BLOOMBERG: Is it time for Puma to sell? At least one analyst thinks so.
BLOOMBERG: Is it time for Puma to sell? At least one analyst thinks so.
Puma’s operating margin has narrowed by more than 10 percentage points in the past decade and is set to fall to a record low of 2.6 percent this year, [Citigroup analyst Thomas] Chauvet wrote in a note Wednesday. While Kering won’t rush to sell its 86 percent stake at a depressed price, an exit “is an increasingly credible scenario in the next 12 to 18 months,” the analyst said.
Kering Chief Executive Officer Francois-Henri Pinault has rejected calls to dispose of the sportswear unit in the past, telling Bloomberg in February that he was “very confident that we will be able to continue to turn around Puma.”
