PPR is “determined to help Puma get a second wind,” and company Chair & CEO François-Henri Pinault “wants to increase revenue more than $1.4 billion by 2015 by building a portfolio of ‘sports and lifestyle’ brands around Puma," according to Andrew Roberts of BLOOMBERG BUSINESSWEEK. It is a “strategy similar to one he's used in luxury goods bearing his signature Gucci label and seven others.” Rather than “focusing on athletic gear targeted at serious sports enthusiasts," PPR sees a "broader universe of consumer goods and apparel that can evoke the sporting lifestyle without all the sweating.” Pinault said, "The sports and lifestyle segment shares common characteristics with the luxury segment, growing fast in the same regions of the world.” PPR has begun an “acquisition spree for brands that complement Puma.” The company earlier this month agreed to buy California-based skateboard brand Volcom for $607.5M. Pinault said that he is “seeking other small- to medium-sized purchases in categories where Puma has no presence, such as hiking, where there are marketing tie-in and expansion opportunities.” Pinault said that Puma, which also owns the Cobra Golf and Tretorn brands, will “spend more this year on product development and marketing and accelerate store expansion, particularly in China and India.” Pinault has “set an aggressive goal of lifting Puma sales by about 50 percent, to nearly $6 billion, by 2015.” Analysts said that “that won't be easy without another Pelé-class endorser and a slew of hot new products.” Puma sponsors sprinter Usain Bolt and F1 driver Sebastian Vettel, and Liberum Capital Analyst Simon Irwin said, “To be a sporting brand you need to be associated with big names, and in my view, they just don't have enough" (BLOOMBERG BUSINESS WEEK, 5/16 issue).
