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- Puma is making progress in the sportswear sector.
- The company announced a 15.7% increase in sales for the second quarter of 2019 and opened Thursday a new flagship store on Fifth Avenue in Manhattan, New York.
- Bjørn Gulden, CEO of Puma, told Business Insider: "I do not see my job as a competition against all brands, I see it as a good brand for the consumer."
- Visit the Business Insider Home Page for more stories.
Puma may be smaller than the other major athletic brands, but the German company is making huge gains.
The company announced stellar profits in 2018 and a sales increase of 15.7% for the second quarter of 2019.
"The brand is much smaller than the big names but it certainly has some success," said Matt Powell, VP and senior adviser to the NPD industry for the month of August at Footwear News.
Read more: We visited Nike, Adidas and Under Armor to find out which store is doing the best for the sport. The winner shocked us.
Although the sportswear company is skyrocketing, it still remains behind industry giants such as Nike and Adidas. Puma earns less than its competitors each year, but leaders do not seem too worried.
"I do not see a competition against all brands in my job," said Puma CEO Bjørn Gulden at Business Insider in Manhattan's newest flagship store on Fifth Avenue. "I see this as an attempt to be a good brand for the consumer."
Another executive accepted.
"We think we are playing in a different way than these brands," said North American president Bob Philion, admitting that brands such as Nike and Adidas were much larger than Puma.
Philion highlighted a number of elements that distinguish Puma from its competitors, such as sportswear and lifestyle clothing, two categories that are becoming less distinct.
"We play in a very good and growing space," said Philion.
Leaders also say that Puma's growth comes from different places. Philion cited advances in everything from product to marketing, which contributed to the growth of the brand.
"We are improving in everything we do," he said.
Puma returned to the basketball business last year with great success and plans to continue to capitalize on this market in North America.
With 18,000 square meters spread over two floors, Puma's new flagship product, Manhattan, also demonstrates its continued commitment to the North American market, executives said. The store will also serve as a "lab" to test what works or not, with three distinct interactive experiences, such as a simulator to test the shoes on a virtual football pitch.
Read more: Puma's new flagship store features giant shoes, video games and a virtual football field. We visited and saw why sales soared.
Gulden and Philion agree that the conquest of the US market – a third of Puma's total activity – is critical to growth. The flagship product is intended to help achieve this goal.
"Let's be honest," said Philian. "The size of the price is significant here."
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