Puma, the sportswear giant, witnessed a significant 7.8% drop in its share price on Thursday, raising eyebrows among investors and analysts alike. This sudden decline comes as analysts from Stifel express doubts about Puma’s upcoming third-quarter earnings.
Analysts’ projections suggest that Puma’s earnings before interest and tax (EBIT) for the third quarter may experience a substantial low double-digit decline compared to the previous year. This forecast has deviated from market consensus, which had anticipated a more modest 6% decline.
Despite these uncertainties, Puma remains resolute in its pursuit of achieving full-year guidance, underscoring its unwavering confidence in the company’s long-term prospects. However, Puma has chosen not to provide commentary on the recent fluctuations in its share price.
It’s worth noting that the ripple effect of these concerns extended beyond Puma, as Adidas shares also registered a notable decline of 2.7%.
In an industry as dynamic as sportswear, Puma’s performance in the third quarter will undoubtedly draw intense scrutiny from both investors and analysts, as the company adapts to ever-evolving market conditions.
