- Markets in Europe open higher; Wall Street futures in mixed mood before the open
- Puma (PUM.DE) shares with weakest session ever; loses 18% after preliminary results
- German shares of ProSiebenSat.1, Thyssenkrupp and Heidelberger dominate gains
- Investors await U.S. benefit claims at 2:30 p.m.; reading expected to show no significant change
- ASML (ASML.NL) shares lose 3.5% on news of Trump's plan to cut the company's chip exports to China
Germany's DAX is extending its upward streak today, posting strong gains despite weakness in some stocks in the index. Overall, however, shares of German companies are rising today in a 'broad bench' from Volkswagen shares, to aerospace companies like Fraport and Lufthansa. Market attention is turning to Puma, which is testing 7-year lows after surprisingly lower-than-forecast sales and profits. Until recently, investors had expected the company to be able to surprise positively; especially after Adidas' solid results. However, the weakness may indicate a potential loss of market._1a795d324c.png)
Fresenius, Brenntag and Volkswagen dominate gains in the DAX, with Siemens Energy shares extending their 1.3% rally; Qiagen, Porsche and Mercedes are losing ground. Source: Bloomberg Finance L.P.
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Source: xStation5
Source: xStation5
Puma with the worst session ever
Shares of apparel and footwear maker Puma fell nearly 18% on Thursday, after the German sportswear maker reported lower-than-expected sales and profits in the fourth quarter. As a result, investors are wondering whether the company will be able to compete with Nike or Adidas products. The weak results surprised the market all the more, after Adidas reported strong sales and profitability. The stock is trading at its worst session ever today and reached its lowest level since March 2018.
- Puma's fourth-quarter sales rose 9.8%, compared to the 12% increase expected by analysts.
- Net income last year fell to €282 million from €305 million, partly due to higher interest payments on debt.
- Frima has launched a cost-cutting program aimed at achieving an earning before interest and taxes (EBIT) margin of 8.5% by 2027, up from 7.1% in 2024.
- Puma introduced new shoes such as the Speedcat inspired by auto racing in the fourth quarter, but J.P. Morgan analysts said Speedcat sales trends were weaker than expected.
Puma has not disclosed any details about what led to the weaker-than-expected sales. In November, CEO, Arne Freundt said in November he indicated that he was calm about demand before the end of the shopping season. Barclays analysts said there was a risk that the drive to cut costs would distract management from increasing sales. They pointed to considerable uncertainty in the long term, meanwhile the company will provide more detailed guidance when it releases its full-year report on March 12.
PUMA shares (PUM.DE)
Puma's shares are losing almost 18% today and retreating to the lower limit of the downward channel. The price is oscillating around €35, where we have seen buying reactions several times before.
Source: xStation5
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