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Zalando & Skechers make up for Puma losses

By FashionUnited

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Puma shares sank to their lowest price in almost

two years on Wednesday, after Europe's second largest sporting-goods maker reported substantial steep drops in profit and sales. Its stock fell as much as 3.8 percent to 208.75 euros a share, its lowest since October 2011.

Profits at the Germany-based company dropped to 31 million euros, from 47 million euros a year earlier, with sales also at a decline. "Southern Europe and the Far East remain challenging" said the company that still expects an increase in full-year net income compared to 2012.

After Puma's release, all eyes are on Kering – former PPR, the French luxury group that owns 83 percent of Puma, which will report results on Thursday. The topnotch group has just appointed Alexandre de Brettes as chief executive of recently acquired London fashion brand Christopher Kane. De Brettes, who will assume the role from Sept. 1, "is the first major hire since Kering acquired the Christopher Kane company in January and forms part of the company's global development strategy," Kering said in a statement.

Kering, formerly known as PPR SA, in January bought 51 percent of Christopher Kane, highlighting the group's established strategy of investing in smaller high-end brands such as Stella McCartney and Alexander McQueen, and nurturing their growth.

On the back of the news, Kering stock traded up on Wednesday, anticipating positive results for the luxury goods group.

Elsewhere, German online fashion retailer Zalando has reported a 74 percent sales increase to 372 million euro for its first quarter 2013, despite hostile weather which led to a late start to the summer season.

“We are very pleased with these results – Zalando is a sustainable company and extremely well positioned internationally,” said Rubin Ritter, Managing Director at Zalando. “The basis of our growth is the success in our established markets, whilst at the same time we are also seeing positive developments in the countries we have launched in recently.”

In 2012, Zalando reported 1.15 billion euro in revenue, doubling its sales from the previous year, thanks to the company’s investment in advertising, as explained by the company earlier this week. Zalando operates in 14 countries, after entering the Swedish, Belgian, Danish, Finnish, Spanish, Polish and Norwegian markets in 2012.

Finally, in USA, Skechers USA Inc. Wednesday reported second-quarter net income of 7 million dollars or 0.14 dollars per share, compared with net loss of 1.8 million dollars or 0.04 dollars per share last year. Revenues for the quarter were up 11 percent at 428 million dollars, compared with 384 million dollars in the prior year. Sales growth was led by double-digit gains in international wholesale and company-owned retail businesses as well as single-digit improvement in domestic wholesale division, the company said.

In comparison, analysts polled by Thomson Reuters estimated earnings of 0.03 dollars per share on revenues of 427.62 million dollars for the quarter.
FashionUnited