Puma Battles Market Headwinds Ahead of Q3 Results
Puma, the German sportswear titan, is grappling with a tough stock market and financial struggles. Investors await the company's quarterly figures on October 30 for clues about its future trajectory.
Puma's stock has plummeted by 52.37% this year, reflecting a challenging stock market environment and disappointing results. The company reported a sales drop and negative earnings before interest and taxes (EBIT) in the second quarter. Analysts anticipate another loss per share in the third quarter, suggesting the downturn is ongoing.
Puma's management anticipates a turnaround only in 2026, a timeline echoed by Warburg Research, which maintains a 'Buy' recommendation despite lowering its price target to 35 euros. The analysts expect a stock market recovery in 2026, but 2025 remains challenging due to a profit warning and weak sales growth. Technically, Puma's stock is in a clear downtrend, with the price well below the crucial 200-day line.
Rumors of a potential takeover by Adidas could temporarily boost Puma's stock, but this is unlikely to be a long-term solution. Puma is expected to report a total loss for 2025, following a dismal year with a significant stock drop.
Puma's quarterly figures on October 30 will provide crucial insights into the company's current state and potential recovery. Despite a challenging outlook, some analysts remain optimistic about Puma's long-term prospects.
