Moderate growth on sales of Puma

Puma accounts for 93% of the gropup  revenue in terms of sportswear & lifestyle industry, while the remaining 7% comes from Volcom, which showed disappointing sales, due to the difficulties of its retailers in the market for action sports in the US. Puma presented good behavior in traditional markets (Europe and the USA), which surpassed the 10% of growth while in Japan there was a 3% contraction with China and the rest of Asia Pacific (excluding Japan) shows an interesting growth of 13%.

Great visibility in Olympic Games and Eurocup.
The Olympics of Rio, and the Eurocup at France  were when  the company achieved visibility with Usain Bolt’s contracts and those of footballers like Griezmann, Buffon or Rui Patricio  as well as the publicity campaign with Rihanna (Fenty x Puma) have been the key points of the promotion of the brand. However, sales growth has not exceeded the Kering Group average, whose luxury goods section grew by 11% to EUR 2,15 million, notably Gucci and YSL brands.

Far from the Big Two.
Comparing  to a 10-year sales trajectory with its competitors Nike and Adidas, we see a much more moderate growth in the case of Puma since Nike has achieved since 2006 100% growth and Adidas 69% while Puma was relegated to the third brand wiith a low growth of 23% in the period. In addition has appeared a new competitor of entity such as Under Armour, which in the third quarter has reached 1.25 million euros with a growth of 22% over the same period of 2015.

Both are far from the two industry giants Nike and Adidas.
The giants of the sector turnover wer in  Nike case more than 27 billion euros in 2015 while Adidas achieved sales of 17 billion. The central figure in Under Armor’s marketing is Stephen Curry, the emerging NBA star while Puma is Usain Bolt as well as the soccer players mentioned above together with  the Spanish players Nolito and Fabregas, for example. 

As stated by François-Henri Pinault, President and CEO of Kering: «Our excellent sales in the third quarter underscore the relevance of the strategy and the effectiveness of its execution, in a complex environment. We have managed to increase the pace of revenue growth and continue to gain market share. Thanks to the creativity of our brands and the excellent experience they offer to our customers, we have achieved double-digit increases in all geographic regions excluding Japan. Gucci and Yves Saint Laurent performed remarkably Puma confirmed its strong growth trajectory. We have laid the foundations for sustainable growth, and we have great confidence in the figures at the end of this year. «

As far as Puma is concerned, it would be desirable that this remarkable advertising effort made in the big events of 2016 should be reflected in a greater increase in sales. We will see what the end-of-year figures tell us.

Disclosure: The Luxonomist is not responsible for the views expressed in the article. The text has been written freely expressing their own ideas, without receiving any compensation. The author has no business relationship with any of the companies whose shares are listed in this article.