Shrinking market share, weak demand and US tariffs prompt Puma to warn of annual loss
[LONDON] German sportswear maker Puma on Thursday (Oct 30) said it would cut 900 jobs in its corporate workforce globally by the end of 2026, while announcing a series of measures to revive the business and combat sharp sales declines.
The company had already cut 500 roles worldwide this year as part of a cost-cutting programme announced in March.
Puma said it would expand the programme, as it attempts to turn around its performance under new chief executive Arthur Hoeld.
Shrinking market share and tepid demand for the brand’s shoes and outfits, as well as a sector-wide hit from US tariffs on imports, have led Puma to warn of an annual loss at the end of July.
Shares in the company have lost over 50 per cent of their value so far this year.
The company said it had already reduced undesired wholesale business, excess inventory at retailers, and promotions in e-commerce and full-price stores, as well as starting to cut exposure to mass merchants in North America.
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It also plans to clean up its distribution and carry out targeted marketing investments, it added.
It expects inventories to return to normalised levels by the end of 2026, after a 17.3 per cent increase to 2.12 billion euros in the quarter.
The company reported a decline in sales of 10.4 per cent on a currency-adjusted basis to 1.96 billion euros (S$3 billion) in the third quarter, slightly below the 1.98 billion expected by analysts in a company-provided poll.
The company said it expects to return to growth from 2027. REUTERS
