Puma lowers Kering profits

France
Published:  14 November, 2013

French luxury and retail group Kering warned on November 13 that its consolidated net income for fiscal 2013 "will be down very significantly" compared with the prior year, reflecting the impact of one-time charges related to the company's sporting brand Puma AG as well as costs related to the planned sale of its mail-order business La Redoute.

Kering noted that the one-off charges related to Puma are primarily non-cash. Kering had recorded net income, group share, of 1.05 billion, or 8.31 per share, for fiscal 2012.

In early November, Puma said it currently expects full-year 2013 net earnings to be positive, but significantly below last year, citing impairment charges of 130 million in the fourth quarter. Previously, the sporting brand said it expected an increase in net earnings for fiscal 2013 compared with the prior year.

Puma added that most of the special items will be impairments charges related to non-current assets. The company further said new initiatives include closure of the product development center in Vietnam, and the planned transfer of its international product teams from London to Herzogenaurach.

Kering, formerly known as PPR, also said that while it has examined the offers that it received so far for La Redoute, it will continue to evaluate the different possible options and announce its conclusions soon.

Kering, owner of the Gucci, Puma and Bottega Veneta brands, has long been exploring plans to sell both Fnac and mail-order business Redcats, which includes brands like La Redoute and Golf Warehouse.

The company is seeking to sell La Redoute as part of its efforts to increase focus on its luxury and sports brands. However, the potential sale of La Redoute and any jobs cuts at the unit by a future owner has been met with stiff resistance in France, which is grappling with high unemployment.

Source: RTT News

comments powered by Disqus