The Strategist

Puma shares fall 20% after reporting a profit loss



01/24/2025 - 05:37



Shares of the German sportswear company Puma dropped by nearly 20% following the announcement of initial financial results for 2024. On January 23, they had a value of €33.55 (-19.86%). According to Bloomberg, this decline was the largest for the company in the past twenty years.



FHOONIGM Pingmenu
FHOONIGM Pingmenu
Preliminary results indicate that Puma's net profit for 2024 reached €282 million, representing a 7.5% decline compared to the previous year. Revenue adjusted for currency increased by 4.4% to €8.817 billion, aligning with the company's prediction of growth in the “mid-single digits.” According to Morgan Stanley analyst Grace Smalley, the disappointing outcomes from Puma stem from poorer-than-anticipated performance in Latin America, a robust U.S. dollar, supply chain challenges, especially from the threat of tariffs on imports from China.

Furthermore, Puma revealed plans for reducing expenses. The firm anticipates achieving its operating margin goal of 8.5% by 2027. Smalley pointed out that this is worse than the earlier prediction, which anticipated the target would be met by 2025. In 2024, Puma's operating margin stood at 7.1%.

Puma stated that the expense-reduction initiative will emphasize savings, particularly concerning employee expenditures. Simultaneously, a spokesperson for the company stated that Puma intends to keep its workforce stable and has no intentions of implementing layoffs, according to Reuters.

source: reuters.com