Puma's Reset: Navigating Profit Losses and Industry Challenges

Puma's shares have fallen by 16% due to expected annual loss and decreased sales. Newly appointed CEO Arthur Hoeld plans to revamp the brand amidst heightened competition and U.S. tariff impacts. The company's future strategies, such as quality distribution enhancement, will be outlined later this month.

Puma's stock plummeted 16% following an announcement of an anticipated annual loss, as the well-known German sportswear brand faces dwindling sales and profit pressures from U.S. tariffs. CEO Arthur Hoeld, in charge since July 1, emphasized a necessary 'course-correct' in a statement, identifying the need for brand revitalization.

Hoeld, who transitioned from Adidas to Puma, revealed plans to reassess growth strategies and improve wholesale distribution. By October's end, he aims to unveil a comprehensive roadmap for the company's future direction. Challenges mount as Puma adjusts to a more competitive market, especially with industry leader Nike's resurgence.

Compounding issues, CFO Markus Neubrand reported a projected 80-million-euro hit to gross profit due to tariffs, despite attempts to alleviate these impacts with fourth-quarter U.S. price adjustments. Meanwhile, Puma is recalibrating its supply chain logistics, striving to reduce reliance on Chinese manufacturing for U.S. markets.

(With inputs from agencies.)