Kering appoints Rothschild & Co to spin off Puma
According to a report in French business magazine Challenges, luxury titan Kering has appointed Rothschild & Co. bank to handle its potential spin off of hip athleisure brand Puma. A spokeswoman for Kering declined to comment. Puma has been a stand out performer this year, with Rihanna collaborations and more pushing its popularity amongst younger, cooler, fashionistas. This has had a marked impact on like-for-like sales, which were up 17% in the third quarter of the year, against 15.7% at the half-year point, and 10% last year.
Kering’s share price is up by 99% year to date
SOURCE: Yahoo Finance
Jean-Marc Duplaix, Kering’s chief financial officer, said that Puma’s spin off would let the parent company focus on the more traditional luxury sector: “I think that it has been very clear and I won't change what has been said directly by the CEO of the group, that Puma is a noncore asset, that the group is focusing more on luxury.”
“I think that Puma is on a very nice trajectory, and we will have the occasion to consider and to contemplate some options, but later and probably not short-term. So, let's work, first of all, still on the turnaround and let's deliver a very nice set of figures for 2017. That's the priority for us.”
Dominion holds Kering in its Global Trends Luxury Fund.
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