PUMA joins the companies suspending dividend
The company now focuses on managing the short-term challenges as well as possible
Stocks impacted: PUMA (PUM)
German sportswear maker proposed to suspend its 2019 dividend, citing the impact of the coronavirus pandemic. Apart from China, Japan and South Korea, almost all of PUMA's own stores as well as those of its partners have been temporarily closed while its e-commerce business accounts for less than 10% of the whole business, which resulted in a dramatic decline in net sales and cash inflow. The company now focuses on managing the short-term challenges as well as possible, but without hindering the midterm momentum. Amid the virus crisis, PUMA is reducing costs and cash outflow wherever possible as well as securing additional financing to ensure that it can sustain the value chain in a difficult period. On the news about dividend, the sportswear maker’s stocks declined by 2.7%.
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