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German sportswear giant Puma has announced plans to cut 500 jobs globally and shut down unprofitable stores, citing weak consumer demand in the United States. The decision follows disappointing quarterly and annual forecasts, which led to a sharp 23% decline in Puma’s stock, according to a report by Reuters.
The company’s CEO, Arne Freundt, attributed the job cuts and store closures to economic uncertainty in the US, which has impacted spending among Puma’s target consumers. The company has been struggling to compete with industry heavyweights like Adidas and Nike, as well as rising competitors such as On Running and Hoka.
Puma has also been affected by new trade policies. The company confirmed that approximately 10% of its shoe imports into the US are manufactured in China, making them subject to increased tariffs imposed by former US President Donald Trump. As a result, Puma is urging suppliers to shift production to alternative locations such as Indonesia.
Despite the challenges, Puma has projected annual currency-adjusted sales growth at a low to mid-single-digit percentage rate for 2025, a decline from the 4.4% growth recorded in 2024. Meanwhile, Adidas, Puma’s larger rival, reported strong financial performance in 2024 but remains cautious about market conditions in 2025.
One bright spot for Puma has been the revival of retro footwear trends. The company aims to sell between 4 million and 6 million pairs of its relaunched motor racing-inspired “Speedcat” sneaker, which has generated positive consumer interest.
As the company navigates these economic and industry challenges, its restructuring efforts will play a crucial role in maintaining competitiveness and sustaining long-term growth.
Sources By Agencies
