Puma plans job cuts as US demand weakens, outlook dims

Puma on Wednesday announced job cuts and warned of uncertain US consumer demand. The German sportswear group’s shares slumped 23 percent in the wake of disappointing quarterly and annual forecasts issued a day earlier.

The grim outlook, which follows weak quarterly sales and annual profit announced in January, has raised concerns over Puma’s ability to compete with bigger rivals Adidas and Nike while fending off newer, fast-growing brands such as On Running and Hoka.

Chief executive Arne Freundt said Puma’s target consumers in the United States were not spending due to economic uncertainty.

“February was bad. March has started off a bit better,” he said at a press conference.

Chief financial officer Markus Neubrand announced plans to cut 500 jobs worldwide and close some unprofitable stores as part of a cost-cutting plan.

When asked about the potential impact of US import tariffs, Puma’s management confirmed that Chinese production made up about 10 percent of shoe imports into the United States, down from 30 percent in the past.

The company was urging suppliers to diversify production away from China to countries including Indonesia, they said.

Late on Tuesday, Puma forecast currency-adjusted sales for the current quarter to grow in a low single-digit percentage, below last year’s level, with “significantly” lower operating earnings for the same period.

It said its annual currency-adjusted sales would grow in a low– to mid-single-digit percentage rate, compared with 4.4 per cent growth to 8.82 billion euros (US$9.62 billion) in 2024.