Puma Shares Hit Nine-Year Low Amid Weak Forecast

Puma's shares have plummeted to a near nine-year low following a bleak forecast for 2025, citing ongoing geopolitical tensions, trade disputes, and currency volatility as major challenges affecting sales and profitability. The German sportswear company expects currency-adjusted sales to grow only in the low- to mid-single digits, with EBIT projected between €445 million and €525 million, significantly below the previous year's €622 million. Analysts are concerned about Puma's brand momentum and product offerings, particularly in the U.S. and China, where performance has been notably soft. The company has also announced a cost efficiency program that will incur one-time expenses of up to €75 million, contributing to the lower earnings forecast. Despite a strong fourth quarter in 2024, Puma's overall sales growth has been lackluster, prompting a strategic shift to bolster brand elevation and address macroeconomic challenges. Furthermore, Puma's decision to lower its dividend to €0.61 per share from €0.82 reflects cautious financial management in light of the uncertain market environment.