Puma on Thursday announced that former Adidas’s sales head Arthur Hoeld will replace its chief executive Arne Freundt in a move described as “differing views on strategy execution.”
Hoeld, 55, will take over as Puma’s new CEO on July 1 and joins the brand at a time when the German brand is navigating a landscape flagged by weaker than expected sales and recent tariffs implemented by President Donald Trump in the United States.
“I am incredibly excited to join the Puma family as their new CEO,” Hoeld said in a statement. “Puma is one of the most authentic brands in our industry with an incredibly strong legacy. Their products worn by the best athletes created unforgettable moments. Sports authenticity and an exciting brand proposition will be our key focus in the future.”
Hoeld left Adidas last October after a tenure with the brand that lasted 26 years.
Meanwhile, Freundt’s exit after just two and a half years has been marked by a dip in profitability as its shares have declined by half.
In March, the company’s earnings report was well below market expectations and it indicated that sales for the remainder of the year would also be lower. No point of turnaround has been announced.
At that point the company also announced it would cut around 500 corporate jobs worldwide stirring continued speculation that the brand would face a tough battle competing with rivals. Nearly 25 percent of Puma’s sales are from the U.S. market with tepid spending a likely culprit as the consumers continue to shun non-essential purchases.
Puma’s management board now will lead the company in an interim phase and will be made up of financial chief Markus Neubrand, product chief Maria Valdes with the addition of newly appointed chief commercial officer, Matthias Baeumer — who shifts from his role as vice president of Teamsport, a quickly-growing division of the company.
However, the dip in overall profits came during a period when Puma and Adidas have seen high profile swaps of talent.
Puma’s former chief Bjørn Gulden left the company in late 2022 and in January 2023 began to lead an overhaul at Adidas, as profits later soared on the heels of its Yeezy shoe and apparel line.
Freundt, who will step down on April 11, arrived as Puma’s head in November 2022.
“It was a privilege to lead this amazing company with its iconic brand and great employees and I am proud of the achievements reached together,” Freundt said in a statment. “I am confident in Puma’s future prospects and will cheer for the best team in the industry moving forward.”
With U.S. tariffs imposed on major manufacturing outposts like China, Vietnam, Indonesia and Cambodia, Puma and its competitors will feel the looming impact of an uncertain financial climate.
About 28 percent of Puma’s products were manufactured in China last year, while Vietnam was its second largest supply nation with 26 percent.
