Puma shares plunge 16% after warning of full-year loss amid U.S. tariff impact
Puma (PUMG.DE) shares tumbled 16% on Friday after the German sportswear giant warned of a full-year loss, citing declining sales and a sharp hit from U.S. tariffs. The announcement marks a troubling period for the company as it navigates weak consumer demand and inventory challenges.
The sportswear brand, known for its retro sneaker re-releases such as the Speedcat, has struggled to spark strong consumer interest in recent quarters. Newly appointed CEO Arthur Hoeld, who officially took over on July 1, acknowledged the need for significant strategic shifts, News.Az reports, citing Reuters.
“This year, 2025, will be a reset for Puma, and 2026 will be a transition year,” said Hoeld, a former Adidas sales executive brought in to revive Puma’s flagging performance. “We need to take a hard look at ourselves. The brand has tremendous potential but requires a complete reset and a new way forward.”
Hoeld plans to reassess Puma’s growth strategy, focus on improving the quality of wholesale distribution, and is set to unveil a more detailed roadmap by the end of October.
The company has been particularly vulnerable to U.S. tariffs, given its heavy reliance on Southeast Asian manufacturing. Chief Financial Officer Markus Neubrand revealed that tariffs are expected to cut Puma’s gross profit by around €80 million ($94 million) this year.
To mitigate the impact, Puma accelerated shipments from Asia ahead of impending U.S. tariff deadlines, a move that resulted in higher inventory levels and increased reliance on discounting. Most Puma products sold in the U.S. are made in Vietnam, Cambodia, and Indonesia. Neubrand added that Puma is also working to further reduce sourcing from China, currently at 10%.
In its preliminary earnings report released late Thursday, Puma forecast a drop in annual sales of at least 10% — a sharp revision from its earlier projection of low to mid-single-digit growth. Second-quarter sales, adjusted for currency effects, came in at €1.94 billion, falling short of analyst expectations. Regional performance showed North American sales down 9.1% and European sales off by 3.9%.
The company did not provide specific figures for the projected annual loss but scrapped its earlier forecast of €445–525 million in earnings before interest and tax (EBIT). Capital expenditure plans have also been cut from €300 million to €250 million for the year.
Analysts say the company’s woes go beyond tariffs and consumer fatigue. “Puma is facing an existential identity crisis in a sporting goods market that is increasingly competitive,” said RBC analyst Piral Dadhania. “At a time when Nike is staging a strong comeback for Autumn/Winter 2025, Puma lacks a clear brand direction.”
The stark warning from Puma underscores broader challenges in the global sportswear sector, including supply chain volatility, inflationary pressures, and changing consumer tastes. Hoeld’s leadership in the coming months will be closely watched as the brand seeks to regain momentum in a shifting landscape.
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