Can Puma’s Radical Overhaul Reverse Its Downward Spiral?

The German sportswear giant Puma is fighting for its survival. With shares plummeting more than 50% since the start of the year and a severe profit warning issued in July, the company is initiating a drastic corporate restructuring. A new retail chief is at the center of this make-or-break strategy, but market observers question whether a personnel change alone can halt the decline.

Financial Reality Bites

Behind the corporate reshuffling lies a stark financial picture. The company’s outlook for 2025 has shifted dramatically, with management now anticipating:

• A low double-digit percentage decline in revenue
• An EBIT loss, a stark reversal from the previously forecasted profit of €445-525 million
• A reduction in planned investments from €300 million to €250 million

This weakness is widespread, affecting all of Puma’s key regional markets. North America saw sales contract by 9.1%, while Europe and China each declined by 3.9%. The stock currently trades near €22, a level that places it more than 50% below its 52-week high and a mere 30% above its lowest point. A Relative Strength Index (RSI) reading of 26.2 further indicates the equity is technically deeply oversold.

A Veteran Takes the Helm

In a decisive move, Puma has appointed Ronald Reijmers, a 55-year-old industry veteran, to lead its global retail operations. Reijmers brings nearly three decades of experience from tenures at rivals Nike and Adidas, and most recently, at Gymshark. His start date of November 1 coincides with a major internal shift: the division of Puma’s direct-to-consumer organization into two distinct units.

Should investors sell immediately? Or is it worth buying Puma?

While Reijmers takes command of the physical retail business, the company is still searching for a leader to head the separate e-commerce division. Erik Janshen, the former executive in charge, is departing. The message from headquarters is unequivocal—the status quo is no longer acceptable.

The Countdown to Clarity

The critical question for investors is whether these organizational reforms and leadership changes will be enough to stabilize the company. A significant test arrives on October 30, when Puma is scheduled to release its third-quarter earnings.

Market experts are focusing on two key areas for evidence of progress. First, they will scrutinize whether Puma is successfully managing its inventory levels. Second, analysts will be looking for any early signs that cost-cutting initiatives are beginning to yield positive results.

Time is of the essence for the sportswear firm. As the new retail chief prepares to assume his role, the company is contending with a multi-front battle against US tariffs, persistently weak consumer demand, and a profound loss of investor confidence. The upcoming quarterly report will serve as a crucial indicator, revealing whether the rescue measures are taking hold or if the downward trajectory is set to continue.