Puma CEO Franz Koch Resigns After Profits Plummet 85%
His resignation follows the announcement that profits are down by 85.1 percent in the third quarter this year.
The German activewear firm had anticipated lower profits this year as the result of restructuring initiatives designed to counter the financial crisis in Europe. However, Puma has decided to change its business trajectory.
"We are now going to write a new chapter for Puma and thanks to the commitment and enthusiasm of the teams I’ve been meeting around the world, I am fully confident in our ability to realize the huge potential of this iconic brand," Jean-François Palus, Chairman of the Administrative Board of Puma SE, said in a company statement.
Puma will close 80 existing stores in efforts to tighten its budget and to devote more resources to product innovation and marketing.
Puma SE said that CEO's decision was based on a mutual agreement and that in the interim Koch will help recruit a new chief executive officer.