Analysts predict that Puma could be sold by Kering next year, allowing the French group to focus more or less entirely on luxury products, according to a Reuters report. Kering bought its majority stake in Puma in 2007 in a deal valuing it at €5.3 billion, but the report says that it no longer constitutes a strategic asset for the French owner. In recent years it has spun off several other assets in retailing and other activities, and it appears that there are few synergy effects between the luxury and sports divisions. Following the earlier divestiture of Electric, the sports division also includes Volcom, whose sales have been marginal and declining. The speculation about a potential sale of Puma is backed by the improving performance of the German sports and lifestyle brand. The value of Puma shares has increased by more than 30 percent since the start of this year, rising slightly above the price of €330 per share originally paid by Kering. Puma's market capitalization implies multiples that are far above those of Nike and Adidas, which could make it tough to find a buyer, Reuters adds. It could therefore be an option to spin off Puma along the same lines as it has previously done with a book and electronics retailer, Fnac, distributing shares to Kering's own shareholders.

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