The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — Kering shares rose to record highs on Friday after the French luxury goods group announced plans to spin off German sports brand Puma to its shareholders, in order to focus squarely on its more upmarket brands.
Kering shares were up 0.9 percent at 412.40 euros in early session trading, with the stock at one point touching a record intraday high of 415 euros. Kering also outperformed a 0.1 percent decline in the STOXX Europe 600 Personal & Household Goods index, which houses many luxury goods stocks.
However, Puma shares slumped 14 percent, with some traders mentioning broker downgrades to the stock following the deal.
Kering said on Thursday that it planned to distribute 70 percent of Puma shares to its investors, leaving it with only a 16 percent stake, confirming an exclusive Reuters report.
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"We welcome this development, which if approved by shareholders, will increase Puma's free-float making it investable again for the first time in around 10 years. At the same time, Kering will be now able to focus purely on its luxury goods business, where we continue to see value," wrote analysts at brokerage Berenberg.
By Sudip Kar-Gupta; editor: Sarah White.
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.