Puma SE recently reported their second quarter net profits are down $34.3 million, or 29.2%, which isn't that surprising since first quarter profits were already down 12.8%, but they swear they knew this would happen.
Umm. So why not prevent it!?
The company blames the tough European market, and says decreased net profits are expected. However, Puma promises they will finish the year with a rise in the mid single digits thanks to its "transformative program."
This "program" will include streamlining their catalog and creating less products. They’ll also close underperforming shops and open new ones in wealthier, up-and-coming markets. Finally, they’ll get rid of the endorsements that aren’t bringing in any cash. All this will cost them about $121.1 million.
Puma will also have a new set of leaders moving forward! Michael Lammermann will become CEO as of the beginning of next year, and current COO, Klaus Bauer, will be stepping down, but no replacement has been named yet.
Only Adidas is bigger than Puma in Europe, so we're sure they'll be fine. Also, with Usain Bolt’s endorsement, there’s a good chance sales will pick up once the Olympics start!
[Image via WENN.]
Tags: adidas, klaus bauer, michael lammermann, olympics, puma, second quarter profit decrease, usain bolt