Jamie Spencer
Puma SE shares dropped by as much as 25% on Wednesday, marking the largest decline on record, after the sneaker maker posted weaker-than-expected results and projected another sluggish year ahead. The stock hit its lowest level since 2016 and has lost nearly 50% of its value in 2025, significantly underperforming rivals Adidas AG and Nike Inc.
Disappointing Forecast and Market Reaction
Puma expects adjusted earnings before interest and taxes (EBIT) to range between €520 million ($568 million) and €600 million for the year, falling short of analyst estimates. The company also projected currency-adjusted sales growth in the low- to mid-single-digit range, citing headwinds from trade tariffs, currency fluctuations, and geopolitical instability.
CEO’s Challenges and Investor Concerns
Since taking over as CEO in late 2022, Arne Freundt has faced mounting pressure to reinvigorate Puma’s brand and financial performance. In January, the company reported disappointing fourth-quarter results just weeks after Freundt reassured investors of Puma’s solid footing. Analysts are increasingly doubtful that Puma can achieve its goal of reaching an 8.5% EBIT margin by 2027—a target already postponed earlier this year.
Strategic Focus on Brand and Footwear
To regain momentum, Puma is banking on key sneaker models such as the retro-inspired Speedcat to drive demand. Freundt emphasized that the company is working to enhance brand desirability, particularly in sports categories like running and football. Puma is also expanding its presence at premium retail outlets like JD Sports Fashion Plc.
Cost-Cutting Measures and Workforce Reduction
In response to the weak performance, Puma announced a global cost-cutting initiative that includes the elimination of 500 positions worldwide, with 150 job cuts at its headquarters.
Market Challenges and Economic Headwinds
Puma is grappling with weak consumer demand in both the U.S. and China, which has contributed to lower-than-expected first-quarter earnings. Analysts at Bloomberg Intelligence noted that Puma’s struggles reflect broader economic and trade uncertainties, particularly between the U.S. and China.
Looking Ahead
Investors will be watching closely to see if Puma can turn around its fortunes with new product launches and strategic brand positioning. The company’s ability to navigate trade tensions, currency pressures, and evolving consumer trends will be critical in determining its long-term success.
