Adidas, Puma Performance Gap Widens as Bjorn Gulden's Influence Stabilizes
The divergence in market performance between Adidas AG and Puma SE has amplified since Bjorn Gulden transitioned between the German sportswear giants two years ago.
Puma's Challenges
Puma's shares plummeted after the company announced disappointing Q4 earnings and revised its profitability projections. This drop brings its decline to nearly 40% since Gulden left for Adidas.
Adidas's Strength
Conversely, Adidas reported positive preliminary results driven by sustained demand for retro sneakers. Analyst Olivia Townsend highlights the contrast between Adidas's strength and Puma's update, attributing it to brand momentum.
Valuation and Outlook
Despite Puma's seemingly low multiple (13x forward earnings vs. Adidas's 33x), investors remain cautious. Fund manager Swetha Ramachandran anticipates that Adidas's momentum may continue. However, she notes that Puma could see an uptick if its innovation proves successful.