Puma is one of the most popular athletic brands in Europe. In a sign of just how bad the European economy is, the athleticwear brand reported that sales were down a staggering 85 per cent in the third quarter.
Puma is spending a ton of money to shut down about 80 unprofitable European stores.
That doesn’t mean that people aren’t buying Puma — the company actually reported a mild sales increase.
Sales in the third quarter rose by 6 per cent in euro terms to 892.2 million euros, or $1.12 billion, according to Women’s Wear Daily.
But the costs of restructuring the business were simply too much.
“Our Transformation Program 2010-2015 in combination with immediate cost cutting measures and a strengthened product pipeline in performance and lifestyle for next year will provide a solid basis for sustainable and desirable growth,” Franz Koch, chief executive officer of Puma, told WWD.
Puma is Europe’s second-largest athletic apparel retailer, after Adidas. The company has about 540 stores worldwide.
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