Puma’s Stock Crashes 64% as Analysts Warn of Long-Term Struggles
Puma’s stock has plummeted by over 64% this year, nearing its 52-week low. The sportswear brand now faces mounting pressure as analysts warn of deep structural challenges and a bleak outlook for recovery.
The company’s struggles stem from a mix of operational and strategic failures. Massive product returns from wholesale partners have left Puma with excess inventory, while an unclear brand strategy and inconsistent messaging have weakened its market position. At the same time, fierce price competition and forecasted losses for 2025 have forced management to rethink its approach.
Puma’s planned realignment focuses on core sports categories, cost-cutting, and a shift toward premium positioning. The aim is to reduce reliance on mass-market sales and boost direct-to-consumer channels. Yet, without a clear long-term growth plan, investors remain hesitant to back the brand.
Deutsche Bank Research has responded by downgrading Puma’s stock to 'Hold' and slashing its price target to €16.00. Analysts now see little potential for a quick rebound, citing structural issues rather than short-term setbacks. Earnings forecasts have been sharply lowered, reinforcing doubts about a sustainable turnaround.
Uncertainty continues to weigh on Puma’s stock performance, with major investors waiting for concrete signs of progress. A lasting recovery will depend on stronger execution of its revised strategy and measurable improvements in operations. Until then, the brand’s outlook remains under pressure.
