US tariffs could push Puma away from China: CEO
26/04/2018
Puma reported revenue of $1.1 billion in the first quarter of 2018, an increase of 12.5% compared to the same quarter last year. This was driven by growth of almost 35% in Asia, led by strong performance in China.
Mr Gulden (pictured) said Puma currently makes around a third of its products in China and is looking to source more footwear from countries like Vietnam and Indonesia and more apparel from Cambodia and Bangladesh.
“Our sourcing people have been working on alternatives for the last two or three months,” he explained. “It [the threat of higher tariffs] causes headaches for many people.”
Mr Gulden said moving production for the US market would take around 12 months. The capacity freed up in China could be used to make more products for the growing domestic market, he added.
He dismissed the idea that tariffs on imports from China would encourage footwear production to return to the US, although he suggested it may make sense for Puma to move sourcing closer to its major markets in the long-term.
Image courtesy of Puma.
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