German sportswear brand Puma Chief Financial officer Peter Neubrand announced plans on March 12 to cut 500 jobs worldwide and close some unprofitable stores as part of a cost-cutting drive.
Puma launched a cost-cutting programme in January, causing its share price to wobble. The company's chief financial officer issued disappointing financial guidance for the first quarter and full year 2025 late on Tuesday, mainly due to weak demand in the United States and China.
Puma expects this year's earnings before interest and tax (EBIT) to be between €445m and €525m, below 2024 levels, and first-quarter revenue growth will be slower than in the same period last year due to weak demand in China and the US.
Chief Executive Officer Frant said Puma's target consumers in the United States did not spend because of economic uncertainty, and February was not good, and March is off to a slightly better start.
Asked about the possible impact of U.S. import tariffs, Puma management confirmed that Chinese-made footwear accounts for about 10 percent of U.S. shoe imports, down from 30 percent in the past. The company is now urging suppliers to shift production from China to other countries, such as Indonesia.
Puma's financial report for 2024 shows that full-year revenue increased by 4.4% year-on-year, totaling 8.817 billion euros. However, while revenues rose, Puma's net profit suffered a 7.6 per cent year-on-year decline to €282m, highlighting a significant stagnation in profitability.
The weakness of market demand is an unavoidable problem for Puma. As Puma's core markets, consumer demand in North America and China has shown a slowing trend. Especially in Greater China, since the third quarter of 2024, the signs of market weakness have become more obvious, consumers' purchasing power has declined, and the demand for high-end sports brands has weakened, which undoubtedly puts great pressure on Puma's sales growth.
Follow us for more info. wedding & event linen suppliers wholesale Readortex, official website and B2B online store