German athletic shoe-maker Puma AG said yesterday it will
"plow millions of dollars" into a new U.S. market offensive to
revive its one-time popularity here, according to the N.Y. POST.
Paul Tharp writes that the sneaker had "all but disappeared" from
shelves here after its "grunge look" product "bombed" two years
ago. But Puma has announced a restructuring in which more stock
shares will be sold, raising about $421M by July. The company
declined to say whether former Puma-wearer Pele would be
recruited for advertising, or whether new sports celebrities
would be hired to promote the sneakers (N.Y. POST, 2/22).
REEBOK: This week's BUSINESS WEEK profiles Reebok and its
efforts to keep up with industry-leader Nike. Geoffrey Smith
notes with "development hobbled by massive management turnover,
high-level infighting, and strategic blunders, Reebok has
stumbled repeatedly" in its efforts to compete. Nike's overall
share of the $6.8B U.S. athletic shoe market rose from 31% to 37%
in '95, while Reebok slid to 20% over the same period. Analysts
expect Reebok's sales to grow 4% to $3.6B this year, while Nike's
sales are expected to jump 24% to $5.9B. Also examined are
Reebok Chair Paul Fireman and his management methods (BUSINESS
WEEK, 2/26 issue).
FILA: In a separate article, BUSINESS WEEK examines the
rising popularity of Fila. U.S. sales of Fila footwear have
jumped from $84M in '91 to approximately $500M last year, and
analysts expect '95 profits to rise 40% to $60M. Based on the
leadership of CEO Enrico Frachey and the signing of Grant Hill
and Jerry Stackhouse, Solomon Bros. analyst Kevin Tempestini
calls Fila the strongest up and coming brand in the industry"
(BUSINESS WEEK, 2/26 issue).
