Introduction
Puma has announced that Arthur Hoeld, former sales chief at Adidas, will succeed Arne Freundt as CEO due to differing strategic viewpoints.Context
Puma has faced difficulties in enhancing sales and profitability for over a year. This leadership change marks a notable shift in talent between the rival brands, coming two years after a successful turnaround under a previous CEO. The two companies are in close proximity to each other in Herzogenaurach, Germany, and share a long-standing rivalry that dates back 75 years to a family feud between the founders.Developments
Freundt, who has been CEO since November 2022, is set to step down on April 11. Hoeld will officially take on the roles of chairman and CEO starting July 1, during which the board will manage the transition. Hoeld expressed enthusiasm about joining Puma, highlighting his commitment to the brand.Despite Adidas benefitting from the popularity of its Samba and Gazelle sneakers, Puma has struggled to generate interest in new models like the Speedcat. The company recently forecasted weaker sales for 2025 compared to last year and cited uncertainties affecting consumer spending in the U.S., which represents 20-25% of its global revenue. Citi analyst Monique Pollard believes the leadership change will be perceived positively by investors concerned about performance and strategy.
Puma's shares fell by 10% on Thursday, partly due to U.S. tariffs impacting manufacturing in China, Vietnam, and Indonesia. The company sourced 28% of its products from China in the past year, followed by Vietnam at 26% and Cambodia at 16%. Currently, Puma's stock price is nearing its lowest level in nine years.