Puma Stock: Shares Plummet on Bleak 2025 Outlook

The German sportswear manufacturer Puma has experienced a dramatic stock price collapse, with shares tumbling to their lowest level since 2017. The steep decline followed the company's disappointing financial forecast for 2025, which analysts have characterized as a de facto profit warning. Despite reporting a significant profit increase to €24.5 million in Q4 2024 and currency-adjusted revenue growth of 9.8% to €2.29 billion, Puma's outlook remains challenging. The company projects substantially slower growth for 2025, with currency-adjusted sales expected to increase only in the low to mid-single-digit percentage range. Additionally, shareholders face a dividend reduction of more than 25%, dropping to €0.61 per share from the previous year's €0.82. External pressures, including potential Trump tariffs and persistent currency fluctuations, continue to weigh heavily on the company's performance.

"Nextlevel" Program Aims to Counter Challenges

In response to these headwinds, Puma has announced a comprehensive cost-cutting initiative called "Nextlevel." The program focuses on improving gross profit margins, optimizing cost structures, and enhancing free cash flow. Implementation will require one-time expenses of up to €75 million in 2025 for closing unprofitable stores and restructuring measures, but is expected to generate additional EBIT contributions of up to €100 million. To reassure investors, Puma has also unveiled a share buyback program worth up to €100 million, scheduled to run from March 6 to May 6, 2025. However, the company's long-term goal of achieving a 10% EBIT margin remains under pressure, with the intermediate target of 8.5% now postponed until 2027.