Updated February 29th, 2024 at 14:53 IST

Puma rolls out 100 million euro share buyback programme

The first phase of the share buyback programme is scheduled to commence in March 2024 and conclude on May 6, 2025.

Reported by: Business Desk
Puma | Image:Unsplash
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Puma buyback plans: The German sports apparel company Puma announced on Thursday its intention to initiate a 100 million euro share buyback programme, signalling its commitment to returning up to 50 per cent of its net income to shareholders.

According to the company's statement, Puma intends to increase its dividend distribution to shareholders, raising the range from 25-35 percent to 25-40 percent of the Group's net income.

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The first phase of the share buyback programme is scheduled to commence in March 2024 and conclude on May 6, 2025. 

During this period, Puma aims to repurchase and subsequently cancel shares worth 100 million euros ($108.43 million).

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Despite cautioning about challenging market conditions in its recent results announcement on Tuesday, wherein sportswear companies face the task of persuading financially constrained consumers to invest in trainers and tracksuits, Puma remains committed to enhancing shareholder value.

Puma's shares have trailed behind competitors Adidas and Nike over the past fourteen months, reflecting weaker sales performance compared to its industry peers. 

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However, the company's strategic move towards share buybacks underscores its proactive approach in navigating the competitive landscape and prioritising shareholder interests.

(With Reuters Inputs)

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Published February 29th, 2024 at 14:53 IST