Puma Warns of Low-Double Digit Sales Decline, Operating Loss in 2025 Due to US Tariffs

Puma shares plunged 18% after the sportswear brand posted worse-than-expected Q2 sales and cut its full-year guidance due to US tariffs. Puma expects full-year sales to decline by a low-double digit percentage and an operating profit loss in 2025. The company anticipates the US tariffs to have a mitigated negative impact on 2025 gross profit of around €80m. Preliminary Q2 sales fell 2% YoY to €1.94bn, below the estimated €2.06bn.

German sportswear giant Puma (PUMG.DE) has revised its 2025 financial outlook, citing weaker-than-expected sales and the anticipated impact of U.S. tariffs. The company's shares plunged by 18% following the announcement, as investors reacted to the disappointing Q2 sales and the revised guidance for the year.

Puma's full-year outlook now expects currency-adjusted sales to decline by a low double-digit percentage rate, down from the earlier forecast of low to mid-single-digit growth. The company reported second-quarter sales of €1.94 billion, falling 2% year-over-year (YoY) and missing analysts' expectations of €2.09 billion [1].

The primary factors contributing to Puma's revised outlook are the U.S. tariffs, which are expected to reduce the company's 2025 gross profit by approximately €80 million. Despite mitigation efforts such as supply chain optimization and pricing adjustments, the tariffs are anticipated to have a significant negative impact on the company's financial performance [1].

The grim outlook raises concerns over Puma's ability to compete with larger rivals such as Adidas (ADSGn.DE) and Nike (NKE.N), as well as newer, fast-growing brands like On Running and Deckers Outdoor's Hoka [1]. The company expects a loss on earnings before interest and taxes for 2025 and has revised its capital expenditure plans for the year to around €250 million [1].

Puma's shares opened down 18% on Friday after the company reported its earnings and provided the revised outlook. The new CEO, Arthur Hoeld, who took over in April, will need to navigate these challenges and turn around the company's performance [2].

References:
[1] https://www.reuters.com/business/puma-lowers-full-year-outlook-weaker-sales-us-tariffs-2025-07-24/
[2] https://www.reuters.com/business/puma-shares-dive-after-warning-full-year-loss-us-tariff-impact-2025-07-25/