Puma Shares Plummet 18% After Profit and Sales Miss Expectations

The German sportswear brand announced a cost-cutting plan following disappointing 2024 financial results and intensified competition from rivals.

Puma's shares dropped over 18% to their lowest level since 2018 after reporting weaker-than-expected fourth-quarter sales and annual profit.
The company's net profit for 2024 fell to €282 million, down from €305 million in 2023, attributed partly to higher interest payments on debt.
Puma launched a cost-cutting initiative aiming to improve its EBIT margin to 8.5% by 2027, up from 7.1% in 2024, while maintaining a stable headcount.
Analysts raised concerns about Puma's ability to compete with dominant rivals like Adidas and Nike, as well as newer brands such as On Running and Hoka.
CEO Arne Freundt expressed dissatisfaction with profitability but projected stronger sales growth for 2025, with detailed guidance expected on March 12.