Puma shares plunged by a fifth after the German sportswear brand announced 500 job losses and gave a bleak warning for the year ahead.
Chief executive Arne Freundt announced cuts including axing 150 roles at its Bavarian headquarters and said he would revive fortunes by closing unprofitable stores. The update raised questions about its ability to compete against rivals Adidas and Nike.
Puma, which sells a range of trainers designed by pop star Dua Lipa, said first-quarter sales growth would be below last year’s level due to weak trading in China and the US.
That will mean ‘significantly lower’ profits compared to £134million in the same period of 2024. Annual sales for 2025 are expected to grow by only ‘low to mid-single digits’. Last year sales grew 4.4 per cent to £7.43billion.
Shares in Frankfurt fell 19.9 per cent to their lowest since 2016 after it said ‘geopolitical tensions and economic challenges’ would continue to bite.
- Shares in Inditex, owner of fashion brand Zara, fell 7.5 per cent after sales rose 4 per cent between February 1 and March 10 compared to 11 per cent a year ago.
Shares down: Puma, which sells a range of trainers designed by pop star Dua Lipa (pictured), said first-quarter sales growth would be below last year’s level
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