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.

‚ÄúTen years ago, PPR was a retail group that generated 17 percent of its sales in luxury‚Ķlast year, luxury represented 70 percent of¬†Kering¬†sales,‚ÄĚ said Jean-Fran√ßois Palus, group managing director, referring to Kering‚Äôs previous name, PPR.

‚ÄúIn 2018, luxury will represent 100 percent of our sales,‚ÄĚ 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:

‚ÄúIn 10 years¬†we have radically changed the nature of the group and we are prepared for the challenges of luxury in the future.‚ÄĚ

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.

‚ÄúYou see, we are close to reaching our transformation into a pure luxury player, I would even say one of the most pure luxury players,‚ÄĚ said chief executive officer Fran√ßois-Henri Pinault, shortly before the vote.

Following the transaction, the bulk of Kering‚Äôs¬†Puma¬†stake will be distributed to Kering shareholders, with the Pinault family‚Äôs private investment arm Art√©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 Bj√łrn Gulden earlier this week said was a ‚Äúhealthy mix,‚ÄĚ 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.