Puma faces crisis as CEO is ousted amidst plummeting sales

In the wake of impressive growth during the pandemic, many athleisure brands, including Puma, have recently witnessed a dramatic decline in sales. With the global market for comfortable clothing, such as tracksuits and yoga pants, shifting back to traditional apparel and consumer preferences evolving, Puma's financial health has taken a significant hit. In April 2025, amid this downturn, Puma removed its CEO, Arne Freundt, as part of a strategy to remedy the company's faltering performance. This management change comes during a time when Puma's market value has significantly decreased, dropping to a mere one-fifth of its previous high seen post-pandemic. Other competitors like Nike and Under Armour have experienced similar struggles, with their values also sharply dropping. Meanwhile, Canadian brand Lululemon saw temporary success but has also started to experience recent stock declines, indicating broader trends in the athleisure market. Simultaneously, the sector faces increasing competition from newer entrants like Hoka and On, which are enticing consumers with fresh offerings. In addition to these challenges, Puma, like many other apparel companies, is confronted by external pressures such as tariffs imposed by political figures like Donald Trump. Many of its products are manufactured in countries severely affected by these tariffs, complicating their supply chain and pricing strategies. Finally, industry experts warn that reducing investments in brand-building and innovation at this critical time could further jeopardize Puma's long-term viability, emphasizing the need for strategic moves to regain momentum in a rapidly changing market landscape.