Puma shares plunged 17% Friday after the German sportswear giant cut its 2025 sales and profit outlook, citing U.S. tariffs, soft brand momentum, and internal missteps.
In a preliminary update released Thursday evening, Puma warned that full-year sales are now expected to decline by a low double-digit percentage — a sharp reversal from its previous forecast of low- to mid-single-digit growth. The company also now anticipates an operating profit loss for the year, scrapping earlier guidance of €445 million to €525 million.
By mid-morning in London, shares had pared earlier losses but remained down 17%.
“Amid ongoing volatile geopolitical and macroeconomic volatility, Puma anticipates that both sector-wide and company-specific challenges will continue to significantly impact performance in 2025,” the company said in a statement. It cited weak brand momentum, shifts in sales channels, high inventory levels, and the impact of U.S. tariffs as key headwinds.
To offset tariff-related costs, Puma said it would reduce imports from China, raise prices starting in October, and had frontloaded U.S. shipments — which contributed to elevated inventory levels. Even with these steps, the company expects tariffs to lower 2025 gross profit by approximately €80 million.
Second-quarter results came in below expectations, with currency-adjusted sales falling 2% year-over-year to €1.94 billion ($2.27 billion), missing analysts’ €2.06 billion forecast. North American sales dropped 9%, while Europe and Asia-Pacific also saw declines. Adjusted operating profit posted a loss of €13.2 million, with one-time costs totaling €84.6 million tied to efficiency measures.
New CEO Arthur Hoeld, who took over July 1, acknowledged the need for a strategic reset.
“We, as a company, need to take a hard look at ourselves,” Hoeld said on a media call. “The results the market has shown are clearly based on us as a company not delivering against our own expectations.”
Puma’s stock has lost half its value so far this year, as the company struggles with trade pressures and declining consumer demand in a fiercely competitive market.
Back in May, CFO Markus Neubrand noted the company was watching for larger U.S. brands to lead price hikes in response to tariffs. “We don’t want to be the leader in terms of the pricing change in U.S. markets,” Neubrand said. “There are other players in our industry where the U.S. is far more relevant.”
Puma attributed the downgrade to “both sector-wide and company-specific challenges,” adding that U.S. tariffs are expected to reduce gross profit by approximately €80 million this year, despite ongoing efforts to offset the hit through supply chain optimization and pricing adjustments.
The company has been under pressure to improve performance and in April appointed former Adidas executive Arthur Hoeld as CEO. He officially took the helm on July 1.
Citi analyst Monique Pollard warned of a “materially negative” market reaction, noting Puma shares are down about 44% year-to-date despite modest recent gains.
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