Adidas shares under pressure: What does this mean for investors and how does CEO Gulden react?

Adidas shares under pressure: What does this mean for investors and how does CEO Gulden react?

According to a report by www.finanzen.net, adidas and PUMA shares have come under pressure. Adidas shares temporarily lost 3.45 percent to 190.20 euros after gaining a good 28 percent in the year-end rally since the October low. adidas CEO Björn Gulden expressed caution about the company's growth in an interview, emphasizing that 2024 should be a year of growth. In addition, the topic of possible forced labor in production in China was raised in the local press, which also led to a drop in PUMA shares.

Gulden did not specify a profit margin target in the interview and said that a very high profit margin of over 10 percent would be the wrong goal. Under his predecessor, Adidas set the goal of improving the adjusted EBIT margin to 12 to 14 percent by 2025. However, the DAX group had to lower its margin forecasts quarter after quarter in 2022, after originally targeting 10.5 to 11.0 percent. In the third quarter, the operating profit margin was 6.8 percent, compared to 8.8 percent a year earlier.

These developments suggest that both adidas and PUMA are facing challenges that are impacting their share prices. adidas CEO Gulden's cautious comments could lead to further investor uncertainty, while reports of possible forced labor in production in China could also shake confidence in PUMA. These factors could lead to increased volatility and a decline in the stock prices of both companies.

Overall, it is important to closely monitor developments at adidas and PUMA and consider the potential impact on the market and financial industry.