Puma's Q3 Results Spark Debate; Stock Plunges Amid Job Cuts
Puma's third-quarter results have sparked debate among analysts, with some seeing positives in the adjusted operating result while others express concerns about financial uncertainties. The sportswear giant's currency-adjusted revenue dropped by 10.4% to €1.96 billion.
Puma's net loss in the third quarter stood at €62.3 million, a stark contrast to the €127.8 million profit recorded in the same period last year. Despite this, the company's operating profit reached €29.4 million. Management maintains its annual forecast of a low double-digit revenue decline and a negative operating result for 2025.
Looking ahead, Puma expects growth to resume in 2027, with 2026 serving as a transitional year. The company is shifting its focus towards direct-to-consumer sales, which saw a 4.5% increase. However, Puma's stock price plummeted over 8% following the earnings report, nearing the €19 mark and leaving it around 60% below its 52-week high.
Puma is also streamlining its operations, with plans to cut an additional 900 administrative jobs worldwide by the end of 2026, building on the 500 jobs already eliminated this year.
Investors are advised to await the full-year 2025 results for a clearer picture of Puma's progress. Despite the mixed reactions from analysts and the recent stock price drop, Puma remains committed to its growth strategy, with a focus on direct-to-consumer sales and continued operational restructuring.
