Puma Stock Declines as New CEO Reveals Restructuring Strategy and Job Reductions
Job Cuts and Strategic Focus: Puma SE plans to cut 900 jobs and refocus on running, football, and training to recover from recent performance challenges, expecting difficulties to persist through 2025.
Inventory and Sales Decline: The company reported a 17.3% increase in inventories and a 10.4% decrease in Q3 sales, attributing the decline to strategic reset initiatives and aiming to normalize inventory levels by the end of 2026.
Brand and Market Positioning Issues: Puma's new CEO highlighted that the brand has become "too commercial," leading to low distribution quality and a product offering that fails to resonate in the market.
Stock Performance: Puma's shares fell 5.4% in morning trade and have decreased by 50% year to date, reflecting investor concerns over the company's fundamentals and strategic direction.
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