On this blog, I often mention adidas Nike and Puma as the 3 major powerhouses in football. PUMA, in my opinion has always been a key player in the sport although not playing with the same financials at its disposals. With assets such as Italy or Dortmund, and from next season onwards Arsenal, PUMA has a very interesting card to play against adidas and Nike.
However, PUMA recorded a 70% net profit fall last year, which forced it to cut its dividend by three quarters, discontinue products and end some sponsorship deals.
Newly appointed CEO Björn Gulden revealed that Puma will also close a factory in Vietnam and will bring product staff from London to its headquarters in German town Herzogenaurach.
The overhaul will cost €130 million in the fourth quarter, meaning 2013 profit will fall far below 2012’s €70 million. The group had previously expected a rise in 2013 net earnings, according to Reuters.
Gulden said: “We have to be a sports brand but that also has a clear connection to lifestyle. Puma has a great history, fantastic logos, great assets and talented people. We will make the cat shine again.”
PUMA has all assets to keep on being a major player in football. Keeping a connection to lifestyle is key to maintain the company’s global positioning. It will be interesting to see what the cat will come up with in terms of marketing activations. I will for sure keep you posted!