In a strategic move, German sports apparel giant Puma has unveiled a €100 million share buyback program as part of its financial initiatives. The company aims to return up to 50% of its net income to shareholders, signaling an expansion of its dividend strategy.
Puma’s adjusted dividend strategy now involves returning between 25-40% of the Group’s net income in dividends, a notable increase from the previous range of 25-35%, according to the official statement. The sports brand intends to kickstart the share buyback program in March 2024, running through May 6, 2025, during which Puma anticipates repurchasing and subsequently canceling shares worth €100 million (approx. $108.43 million).
Despite acknowledging challenging market conditions in its recent results announcement, where Puma highlighted the task of persuading financially constrained consumers to invest in sportswear, the company is taking proactive steps to enhance shareholder value. Puma’s shares have faced a comparative lag behind industry peers Adidas and Nike over the past fourteen months, primarily impacted by weaker sales performance in contrast to its competitors.
