Puma's Profit Decline and Leadership Shift: Navigating a Challenging Quarter
Puma has reported a decline in profit margin and stagnant sales for the first quarter. The company's sales were slightly above analyst expectations, but lower demand in the U.S. and China affected their wholesale business. With a new CEO set to take over, Puma aims to boost performance.
Puma, the renowned sportswear brand, announced a decrease in its first-quarter profit margin while sales remained flat as the company takes measures to enhance its performance.
For this quarter, Puma reported sales of 2.076 billion euros ($2.35 billion), surpassing analysts' expectations of 2.041 billion euros, indicating a modest increase of 0.1% compared to the previous year.
The company faces challenges as weaker sales in the U.S. and China led to a 3.6% decline in its vital wholesale business. In response, Puma appointed former Adidas sales chief Arthur Hoeld as the new CEO, following the resignation of Arne Freundt, to lead the turnaround from July 1. Puma remains committed to its 2025 sales growth projection but acknowledges the potential impact of U.S. tariffs.
(With inputs from agencies.)
Google News