Latest news with #ArneFreundt
Business Mayor
09-05-2025
- Business
- Business Mayor
Puma reports decline in first-quarter profit margin
Sportswear brand Puma reported a decline in first-quarter profit margin on Thursday and flat first-quarter sales as the company cuts costs in an attempt to turn its performance around. Puma's sales of 2.076 billion euros (USD 2.35 billion) were slightly better than analysts' forecast of 2.041 billion euros, up by 0.1 per cent compared with the first quarter last year. Weaker sales to retailers in the U.S. and China drove Puma's wholesale business – its main sales driver – down by 3.6 per cent. Puma is in a period of limbo, having named former Adidas sales chief Arthur Hoeld its new CEO last month to turn performance around. Arne Freundt stepped down on April 11, and the board is leading the company until July 1 when Hoeld takes over. Puma stuck to its 2025 outlook for 'low-to mid-single-digit' sales growth, but said that excludes any impact from U.S. tariffs. READ SOURCE
Business of Fashion
08-05-2025
- Business
- Business of Fashion
Puma's Earnings Meet Estimates in Boost for CEO-less Brand
Puma SE reported a stable first quarter in a boost for the German sportswear company, which is currently operating without a chief executive officer. The sneaker brand's adjusted earnings came in at €76 million ($86 million) before interest and taxes, according to a statement Thursday. That's down from a year ago but slightly ahead of analyst estimates. Puma also maintained its 2025 earnings targets while acknowledging that the outlook ignores the potential impacts of President Donald Trump's tariffs because there's so much uncertainty. Shares rose as much as 7.8 percent in Frankfurt trading. The stock is down more than 40 percent so far this year. The steady performance amounts to a bright spot for the German brand, which in April parted ways with its former CEO Arne Freundt following a disagreement with the supervisory board over the company's strategy. Puma is now waiting for Adidas veteran Arthur Hoeld's arrival as boss in July. It's a challenging time to be without a leader, with the sneaker industry's exposure to Asia manufacturing putting it in the crosshairs of the US trade war. But Puma appears to be gaining some momentum with its retro Speedcat sneaker, which is key to the company's efforts to raise prices for its more fashionable footwear. The brand still plans to sell between four and six million pairs of the thin-soled Speedcat and related models like the Ballet shoes this year, chief financial officer Markus Neubrand said on a call with reporters. Demand has been particularly strong for those in Asia and North America, while it's been disappointing at some European retailers, he said. While Puma only gets about 20 percent of its sales in the US, the brand has nonetheless seen resilient demand in the country despite concerns about recession and inflation. 'Traffic was under pressure mostly in February, which was the worst month, and since then we've seen an improvement to the traffic development in the US,' Neubrand said. While many investors will welcome the company's decent start to the fiscal year, they'll probably want to see how exactly Hoeld will adjust the strategy before changing their opinion about Puma, Piral Dadhania, an analyst at RBC Capital Markets, said in a note. Puma performed slightly better than expected in the Europe, Middle East and Africa region while its performance suffered in North America and China, Dadhania noted. In March, Puma disappointed investors with a gloomy trading update based on trade tariffs, currency swings and escalating geopolitical tensions. It also said adjusted earnings before interest and taxes would probably fall this year to between €520 million and €600 million, while currency-adjusted sales would only grow in the low- to mid-single-digit range. The outlook raised doubts about whether Puma can achieve its target of an 8.5 percent EBIT margin by 2027, a goal it already pushed back by two years in January. The brand has struggled to build on the momentum it generated during the nearly decade-long tenure of Bjorn Gulden, who left to become Adidas's CEO in 2023. Freundt sought to deepen Puma's profile on higher-end sneakers and sports gear but never managed to roll out a product that captured the zeitgeist. While some analysts applauded the decision to bring in Hoeld as the new CEO, they cautioned that it will take months for Puma to change its strategy and even longer for Hoeld to bring new products to market. By Tim Loh Learn more: Puma Warns Tariffs, Geopolitical Tensions in 2025 Forecast The German sportswear brand expects currency-adjusted sales to grow in the low- to mid-single-digit range, it said in a statement.
Wall Street Journal
08-05-2025
- Business
- Wall Street Journal
Puma Confirms Outlook in Challenging Environment Given U.S. Tariffs
Puma reiterated its guidance for the year amid a challenging landscape marked by the potential impact of U.S. tariffs. Photo: abdul saboor/Reuters Puma reiterated its guidance for the year amid a challenging landscape marked by the potential impact of President Trump's tariffs and shortly after the group parted ways with former Chief Executive Arne Freundt . The German sporting-goods company said Thursday that it continues to anticipate an increase in sales in the low- to mid-single-digit percentage range on a currency-adjusted basis in 2025.
Boston Globe
18-04-2025
- Business
- Boston Globe
Puma's new running shoes offer hope for a brand desperate to win
'It's a little bit of an ambush,' says Erin Longin, general manager for Puma's running division. 'I hope people are like, 'Wow, what is that shoe everybody's wearing?'' Running shoes are among the hottest selling items in footwear, according to data from market researcher Circana LLC, with the US market alone growing 6 percent last year to $7.4 billion. By focusing on bouncy, plushly cushioned models — an approach partly innovated by Nike — new brands like On Holding AG and Deckers Outdoor Corp.'s Hoka have seized market share, alongside re-energized incumbents like Brooks, New Balance and Asics. Puma, meanwhile, is racing to catch up. The company only reentered the hardcore running space in 2021. Since then, it's struggled on the fashion side of the business, one reason why the stock has plunged 82 percent from its peak. Earlier this month, CEO Arne Freundt left the company after just two years over disagreements with the supervisory board. Advertisement Puma was once a pioneer in the running world, . In 1964, Ethiopian Abebe Bikila defended his Olympic marathon gold in a pair of the brand's Osaka shoes. In the 1980s, American long-distance legend Bill Rodgers served as director of Puma's 'Running Institute' and raced in its Fast Riders. Bbut after repeated changes in ownership and a pivot to 'sports lifestyle' products that emphasized socks, sweatpants and underwear, the company fell into obscurity with serious runners. That started to change in 2018, when then-CEO Bjoern Gulden began plotting a return to running after overhauling the company's football and basketball lines. The goal was not to imitate Nike and other competitors for a quick revenue boost, but to develop a unique line of products that would build long-term credibility, Romain Girard, Puma's head of innovation, said in a recent interview at the company headquarters near Nuremberg. The new models certainly needed to resonate with serious athletes. But longer term, Puma wanted to tap into the ballooning market of people snapping up comfy running shoes for day-to-day wear — an opportunity that incumbents like Nike and Adidas had missed. A prerequisite for that was developing a new foam. After experimenting with various materials and chemistries, Puma landed on a version injected with nitrogen gas for added bounce. To demonstrate how the technology has improved over the years, Girard dropped small metal balls onto different types of Puma foam soles, watching them ricochet higher and higher as the models progressed. Advertisement In February 2021, Puma launched its new line, releasing five styles that all featured the Nitro foam. Four years on, the shoes have garnered plenty of praise, but that hasn't been enough to revitalize the brand. Last summer, US running-store chain Fleet Feet published a report with data from its nearly 300 locations which showed that Hoka, Brooks and On had become the most popular brands. Puma didn't even make the top 10. Today, Puma is still only available in 20 Fleet Feet locations across the US, though it's performing well in many of those. 'They have a very good running platform in Nitro, which is better than a lot of the other things on the market,' said Piral Dadhania, an analyst at RBC Capital Markets in London. 'They just haven't been doing a good enough job of commercializing it.' When Adidas veteran Arthur Hoeld takes over as Puma's next CEO in July, that will likely be at the top of his list. While there is no consensus among analysts on how Hoeld might want to tweak the company's overall strategy, pretty much everyone agrees that the Nitro franchise is one area where Puma could gain traction among consumers willing to drop huge sums of money on sneakers. 'Nitro is a nice premium offering for them and the shoes look really good in that space,' John Kernan, an analyst at TD Securities in New York, said in an interview. 'But it's going to take time to scale because the competitive environment is pretty tough.' That's where guerilla marketing strategies like the Boston Marathon campaign come in. Supershoes like the Fast-R 3 are the culmination of years of research and design efforts — and a way for brands to generate buzz and boost prices. In 2023, Adidas debuted a featherweight, $500 racing shoe. Last fall, On released a $330 model produced largely by a synthetic-spraying robot. Puma's new model comes with a marketing blitz of its own, including promises from experts that the shoes can slash minutes from people's marathon times. Advertisement In Boston and London, Puma hopes to win over hardcore runners — and many more customers — with the spectacle of its athletes leading the way, cheered on by thousands of fans. And, of course, it hopes to give its sponsored marathoners a better chance to win. Since joining Puma in 2022, Patrick Tiernan has stayed competitive with rivals clad in, say, shoes from his old sponsor, Nike. Now, the 30-year-old Australian Olympian believes that the Fast-R 3 just may increase the efficiency of his stride enough to give him an edge. 'This is definitely the first time I've thought: 'These shoes might actually be better than what these other guys are wearing,'' he said in an interview.
Yahoo
03-04-2025
- Business
- Yahoo
Puma's first European flagship store to open in London in autumn 2025
German sports apparel brand Puma will launch its first European flagship store in the West End of London in autumn 2025. The move is a key part of Puma's strategy to elevate the brand and solidify its international presence. Puma CEO Arne Freundt stated: 'After unveiling our flagship store in Las Vegas last year, we're incredibly excited to announce that our first flagship store in Europe will open later this year. 'Our London flagship store is an important part of our brand elevation strategy. It brings the best of the Puma brand to life for our consumers and showcases our latest innovations and design newness as part of an immersive experience.' The upcoming store will feature 24,000ft² of retail space, offering a fusion of sport and style, with the opportunity to engage in distinctive experiences and personalisation services. The new store is located close to Selfridges on Oxford Street and Bond Street tube station. Puma UK and Ireland managing director Lucynda Davies stated: 'We're thrilled to announce our new flagship store in London, marking an exciting step forward for Puma in the UK. London is a key city for the brand, and this prestigious location on Oxford Street reflects our commitment to delivering a unique, consumer-led experience. While our Carnaby Street store has served us well since 2002, this flagship store will extend our product offering and bring Puma's performance and sportstyle categories to life in a flagship store setting.' The company will offer additional details regarding the opening as the launch date approaches in the fourth quarter (Q4) of 2025. In March 2025, Puma issued a warning that sales growth would be in the low to mid-single digit percentage range in 2025. The brand also plans to roll out its RE:FIBRE initiative across the Americas, incorporating recycled raw materials into its regional production processes. The company has set a target to incorporate 30% recycled polyester derived from fibre-to-fibre processes into its clothing lines by 2030. "Puma's first European flagship store to open in London in autumn 2025" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
