Latest news with #Bavaria-based
Business Times
6 days ago
- Business
- Business Times
Adidas, Puma eye running shoe revival as tariff threats loom
[LONDON] Running could turn around the fortunes of Puma and Adidas as they look to make up ground lost to new upstarts before US tariffs start to bite. The German sneaker makers are renewing their focus on running shoes to drive growth after losing market share in the category to smaller rivals such as Deckers Outdoor-owned Hoka and Roger Federer-backed On Holding. Reviving demand is seen as critical for the companies, whose share prices have been battered in recent months, to cushion the impacts of potential US tariffs on key supply hubs. Running is 'the most exciting category for growth over the coming quarters as well as this one', said Deutsche Bank analyst Adam Cochrane, pointing to demand from serious runners, casual shoppers in search of comfortable soles and fashion-forward consumers seeking a unique silhouette alike. Although running has always been an important avenue for innovation across the sportswear market, Bavaria-based giants Puma and Adidas have not focused on the category 'as much as they should have' in the last five years, Cochrane said. Instead, they focused intensely on lifestyle shoes, creating an opening for new running shoe brands such as Hoka. Puma's shares have fallen 48 per cent to the year, whereas Adidas is down 10 per cent. Puma declined to comment ahead of the publication of its second quarter earnings on Jul 31. Adidas, which is set to report on Jul 30, did not respond to a request for comment. Rejuvenating its running franchise could help Puma elevate the brand, according to Cochrane. The Nitro line in particular, which was released in 2021 and features soles injected with nitrogen gas for added bounce, could be at the heart of new chief executive officer Arthur Hoeld's strategy. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Adidas cannot ignore running, either. Interest for franchises including its popular Terrace line is waning, while other retro models such as Superstar and SL 72 lack momentum, a Barclays analysis of Google Trends data shows. Running shoe lines such as the adizero and EVO SL, however, show 'strong momentum', according to Barclays analyst Carole Madjo. Those offerings could in turn could appeal to lifestyle shoppers and gain traction outside of athlete circles. Record-breaking performances by athletes donning Adidas gear and engagement on the company's Instagram account dedicated to running are boosting the brand's relevance in the running segment, which could provide the next leg of growth and lift margins, Cochrane said. Adidas is likely to upgrade its profit target when it reports later this month, he added. US rival Nike has faced similar headwinds. The company signalled its sales decline hit bottom after bringing back longtime executive Elliott Hill as CEO to turn around the brand by improving relationships with retailers, investing in product development and placing a renewed focus on sports after an overemphasis on lifestyle footwear. Running has performed especially strongly for Nike, with its Vomero shoes seeing growth across all geographies, according to Citigroup analyst Monique Pollard. Companies such as Nike and Adidas could also benefit from China's National Fitness Plan, which aims to promote exercise and could lift sportswear sales in the country, according to Bloomberg Intelligence analysts Catherine Lim and Trini Tan. 'These companies could sell pricier gear and increase sponsorship of athletic events to capture rising per-capita spending on sportswear in China,' they wrote in a note. Tariff risk Tariffs continue to loom over the outlook for sportswear giants, raising costs as they adjust supply chains. A recent trade deal with Vietnam, a critical production hub for those companies, resulted in a higher-than-expected 20 per cent levy on goods from the country, which is likely to force Nike to hike its prices, BI's Poonam Goyal and Sydney Goodman said. Further plans by US President Donald Trump to impose a 36 per cent tariff rate on Cambodia and Thailand, as well as a 40 per cent levy on Laos, all key supplier countries to the fashion industry, sent Puma and Adidas shares lower when announced. The new duties are set to come into effect on Aug 1. Doubling down on running shoes could prove a smart bet for the future. 'Once the tariffs are confirmed, there will be a price and profit impact, but once digested, we will look back at sales growth to drive earnings and running will be an important part of that,' Cochrane said. 'As the bigger brands start to get more traction in running, it will help improve investor sentiment on these names.' BLOOMBERG
DW
07-07-2025
- Science
- DW
German space capsule lost carrying ashes of 166 people – DW – 07/07/2025
A German startup is looking into how communications were lost with a memorial space flight capsule on its return to Earth. The Nyx craft was due to return ashes to bereaved families after the extraterrestrial trip. Bavaria-based startup The Exploration Company (TEC) says it is investigating the loss of a space capsule that was carrying the ashes of 166 people back to their families. The "Nyx Mission Possible" craft had been due to return the ashes to Earth — and the bereaved — after orbiting the planet twice in late June. However, an anomaly occurred and the capsule was lost during its planned re-entry. In a statement posted on professional networking site LinkedIn, TEC said it had re-established communication with the capsule upon reentry — after a standard blackout because of the heat — before losing it again. "From an orbital altitude of 550 kilometers [about 340 miles], the capsule re-entered successfully in a controlled manner, with communication established post maximum heat. Communications were, however, lost at 26km altitude, just before the transonic phase preceding the opening of the parachutes." "To better understand the outcomes, we have established an independent investigation team. Their findings will be shared with our clients, investors, and internal teams." In an earlier statement, TEC apologized "to all our clients who entrusted us with their payloads." Charles Chafer, co-founder and CEO of the Texas-based "memorial space flight" company Celestis that , said it was the first time that such a reentry had been attempted. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video "As a result of this unforeseen event, we believe that we will not be able to recover or return the flight capsules aboard. We share in the disappointment of our families, and we offer our sincerest gratitude for their trust." "Though we currently believe that we cannot return the flight capsules, we hope families will find some peace in knowing their loved ones were part of a historic journey, launched into space, orbited Earth, and are now resting in the vastness of the Pacific, akin to a traditional and honored sea scattering." As well as the human remains, the Nyx capsule had been carrying cannabis plant material and seeds for a citizen science project to study the viability of growing cannabis on Mars.
Local Germany
26-03-2025
- Automotive
- Local Germany
How to know if you're getting a good severance package in Germany
If you've had your eye on the business headlines in Germany lately it looks like people are losing their jobs left and right. Many of Germany's leading car makers – such as Volkswagen , Mercedes, BMW , Audi and more – have announced plans to cut costs by letting go of tens of thousands of workers over the coming years. And it's not only car makers that are looking to downsize. Bavaria-based sportswear brands Adidas and Puma – both of which hire significant proportions of foreign workers – are also planning layoffs. READ ALSO: German unemployment hovers under 3 million as economy stagnates Is Germany really on course to cut 140,000 auto industry jobs in a decade? Workers in Germany who find their jobs on the chopping block are often offered a severance package, which can give the freshly unemployed a few months of breathing room before they need to land a new job or seek out other sources of income. But the quality of severance packages, if offered at all, vary from company to company and are often negotiable. Workers experiencing their first layoff may be in the dark about whether they're being offered a good deal. So here's what you need to know about severance pay in Germany, as told by a legal counsellor who focuses on employment law. Are companies required to offer severance? In Germany employers are not actually required to provide severance packages in all cases. However, employees are entitled to severance pay when the Dismissal Protection Act ( Kündigungsschutzgesetz ) applies, which is often the case when a company engages in widespread job cuts as a cost-cutting measure. Severance pay may also be required when a works council has negotiated severance terms as part of a social plan. Or if the works council has negotiated a collective bargaining agreement that stipulates severance payments. In other cases, employers may voluntarily offer a severance package to help shield themselves from other liabilities related to letting an employee go. These packages generally come with an agreement that the employee won't take further action against the company for their termination. For these reasons, receiving a severance package is relatively common for workers in Germany, and especially for those whose lay-off comes as part of a company's cost-cutting plan. ILLUSTRATION: Photo by Mathieu Stern on Unsplash 'Severance pay is offered at the employer's discretion, or as part of a negotiated (judicial) agreement," Mauricio Foeth, of counsel at international labour and employment law firm Fisher Phillips, told The Local in an email. From an employee's point of view, a good severance package can be a boon, allowing them to walk away with a bit of a financial cushion. However, ensuring a deal for oneself can be tricky, especially for people who haven't navigated the process before. For this reason Foeth urges any readers currently navigating a severance negotiation to seek legal advice from a lawyer, as well as tax advice from a tax expert. Advertisement What's a good deal for a severance package? Severance pay is essentially determined by an agreement between an employer and an employee, so there are different ways to calculate it. Foeth suggests a common basic calculation: Severance pay = Half of the gross monthly salary (0.5) × Number of years of employment. However, depending on an employee's negotiation skills and leverage, they could feasibly increase the rate from a half month's salary per year up to around one full month's salary per year, Foeth added. Based on this calculation an employee earning a gross salary of €3,000 per month, who has been with a company for ten years, might expect an initial severance pay offer to be between €15,000 and €30,000. However, this calculation can change depending on your industry, your job market prospects, your marital status and a number of other factors. Advertisement Larger firms in Germany that are planning widespread layoffs will often negotiate a Sozialplan (social plan) with the works council, which can determine the terms for severance calculations. In these cases, they may set-up a points-based severance calculation instead of using the generic calculation above. A points-based severance pay approach would also be determined based on your salary and time spent at a company, but it could also include factors like age, marital status or disability, etc. The argument for a points-based approach is that it allows a company to more fairly factor in employees' living situations when calculating severance. But these calculations can also get quite complicated, depending on how many factors are involved. If you're unsure if a points-based severance offer is a good deal, comparing the total amount offered back to the basic calculation above could be a useful place to start. Lastly, keep in mind that severance pay is usually offered as a gross amount, so taxes and social security contributions will be deducted. Advertisement Are there any disadvantages to accepting severance? From the position of a soon-to-be unemployed worker hoping to get the best severance deal, it's important to keep a couple of things in mind. Employees should carefully consider a potential severance package before signing. Photo: picture alliance/dpa/dpa-tmn | Christin Klose First, note that in accepting severance pay from your employer you may be waiving your entitlement to Arbeitslosengeld I, or short-term unemployment money for up to three months. Laid-off workers who are entitled to unemployment insurance collect 60 percent of their last salary (or 67 percent for people with kids) during this time. So at the very least you'll want to make sure your severance pay exceeds this amount (assuming you're entitled) before signing anything. READ ALSO: What happens to your work permit if you lose your job in Germany? Second, you'll want to carefully consider what else you are effectively giving up by accepting the severance pay. Keep in mind that from an employer's point of view, the severance they are willing to offer is typically an amount that they have calculated is less than they might otherwise pay out - either if they kept you on as a worker for longer, or that they could be liable for if a labour dispute arose. 'Employers certainly consider the cost and benefit of a severance package,' Foeth told The Local, adding that when employers lose a labour dispute for wrongful dismissal, they pay the employee's full wage from the end of the notice period until the final decision of the labour court. 'This is why employers often prefer to negotiate a termination agreement, which provides legal and planning security.' Advertisement Of course, bringing a wrongful termination claim (or other litigation) against your former employer always comes with its own set of risks, as well as significant effort and costs. For that reason, there's no simple answer for whether accepting a severance package is a good deal, as it really depends on the specific case. Foeth emphasises that the best way to ensure a good deal for yourself is to 'consult with a labour lawyer to make sure the deal is fair and to explore if there is any legal recourse for a better offer.' READ ALSO: The jobs where employees earn the most (and least) in Germany Please note that this article is just intended as guidance and not considered professional or legal advice. We recommend that you consult with a legal advisor or lawyer for advice tailored to your situation.
