The weak results late on Wednesday came after Adidas (ADSGn.DE) reported strong sales and profitability, highlighting the work Puma still faces to boost its brand and take a bigger slice of the $400 billion global sportswear market.
Puma shares were down 18% at 34.4 euros as of 0920 GMT, on course for their worst day ever and hitting their lowest level since March 2018.
Puma has been marketing new shoes such as the motor racing-inspired Speedcat as it tries to launch new trends in a market dominated by Adidas' retro Samba soccer trainers, but JP Morgan analysts said sales trends for the Speedcat have been weaker than expected.
Newer, fast-growing brands like On Running and Hoka have shaken up the sportswear industry, eroding the dominance of Nike and creating more competition for shelf space at top sporting goods retailers.
Puma's fourth-quarter sales grew 9.8% in currency-adjusted terms, against the 12% growth expected by analysts. Net profit last year fell to 282 million euros ($293 million) from 305 million, in part due to higher interest payments on its debt.
The company did not provide any details on Wednesday about what led to its weaker than expected sales. CEO Arne Freundt had said in November he was confident about demand heading into the year-end shopping season.
Puma launched a cost-cutting programme aiming to reach an earnings before interest and tax (EBIT) margin of 8.5% by 2027, up from 7.1% in 2024.
Barclays analysts said there was a risk the cost-cutting drive would take management's focus away from increasing sales.
"At this stage, we see more questions than answers about the path that Puma will take in the next three years to 2027," they said in a note.
Puma is scheduled to provide more detailed guidance when it publishes its full-year report on March 12.
($1 = 0.9610 euros)
