Puma Stock: Profits Slump as Shares Hit 7-Year Low

Puma SE faces significant headwinds as recent financial results reveal concerning trends in the company's performance. Despite achieving a 2.5% revenue growth to €8.8 billion in the fourth quarter of 2024, the company's operating profit margin remains stagnant at 7.1%. The earnings before interest and taxes (EBIT) of €622 million fell substantially short of analyst expectations, contributing to a dramatic share price decline. The stock has plummeted to a seven-year low of approximately €32, representing a nearly 20% decrease. The company's market capitalization now stands at €4.8 billion, with fundamental indicators showing a price-earnings ratio of 15.27 for 2025 and a current price-to-cash-flow ratio of 7.37.

Strategic Share Buyback Response

In an effort to stabilize the declining share price and restore investor confidence, Puma has accelerated its share buyback initiative. The company acquired 122,592 of its own shares between January 20-24, 2025, with purchase prices ranging from €32.49 to €41.31 per share. Since launching the buyback program in March 2024, Puma has accumulated 1,382,046 shares while simultaneously developing an efficiency program aimed at improving profit margins through 2027.