Puma has announced plans to cut 500 jobs globally and close unprofitable stores as part of a cost-cutting initiative, following a sharp 23% decline in its share price. The German sportswear giant also warned of uncertain consumer demand in the US, adding to concerns over its financial outlook.

The announcement comes a day after Puma issued disappointing quarterly and annual forecasts. CEO Arne Freundt cited economic uncertainty as a key factor behind weaker spending by US consumers.

“February was bad. March has started off a bit better,” Freundt said at a press conference on Wednesday.

Chief Financial Officer Markus Neubrand confirmed the company’s plans to reduce its global workforce and shut down underperforming retail locations to improve financial stability.

Puma also addressed concerns about potential US import tariffs, noting that only 10% of its shoes imported into the US now originate from China, compared to 30% in previous years. The company has been working with suppliers to shift production to other countries, including Indonesia, to mitigate risk.

On Tuesday, Puma forecasted that its currency-adjusted sales for this quarter would see low single-digit percentage growth—falling short of last year’s performance. The company also warned of significantly lower operating earnings for the same period.

For 2025, Puma expects annual currency-adjusted sales growth in the low- to mid-single-digit percentage range, compared with the 4.4% growth recorded in 2024, when revenue reached €8.82 billion. The company had initially projected stronger growth for 2025 but has since revised its expectations downward.

Puma also forecasted adjusted earnings before interest and taxes (EBIT) of €520 million to €600 million for 2025. However, this will be impacted by a one-time charge of up to €75 million related to its restructuring efforts.

Analysts at Barclays expressed concerns about Puma’s guidance, noting that expectations had already been revised downward. “While expectations have lowered recently, we still think this guidance is below the most conservative estimates and raises more questions,” they wrote in a note to investors.

Following the revised forecast, Puma’s shares dropped to €21.90 at midday, a level not seen since November 2016. The company’s struggles stand in contrast to its larger competitor Adidas, which recorded a strong performance in 2024 and remains cautiously optimistic for 2025.

Felix Dennl, an analyst at Metzler in Frankfurt, pointed to a stark contrast between Puma and Adidas. “The stark contrast in regional performance and sell-through versus Adidas underscores the importance of brand momentum in driving demand, but also orchestrating operational leverage amid a volatile retail environment,” he said.

The broader sportswear industry remains highly competitive, with Puma facing pressure not only from Adidas and Nike but also from emerging brands such as On Running and Hoka. While sales of retro sneaker models helped boost Puma’s performance last year, the company’s current outlook raises concerns about its ability to maintain market share and profitability amid a shifting retail landscape.