Could a Puma sale be next for Kering?
After Puma sold the rights for Tretorn to U.S.-based brand management firm Authentic Brands Group (ABG) earlier this week, buzz is heating up that Puma parent Kering could soon unload the athletic brand too. Sale speculation has also surfaced regarding the Sergio Rossi brand, which is said to be courting three private equity bidders. Kering also owns Balenciaga, Gucci, Saint Laurent and Sergio Rossi.
Citi Research European luxury analyst Thomas Chauvet, in a July 1 note, said that while “Kering’s management has historically been pragmatic about asset disposals and optimizing group structure, Puma’s continued margin pressures but renewed sales momentum could open the door for Kering to exit Sport & Lifestyle through a spin-off, sale to a trade buyer or private equity transaction.”
In its announcement—which came on June 30 while the acquisition was effective June 29—Puma said the sale of Tretorn is “a natural consequence of Puma’s vision to become the fastest sports brand in the world, focusing on its core categories within its core brands Puma and Cobra Golf.”
Tretorn—which Puma has owned since 2001— is based in Helsingborg, Sweden and produces sports and leisure activity products such as footwear, rubber boots, riding boots and tennis balls.