other hand, is progressing rather slowly: due to additional costs, the group has surprisingly lowered its profit forecast for 2013.
At his first press conference as head of puma, bjorn gulden had to report some bad news on friday: due to one-time expenses of 130 million euros incurred for the fourth quarter, the group’s profit for the current year will no longer increase as planned, but will now be significantly lower than the 70 million euros achieved in the previous year.
Sales, on the other hand, are expected to continue to grow in the low to mid single-digit percentage range.
"In the future, we will pursue the goal of being the fastest sports brand in the world," said the group CEO, who has been in office since july, outlining the new strategy. Products that are added to the assortment at short notice should be available quickly from puma’s own stores.
Gulden admitted, however: "we know that our business is still difficult and is characterized by sales problems, distribution channels that need improvement, and a currently low level of brand popularity.". He nevertheless expressed his conviction that "puma will achieve the turnaround and return to its former strength.
The 48-year-old norwegian did not want to specify a time for the trend reversal. "Realistically, one has to assume a longer process."
Net profit in the third quarter increased from 12.2 million euros to 52.7 million euros. However, the company also had to digest substantial costs for the ongoing restructuring of the group in the previous year. Quarterly sales fell by almost nine percent to 813.1 million euros.
Gulden wants to spend significantly more money on marketing in the coming year. Puma’s sales of shoes fell by more than seven percent to 1.1 billion euros in the first nine months, adjusted for currency effects. The business continues to run better with accessories. In this segment, the adidas competitor generated sales of 426 million euros from january to september – 9.5 percent more than in the same period the previous year.
The borse, however, was skeptical in view of the forecast reduction. The stock, which has been relegated from the mdax to the sdax, lost just under 1.6 percent by the afternoon.
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