COVID-19. PUMA in trouble? The company will suspend dividend payments

As published by the specialized portal WORLD FOOTWEAR, given the strong negative impact that COVID-19 crisis is causing on the German brand, it decided to defer dividend payments for fiscal year 2019 to its shareholders.

Most PUMA stores and partners worldwide, including China, Japan and South Korea, are temporarily closed. Also, the company's electronic commerce, which operates in almost all markets, represents less than 10% of the business, which has caused a significant decrease in sales and cashflows.

For this reason, in the statement, PUMA reported that “it is reducing costs and cash outflow whenever possible, as well as securing additional financing to ensure that, together with our partners, we can maintain the value chain in this period. The goal is to overcome this crisis together. Now we focus on managing the short and long term as best as possible, but without hindering the company's momentum."

In addition to deferring dividend payments, the company announced the suspension of 100% of the Board of Directors salary and the reduction of senior management salaries by 25%.

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