Stock market: Porsche laughs, Puma cries

Porsche, which was floated on the stock exchange on 29 September, will join the Dax, Frankfurt’s leading index, on 19 December. And this in place of Puma.

While the German luxury car manufacturer inspires confidence in investors, the same cannot be said of its sports equipment manufacturer compatriot.

Introduced at a price of 82.50 euros, the Porsche share has soared by nearly 30% in less than three months. The parent company, the Volkswagen group, received around 9 billion euros (8.9 billion Swiss francs) in exchange for the 12.5% of its subsidiary’s capital.

This impressive IPO was hailed by the business press as one of the largest ever in Germany. It also stands out as the largest stock market transaction in Europe in the last decade.

An attractive business model

Lutz Meschke, Porsche‘s financial director, sees this as proof that “even in a difficult environment”, its “business model is robust and attractive to investors”.

The cash flow generated will facilitate the necessary investments towards an electric and autonomous car model.

On 19 December, Porsche will join the 40 leading stocks in the German economy on the Dax. Among them are other well-known automotive stocks, such as Volkswagen, the holding company Porsche SE (which controls the manufacturer and its parent company), Mercedes-Benz, BMW, Daimler Truck, etc.

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But by making its way onto the Dax, Porsche is also pushing Puma out. The latter is downgraded in the MDAX, the stock market index for medium-sized companies in Germany. Like many textile players, the sportswear and accessories brand is facing headwinds. Inflation is weighing on raw material prices and consumer purchasing power, and thus on sales. The crisis has been compounded by the defection of the company’s captain, its managing director Bjørn Gulden. The transfer of the former professional footballer to competitor Adidas was announced in early November.

Featured photo : © Porsche

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Hélène Cougot

Passionnée depuis son plus jeune âge par l’art et la mode, Hélène s’oriente vers une école de stylisme, l’Atelier Chardon-Savard à Paris, avec une option Communication. Afin d’ajouter des cordes à son arc, elle décide de compléter sa formation par un MBA en Management du Luxe et Marketing Expérientiel à l’Institut Supérieur de Gestion à Paris dont elle sort diplômée en 2020. Elle a notamment écrit des articles lifestyle et beauté pour le magazine Do it in Paris et se spécialise en rédaction d’articles concernant le luxe, l’art et la mode au sein du magazine Luxus Plus.********** [EN] Passionate about art and fashion from a young age, Hélène went to a fashion design school, Atelier Chardon-Savard in Paris, with a Communication option. In order to add more strings to her bow, she decided to complete her education with an MBA in Luxury Management and Experiential Marketing at the Institut Supérieur de Gestion in Paris from which she graduated in 2020. She has written lifestyle and beauty articles for Do it in Paris magazine and specializes in writing articles about luxury, art and fashion for Luxus Plus magazine.