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The Paris based luxury conglomerate says it has no plans to sell Puma and that the strategy to put the sports brand brand back on track is paying off.
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