Puma earnings disappoint, shares hit hardest in decades
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The news: Puma shares plunged after the shoemaking company reported disappointing earnings and announced a cost-cutting program.
The numbers: The German sportswear brand's net income for 2024 dropped to €282 million ($467.99 million), down from €305 million the previous year, missing analysts' expectations.
Shares plummeted by as much as 21.59%, marking their steepest decline in over two decades.
Despite a 4.4% increase in full-year sales to €8.8 billion, Puma attributed the profit drop to higher interest expenses and partial consolidation of profits from a US joint venture.
The decline contrasts with rival Adidas's strong performance earlier this month, with strong sales and profitability for the holiday shopping period.
What they said: CEO Arne Freundt said the cost cutting program will help the company reach an EBIT margin of 8.5% by 2027, up from 7.1% in 2024 but pushing back its previous target of 2025.
The source: Puma release
