Sportswear Company Puma Announces Closure Of 90 Unprofitable Outlets Worldwide
Sportswear company Puma announced that "it will close around 90 unprofitable outlets globally," according to WANT CHINA TIMES. After seeing its profit "decline by 85% in the third quarter" of '12, the company reported a loss of $56.8M in the final quarter. According to its financial statement, the group's consolidated revenue rose 8.7%, "below expectations," in '12. However, its net profit dropped from 49.6% in '11 to 48.3% in '12. Instead of raising its annual revenue expectation to above €4B ($5.2B), "now the group's top priority is to generate profit rapidly." Market analyst Zhang Qing said that Puma's troubles "partly stem from weak demand in Europe and partially from its misplaced business strategy in the Chinese market." He added that the company has "failed to unveil any trend-setting products" (WANT CHINA TIMES, 3/6).