Puma to close 90 stores

German sporting giant Puma German suffered a 45.8 million dollar loss in the fourth

quarter of 2012 and has recently announced that it will close 90 stores in China as part of its global cost-cutting measures.

“The age of high profit and growth rate in sportswear industry has gone that it’s difficult for sportswear companies to follow the developing model to largely open new stores,” said Zhang Qing, CEO of Key Solution Sporting Consulting.

Both foreign and Chinese-owned brands are suffering from this downturn and inventory build-up has become a problem.

Foreign and Chinese sportswear brands were both very optimistic about the Chinese market prior to the Beijing Olympic Games in 2008, with many brands expanding their presence. However, on reflection the market opportunities did not meet expectations for many.

In February Puma reported its fourth quarter 2012 consolidated sales rose by 11.7 percent in euro terms to 804,7 million euros.