German sportswear giant Puma is going through a tough time. Despite CEO Arne Freundt’s claims that the company is on track, second-quarter results have sparked a backlash from investors, sending its share price to a six-year low.
While Puma posted a turnover of 2.12 billion euros in the second quarter, slightly down on the previous year, while currency-adjusted sales saw a growth of 2.1 percent. However, the operating profit (EBIT) came below market expectations, fueling investor skepticism.
The strong appreciation of the dollar weighed on Puma’s results, prompting investors to be more cautious. Despite the commercial success of its new model of sports shoes, sponsored by sprinter Usain Bolt, the company had to adjust its profit forecasts downwards.
A strategy called into question
Comparison with rival Adidas, under the leadership of former Puma CEO Bjorn Gulden, highlights the brand’s struggles. Despite product launches and strategic partnerships, Puma is struggling to convince investors of the strength of its business model.
The global economic environment, marked by inflation and uncertainty, as well as increased competition in the sports sector, are weighing on Puma’s performance. The brand must overcome many challenges to regain investor confidence and restart its growth.
Despite management’s efforts to reassure the markets, Puma is going through difficult months. Second-quarter results, below market expectations, have eroded investor confidence.
