Puma (PMMAF) shares tumbled nearly 17 percent on Friday after the company reported that it will take a full-year loss in 2025, citing the impact of U.S. tariffs and weaker than forecasted quarterly sales.
The sales decline was driven by the key markets as North America fell 9.1 percent, Europe was down 3.9 percent and Greater China slipped 3.9 percent. Only Latin America and the Middle East posted positive net sales.
Puma said that footwear sales were up 5 percent but the gain was not nearly enough to compensate for the slide in earnings.
Apparel sales were down 10.7% percent and accessories fell 6.4 percent.
“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. “Key factors include muted brand momentum, shifts in channel mix and quality, the impact of U.S. Tariffs, and elevated inventory levels.”
Puma has been navigating a wave of restructuring from its very top since it announced in April that Arthur Hoeld, former Adidas’s sales chief, would replace Arne Freundt as CEO in a move described as “differing views on strategy execution.”
Hoeld, who left Adidas after 26 years, took over as Puma head on July 1 amid flagging sales at the brand and following a move in March to trim around 500 corporate jobs worldwide.
Overall, Puma says that in the second quarter sales fell 2 percent to $2.2 billion in the wake of a $289 million in net losses, which fell below analysts predictions of $2.5 billion in sales.
The news of a full-year loss is a pivot from the company’s previous outlook that it would bring in at least $522 million for the year in earnings with a top prediction of $616 million.
Puma now reveals that in response to second quarter figures — and “muted growth outlook” — for the remainder of year, it will trim initial 2025 plans to invest $350 million down to $294 million in capital spending.
