Business news : Puma's Revenues Slide in Q3

Puma's Q3 revenues slid 7.6 percent in the third quarter to £824.8 million ($1.14 bn) from £892.2 million, according to a revenue update from its parent, Kering. Puma’s sales for the quarter were down 0.8 percent on a comparable basis. The decline was due to lower footwear sales. Accessories and apparel were up 7 percent and 4 percent, respectively.

By country, Kering noted in its presentation with analysts that sales in North America, representing 20 percent of Puma's sales, grew 5 percent. In other regions, Western Europe (representing 34 percent of Puma's sales) was down 2 percent; Japan (8 percent), was down 6 percent; Asia Pacific (13 percent), slipped 1 percent; and Other Countries (25 percent) was also off 1 percent.

Kering noted that adverse currency impacts continued to weigh on sales performance, exacerbated by volatility in emerging market countries.

Kering said in its press release, “The Puma brand recorded improved retail sales (up 6 percent), driven by all of its directly operated distribution channels (stores, outlets, online sales).

Sales developed positively in North America, but remained under pressure in Western Europe. Sales of Apparel and Accessories grew over the quarter, while the Footwear category continued to be affected by challenging conditions in its main markets.

In the third quarter, Puma pressed ahead with the implementation of the brand’s Transformation Program, closing more underperforming stores, appointing a new creative director, introducing a new geographic organization, reducing the number of product references and optimizing the product development process.”

Sales at Kering's Sports & Lifestyle Division – including Puma as well as Cobra, Tretorn, Volcom and Electric – were down 7.6 percent to £896.2 million ($1.24 bn) from £969.7 million. Sales were down 0.9 percent on a comparable basis. Its Other Brands portion under the Sports & Lifestyle division had revenues of £71.4 million ($98.5 mm), down 7.9 percent from £77.5 million.

Kering noted that Volcom’s sales were up 2 percent, driven by strong sales of newly introduced footwear styles.

Kering's main business is its Luxury division, which includes Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Stella McCartney and several other high-end brands.

By press release


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