Following months of speculation, François-Henri Pinault, CEO and Chairman, Kering, said he has no plans to dispose of Puma in the short-term despite difficulties with the sports brand performance in the past.

Kering acquired the controlling stake in Puma in 2007 (valued at €5.3 billion) as part of a strategy to complement its luxury portfolio with sports brands. After remaining stagnant for years, revenues started to grow slowly in 2015, when operating profit shrunk from €372 million in 2007 to €96.3 million.

Puma has been criticised adopting a strategy too focussed on fashion, distancing itself from the sport product lines.

According to Pinault, the brand is back on track. Sales were up 3.7% in the first-quarter of 2016. Exiting currency fluctuations, the brand achieved a 7.3% growth in the period. Sales reached €3.4 billion in 2015, a 14% increase, or 6.5% when stripping out the effect of currency fluctuations.

Source: The Financial Times