Puma, the famous sportswear brand, announced on Wednesday that it will lay off 500 workers around the world and shut down some stores that are not making money. This decision comes as Puma faces problems with sales in the US, where people are not buying as much due to economic worries. The company’s shares dropped by 23% after it shared disappointing forecasts about its sales and profits.
Puma’s CEO, Arne Freundt, noted that many of their customers in the US are holding back on spending because they are worried about the economy. This news follows a weak report of quarterly sales and overall profits, raising fears about how well Puma can compete with bigger brands like Adidas and Nike, as well as newer brands like On Running and Hoka.
Moreover, about 10% of the shoes that Puma sells in the United States come from China, which now has new tariffs set by President Donald Trump. To deal with this, Puma is asking its suppliers to find other countries, like Indonesia, to produce their shoes.
Puma expects its sales to grow slowly this year, in the low to mid-single-digit range, compared to a 4.4% increase in 2024. Meanwhile, Adidas, one of Puma’s biggest competitors, is doing well and is taking a careful approach for 2025.
What worked for both Puma and Adidas last year were retro shoe styles that they brought back. Puma is planning to sell 4 million to 6 million pairs of its retro “Speedcat” sneakers, which are inspired by motor racing.
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