Puma Posts Bruising Q3, To Cut 900 Jobs

Core Insights - Puma's organic sales declined by 10.4 percent in Q3, totaling 1.96 billion euros, attributed to a strategic "reset" amid various company-specific challenges [1] - The company is undergoing a restructuring led by new CEO Arthur Hoeld, who anticipates a return to healthy growth by 2027, with 2024 focused on transition [3] Sales Performance - Sales in the Americas fell by 15.2 percent to 678.1 million euros, primarily due to declines in North America [4] - The Asia-Pacific region experienced a 9 percent drop in sales, while Europe, the Middle East, and Africa saw a 7.1 percent decline, influenced by "takebacks" and scaling back of undesired business [4] - Footwear sales decreased by 9.9 percent to 1.05 billion euros, with the Speedcat model underperforming [4] - Apparel sales fell by 12.8 percent, mainly due to the lifestyle segment, and accessories dropped by 6.1 percent [5] Strategic Measures - The company has implemented measures such as reducing unwanted wholesale business, cutting excess inventory, and limiting promotional activities, all of which negatively impacted Q3 performance [2] - Puma plans to reduce its workforce by 900 positions as part of its restructuring efforts [2] Financial Outlook - Puma's EBIT collapsed in Q3, with both adjusted and reported EBIT falling by over 80 percent [3] - The company has revised its annual sales guidance, expecting a low-double-digit decline and reiterating its profit warning [5] - Earlier projections for low growth and positive EBIT between 445 million and 525 million euros have been abandoned [5]