Kering Group Will Sell Sports Brand Puma?

It is reported that the famous German sports brand Puma (Puma) is likely to be sold, which will be a new move in the recent series of drastic rectification actions by the owner of Puma, Kering (Kai Yun), a luxury group in France.

Kering has just driven the creative director and CEO of the flagship luxury brand Gucci.

Insiders said that as early as this year, Kering had begun to deal with potential acquirers about the sale of Puma, including Qatar's sovereign wealth fund and some Asian investors.

However, no definitive agreement has been reached yet.

Puma currently has a market value of about 2 billion 500 million euros.

Francois-Henri Pinault, chairman of the board of directors of Kering in April this year, has said that its sports and leisure products department will no longer expand before the Puma brand wins the battle.

As a sports brand, Puma's competitors Adidas and Nike are much larger in scale, and their R & D and marketing investment are far from Puma.

The gross profit margin of sportswear is much lower than that of luxury goods, and sports and luxury goods belong to the same company, which has dragged down the overall valuation of Kering.

According to the statistics of luxury stocks issued by reporters at the end of November, Kering

17.5 times, eighteenth of the 23 luxury companies tracked by reporters are eighteenth times lower than the rival LVMH group and 20.4 times the Richemont group.

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In the past five years, the acquisition of Puma 86% has been trying to reverse the decline of Puma, innovate the product line of sports shoes, strengthen marketing and relocate to functional equipment, but it has never been able to achieve obvious results.

Puma's huge sponsorship fee for the Premier League football team has also dragged down its profitability. The full year profit in 2014 is expected to be less than half that of 10 years ago.

Puma launched the "Forever Faster" this autumn.

In the wake of the seven consecutive quarterly decline in sales of Puma, Boulter, the football player Balotelli, was the first to witness growth.