Last year (Mar. 18, 2002), once we profiled Puma, Germany’s No. 2 sporting merchandise maker, we claimed the organization with the pouncing cat symbol beneath the path of youthful CEO Jochen Zeitz was gearing up for a comeback. Ahead of Zeitz’s tenure Puma was an all but neglected name in a very current market dominated by giants like Adidas and Nike.
Thanks to Zeitz’s savvy advertising and brand positioning technique, the cat is from the bag. In 2002 Puma’s web earnings extra than doubled in the past year, to $88 million, on profits of $953 million up from nike air max trainers $530 million in 2001. Puma appears poised for one more strong yr: In the very first quarter of 2003 net earnings extra than doubled from the very same Nike Free Run 2 orange time last calendar year, to $51 million on revenue of $360 million. Zeitz claims profits will improve a minimum of a further 30% this 12 months, and he expects double digit gross sales increases via 2006. “We possess the orders on hand, and finally that is what drives foreseeable future progress,” he claims.
Puma’s biggest gains have already been in Europe, the place product sales enhanced by 55% very last yr, buoyed by robust sneaker demand from customers. Puma is additionally building tracks within the all critical North American marketplace. gross sales inched up 2% and Adidas saw gains in North The united states of 8%. now outnumber those from Europe.
Part of Puma’s strategy should be to heighten demand from customers by restricting creation volume. Past summer Puma launched ninety six Hours, an entire package like a suitcase and dressy relaxed wardrobe made for men’s organization Nike Free 5.0 red journey. luxury retail outlet Barneys. “This is the pinnacle of what we do,” suggests Zeitz. “It is graphic driven much more than business enterprise pushed.”
Puma remains to be cheaper compared to competition. It trades at 13 situations earnings, in contrast with sixteen for Adidas Salomon and twenty for Nike. Brand name X
Kraft Foodstuff has had a troublesome yr because we profiled Co main Executive Betsy D. Holden (Apr. fifteen, 2002).
We reported Kraft’s size and ubiquity ended up propelling the Northfield, Illinois based foodmaker in advance of its scaled-down opponents. But inside of a weak economic system consumers move clear of large brands that mens Nike Free 4.0 price far more than lesser identified alternatives.
Kraft’s inventory has tumbled 22%since our tale, to your current $31. Other complications: Mounting commodity prices forced wholesale costs on cookies and crackers up by 3%. Increase to that larger pension and staff health treatment charges.
There have been bits of excellent information in April.
Wall Road had fretted that Kraft might be about the hook to the $12 billion courtroom ordered bond owed by mum or dad Altria Team. Now Altria is stating that Kraft would not foot the bill for any tobacco litigation expenditures.
We wrote past September that ethnic Chinese financial institutions about the earth were significantly applying mergers and acquisitions amid by themselves to consolidate their buyer base. (A abide by on profile in March of California’s mens Nike Free 5.0 East West Bank pointed out the profitability of serving the Asian American niche.)
Unlike quite a few American financial institutions that press credit rating cards and vehicle loans, Cathay touts low price fund transfers to China and foreign currency deposits. imports.