Kering Is Getting Rid Of Puma To Focus On Luxury

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PARIS — Last November 2017, DM Fashion Book reported that international luxury group Kering was set to sell German sportswear giant Puma for almost $7 billion (see it here).

Kering wants to focus on luxury. Yesterday Thursday (April 26), it was announced that Kering  won shareholders approval for the spin-off of the bulk of its shares in Puma.

“Ten years ago, PPR was a retail group that generated 17 percent of its sales in luxury
last year, luxury represented 70 percent of Kering sales,” said Jean-François Palus, group managing director, referring to Kering’s previous name, PPR.

“In 2018, luxury will represent 100 percent of our sales,” he concluded.

Speaking before an audience of shareholders that gathered for the annual meeting in an arched corridor of the group’s historic headquarters, Palus summed up the transition:

“In 10 years we have radically changed the nature of the group and we are prepared for the challenges of luxury in the future.”

Kering earlier this week defied expectations with a 36.5 percent sales rise over the first quarter, excluding the effect of currency fluctuations, spurred on by its star brand Gucci. The Italian fashion label has clocked five quarters in a row of growth exceeding 35 percent.

“You see, we are close to reaching our transformation into a pure luxury player, I would even say one of the most pure luxury players,” said chief executive officer François-Henri Pinault, shortly before the vote.

Following the transaction, the bulk of Kering’s Puma stake will be distributed to Kering shareholders, with the Pinault family’s private investment arm ArtĂ©mis holding a 29 percent stake in the sportswear company. Kering will retain a 16 percent stake and 55 percent will be free float, an amount that Puma chief executive officer BjĂžrn Gulden earlier this week said was a “healthy mix,” explaining that the larger float has attracted more interest from institutional investors.

Kering also owns Yves Saint Laurent, Gucci, Alexander McQueen, Balenciaga, Puma, Brioni, Christopher Kane and other brands

Photos Credit: Courtesy

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Donovan

Donovan is the CEO and Editor-In-Chief of www.dmfashionbook.com. For all general inquiries please email don@dmfashionbook.com Donovan has a BA in Journalism & Media Studies from the prestigious Rutgers University. He's currently studying entertainment and fashion law.