Puma'S Cost Cutting Center Shifted To Outdoor Sports Products

< p > Puma's earnings report showed that the company's consolidated sales increased by 8.7% in 2012, and its total value was slightly below 3 billion 300 million euros.

Because of the inventory clearance, Puma's gross profit margin dropped from 49.6% to 48.3%, especially when the a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > products dropped the most, and the gross margin decreased from 49.1% to 46.5%.

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< p > in the implementation of the cost reduction plan, the company closed down more than 90 unprofitable shops and reduced about 450 jobs.

Puma said it will continue to open new stores in profitable locations in 2013, mainly in emerging markets.

Puma expects to open 540 stores by the end of 2013, but it will decrease compared with the 590 new stores in 2012.

At the same time, the company is also cutting production lines that affect profitability, and plans to reduce about 30% by the end of 2015.

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Besides P, Puma has also suspended a number of non profitable cooperation agreements, withdrawing from the European Rugby market, and will stop the production of nautical products in 2013, focusing on outdoor sports products.

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< p > Francois-Henri Pinault, President of Puma parent company PPR, has publicly stated that when Puma is back on track, PPR will continue to build a portfolio of a href= "//www.sjfzxm.com/news/index_c.asp" and "life leisure brand" /a.

He believes that there are two sports segmentation market potential, one is extreme sports, and the other is outdoor sporting goods market.

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P > Puma CEO Franz Koch, in its financial statement, said the group's first goal is not to reach 4 billion euros, but to increase profit margins.

However, PPR group announced last year that Franz Koch will leave office at the end of March 2013.

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< p > compared with competitors Nike and Adidas, Puma's performance is not ideal, the scale of stores is not an order of magnitude, especially in the development of new products, far from Nike and Adidas.

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< p > Susquehanna Financial financial analyst said that although Puma has been trying to do the right thing, the company's internal business has been over dispersed, resulting in declining performance.

"Part of the reason why Puma's sales are facing bottlenecks is also due to the continuing downturn in the European market and increased challenges in the Chinese market."

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Compared with P, China's local sporting goods companies are in a worse position.

XTEP International said that in 2012, the total number of shops decreased.

In 2013, 100~200 stores are expected to be reduced, and the order volume has decreased by 15%~20% in the first half of this year.

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The company's annual profits will drop by about 40% compared with the end of December 2012, mainly due to the continuous challenging situation in China's sports a target= "_blank" href= "//www.sjfzxm.com/" > clothing /a > industry, because the industry inventory and retail discount continue to be at a high level of pressure, so that the industry will continue to be involved in fierce competition, resulting in overall sales reduction, gross margin pressure and sales costs rising.

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