Puma reveals plans to “excite the market” after posting dip in sales
Puma has revealed it is to deploy a string of initiatives to “excite the market” after suffering a fall in sales and profit.
The German athletic sportswear brand today reported a hefty dip in sales, which dropped 7 per cent to €726m, and a 29 per cent fall in net earnings to €36m.
Sales in the EMEA region rose 0.3 per cent to €337m, with sales falling 0.5 per cent in the Americas and 2.1 per cent in Asia/Pacific.
The company’s footwear sales fell by 7.1 per cent as the sector struggled in mature markets, however the category was strengthened thanks to the “positive global reception” of the new evoPOWER football boot during the first quarter of the year.
Puma is hoping its recent brand repositioning will help drive sales during the year along with a new “unified” e-commerce site set to launch mid 2014 and “the biggest campaign for Puma ever” which launches globally in August 2014 featuring Usain Bolt and Mario Balotelli.
Bjørn Gulden, CEO, Puma said: “Puma’s currency adjusted sales and operating margin for the first quarter were in line with our expectations – yet negatively impacted by adverse currency affects. During the quarter, we continued to make progress towards our mission to become the Fastest Sports Brand in the world and achieved all our key project milestones in this pursuit.
“We know that the repositioning of Puma and the turnaround of the business will take time, but I am convinced that we are progressing well on all our key strategic priorities and that we have initiated the right projects to make 2014 the start of the turnaround.”
Puma said it will continue to invest strongly in marketing and sports assets throughout the coming year.
In January it announced a long-term partnership with Arsenal Football Club, which saw Puma ousting Nike as the official kit partner.