Mar 13, 2025 02:10 PM IST
This comes proper after the German sportswear maker posted disappointing quarterly and annual forecasts a day earlier than, leading to its shares slumping 23%.
Puma introduced on Wednesday that it is going to be reducing 500 jobs worldwide in addition to shut some unprofitable shops on account of unsure US shopper demand.
A Puma Speedcat OG sneaker is displayed at a retailer in Paris, France, January 24, 2025.(Benoit Tessier/Reuters)
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The corporate’s CEO Arne Freundt had stated that Puma’s goal customers within the US weren’t spending on account of financial uncertainty.
The grim outlook got here after weak quarterly gross sales and annual revenue introduced in January, which triggered considerations concerning Puma’s capacity to compete with greater rivals like Adidas and Nike, together with new and fast-growing manufacturers like On Working and Hoka, in accordance with the report.
On prime of this, Puma additionally confirmed that Chinese language manufacturing made up about 10% of shoe imports into the USA, which at the moment are topic to the brand new tariffs by President Donald Trump.
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Because of this, the corporate is urging suppliers to diversify manufacturing away from China to different international locations like Indonesia.
Puma has forecasted its annual currency-adjusted gross sales to develop in a low- to mid-single-digit share charge, as in comparison with 4.4% in 2024, in accordance with the report.
In the meantime, Puma’s bigger rival Adidas recorded a strong efficiency in 2024 and adopted a cautious stance for 2025.
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What has labored final yr for each manufacturers is retro shoe fashions which have been relaunched. Puma stated that it nonetheless goals to promote 4 million to six million pairs of its relaunched motor racing-inspired “Speedcat” sneaker, in accordance with the report.
Beneficial Matters Information / Enterprise / Puma to chop 500 jobs worldwide and shut unprofitable shops over weak US demand
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