Puma's CEO Jochen Zeitz will head a new a new Sports & Lifestyle unit at PPR SA, its parent company. Zeitz, who has been Puma's CEO since 1993, is charged with building a portfolio of brands around the Puma label. He will remain Puma's CEO until a replacement is named. On a conference call with analysts, PPR's CEO Francois-Henri Pinault said the Paris-based company will acquire more sporting-goods and leisure brands to make the division a “second pillar” of the company next to its luxury business that includes Gucci and Yves Saint Laurent. PPR will start making acquisitions only after it has sold “one or two” of the retail businesses that it has earmarked for sale, he said.
PPR is looking to sell its Fnac, Redcats and Conforama units.
“We will focus on complementary and not on competing brands to Puma,” Pinault said.
Puma has also said that acquisitions would be part of its own growth strategy. The Cobra golf line was acquired from Fortune Brands in the second quarter.
Puma will also change its legal structure to that of a European corporation and be renamed Puma SE (Societas Europaea), with only one board to be chaired by Zeitz in the role of executive chairman. PPR said the new management structure will facilitate the implementation of Puma's five-year strategic plan. Its five year strategic plan 2011-2015 will be released together with Puma's third-quarter results on October 26.
PPR owns 72% of Puma’s stock and Puma will remain a publicly-listed company.
