German sportswear giant Puma experienced a significant drop of over eight percent in its shares, marking its lowest point since 2018, according to Reuters. The company attributed this decline to the challenging economic environment and a decrease in demand.
Analysts expressed surprise and disappointment at the extent of the lower guidance provided by Puma, which fell below consensus expectations. The tough economic conditions and softer demand have impacted various retailers, exacerbated by high interest rates and political unrest in the Middle East.
Puma’s CEO, Arne Freundt, acknowledged the persistent challenges in the geopolitical and macroeconomic landscape for 2024. He highlighted the impact of highly volatile currencies, which are expected to continue weighing on consumer sentiment and demand, especially in the first half of the year.
Additionally, Puma reported that its sales in 2023 amounted to around 8.60 billion euros, facing challenges such as a 54 percent surge in the value of the Argentine peso in December.
