Puma, the German sportswear giant, posted a drop of over eight per cent on Wednesday, its lowest since 2018, Reuters reported. The company has blamed the tough economic environment and softer demand. "We are surprised and disappointed by the magnitude of the lower guidance (versus) our below-consensus expectations," RBC analyst Piral Dadhania said in a note to investors. Reuters reported that various retailers are struggling due to the high interest rates along with political unrest in the Middle East. "For 2024, we foresee the geopolitical and macroeconomic challenges as well as highly volatile currencies to persist. This continues to weigh on consumer sentiment and demand, especially in the first half of 2024," Puma's CEO Arne Freundt said in a statement. Puma also said that its sales in 2023 were around 8.60 billion euros, hit by a 54 per cent jump in the value of the Argentine peso in December.
