Puma SE Faces Investor Backlash Following Job Cuts and Q4 Earnings Announcement

In a surprising turn of events, Puma SE's shares took a significant hit, dropping by 23% to reach their lowest since March 2017. This dramatic decline came in the wake of the company's announcement to cut 500 jobs and the release of its fourth-quarter financial results.

Despite a notable 9.8% increase in currency-adjusted sales, amounting to €2,289.4 million in the last quarter, the company's future outlook has left investors skeptical. Puma's adjusted EBIT is projected to be between €520 million and €600 million, not accounting for one-time expenses. Looking ahead to 2025, Puma anticipates that geopolitical tensions, macroeconomic challenges, and currency volatility will negatively impact consumer sentiment, expecting only low- to mid-single-digit sales growth.

CFO Markus Neubrand addressed the job cuts as a necessary step towards cost reduction, highlighting the company's underperformance in key markets such as the US and China. This, combined with the intense competition from other brands, has only heightened investor concerns regarding Puma's market position. At 11:28 am CET, the company's stock price had fallen to $21.780, marking a significant 23.34% decrease.