Puma shares fell 16% due to weak sales

16:55 - 23.01.2025


January 23, Fineko/abc.az. Puma shares plunged 16% on Thursday after the German sportswear brand announced weak fourth-quarter sales and lower annual profits.

ABC.AZ informs, referring to tJP Morgan analysts, that the weak results were posted against the backdrop of successful sales and profitability of competitor Adidas.

Puma shares fell 16.5% to 34.90 euros, hitting a 5-month low and marking the worst day in the company's history. Sales in the 4th quarter grew by 9.8%, adjusted for exchange differences, which is lower than the 12% expected by the market. Net profit dropped to 282 million euros from 305 million a year earlier.

Puma has launched a cost reduction program with the goal of achieving an EBIT of 8.5% by 2027. Barclays analysts noted the risk that this initiative could distract management's attention from increasing sales.