Summary
- Puma’s shares fell 16% to 20% on July 25, 2025, after a profit warning and forecast of a full-year loss.
- The company cited weak sales, low brand momentum, excess inventory, and US tariffs as main reasons for the outlook cut.
- Puma now expects an operating loss for 2025 instead of the earlier projected profit of €445–525 million.
- Full-year revenue is forecasted to drop 11% to 14%, down from a low to mid-single-digit growth expectation.
- New US tariffs by President Trump are expected to cut Puma’s gross profit by about €80 million in 2025.
- Q2 sales fell 2% year-over-year to €1.94 billion, below the expected €2.06 billion.
- The company reported a Q2 net loss of €247 million, including restructuring and cost-cutting charges.
- Capital expenditure for 2025 has been lowered from €300 million to €250 million.
- Puma faces competitiveness challenges from Adidas, Nike, and rising brands like On Running and Hoka.
- CEO Arthur Hoeld, recently appointed, is under pressure to reset Puma’s strategy amid an “existential identity crisis.
Puma’s shares tumbled drastically on July 25, 2025, after the company issued a stark profit warning, slashed its full-year financial forecast, and cited significant headwinds from US-imposed tariffs, currency fluctuations, and sluggish sales momentum. The magnitude of the drop—up to 20% in early trade—triggered alarm across financial markets and cast a shadow over the global sportswear sector.
Why Did Puma’s Shares Plunge?
According to Reuters, Puma’s stock lost about 16% of its value on Friday after the sportswear brand revised its annual outlook from an expected profit to an anticipated loss, citing weaker sales and adverse effects of new US tariffs. As MarketWatch detailed, the fall came after Puma “cited muted brand momentum, U.S. tariffs and elevated inventories as reasons why it’s now forecasting a loss on the year”.
By 8:00 a.m. London time, CNBC reported that the stock was down by 18.4%, its steepest one-day loss in recent history, reaching multiyear lows approached only in March 2025. European exchanges saw Puma as the worst performer in the STOXX 600 index, underlining the shock across markets.
What Triggered Puma’s 2025 Profit Warning?
As summarized by Investing.com, Thursday night’s announcement detailed that disappointing second-quarter results, worsened by an unfavorable macroeconomic context and inventory pileups, forced a cut in the company’s full-year guidance. Puma’s official company statement on July 24, 2025, revealed:
“Softer than anticipated topline development in our key markets (North America, Europe and Greater China) affected Puma’s sales and earnings performance in the second quarter”.
Puma had previously projected full-year profit (EBIT) between €445 million and €525 million, but now expects an operating loss for 2025. Full-year revenue guidance was adjusted to a decline of 11–14%, a reversal from projections of low- to mid-single-digit growth.
How Did US Tariffs and Currency Fluctuations Affect Puma?
Journalists at FashionNetwork USA highlighted that Puma expects President Donald Trump’s new US tariffs to reduce its gross profit for 2025 by around €80 million. The tariffs, which target sportswear imports, came into effect earlier this year and have led brands to revise their pricing and supply chain strategies. Kerstin Neuber, Senior Director of Corporate Communications at Puma, confirmed:
“We are proactively mitigating tariff impacts through supply chain optimization and continued collaboration with partners, but headwinds remain substantial”.
Furthermore, Puma pointed to unfavorable currency shifts, particularly euro strength, as contributing factors to the decline in profitability, partially due to higher costs for raw materials and weakening foreign revenues.
What Are the Key Financial Figures Behind Puma’s Warning?
As reported by Fibre2Fashion and FashionNetwork, Puma’s Q2 sales dropped 2% year-on-year to €1.94 billion (about $2.28 billion), missing analyst expectations of €2.09 billion. Net loss for the quarter stood at €247 million, weighed down by €84.6 million in one-time restructuring charges linked to its “nextlevel” cost efficiency program.
Puma’s gross profit margin shrank by 70 basis points to 46.1% due to a greater reliance on promotional activity to clear inventory and currency-related headwinds. CEO Arthur Hoeld, noted in a statement provided to MarketScreener,
“The weaker-than-expected performance in H1, high inventory levels, and the impact of new US tariffs on our accounts have significantly altered our outlook for 2025”.
How Has Puma Adjusted Its Business Strategy?
Puma’s press release confirmed that in response to Q2’s performance and muted growth outlook for the second half of 2025, “capital expenditure plans have been revised down to around €250 million, from the previous €300 million target”. The cost-saving push includes continuing efforts to actively reduce inventories and streamline operations.
Additionally, as noted by Reuters and CNBC, Puma continues its “nextlevel” cost efficiency initiative, with significant one-time costs already recorded this year. The group reported that direct-to-consumer (DTC) sales, especially via e-commerce, posted double-digit growth, partially offsetting wholesale declines.
What Is Affecting Puma’s Sales by Region and Product Category?
According to Fibre2Fashion, North America sales declined by 9.1% year-on-year, Europe by 3.9%, and Greater China by 3.9%. However, sales in Latin America and the EEMEA region (Eastern Europe, Middle East, Africa) rose by 16.1% and 0.5%, respectively. Wholesale business experienced a drop of 6.3%, while DTC sales climbed 9.2%.
In terms of product categories, footwear registered a 5.1% increase, but apparel fell by 10.7% and accessories by 6.4%.
What Do Analysts and Industry Observers Say?
RBC analysts, cited by MarketScreener, believe that new CEO Arthur Hoeld may be employing drastic measures to “clean house” before pursuing a potential reset of the brand in 2026. The analysts described Puma as facing an “existential identity crisis” at a time when Nike is preparing to launch a major comeback in the Fall/Winter 2025 season and smaller rivals like On Running and Hoka are making gains.
MarketWatch’s coverage referenced the challenge: “Tariffs are the least of its problems,” highlighting muted brand momentum, an unfavorable channel mix, and high inventory as larger contributors to Puma’s downward revision.
How Has Puma Responded to This Crisis?
Arthur Hoeld, CEO of Puma, issued a statement, as reported by CNBC and Reuters:
“Given the persistent geopolitical and macroeconomic instability, we foresee that both industry-wide and specific challenges will continue to profoundly influence our performance in 2025. Key contributors to this outlook include subdued brand momentum, changes in channel mix and quality, the repercussions of U.S. tariffs, and high inventory levels”.
Puma said it will focus on “actively reducing inventory, managing costs, and enhancing channel quality” to address the difficult business environment ahead.
What’s Next for Puma?
Industry observers underline that Puma’s shock downgrade will intensify scrutiny of its playbook for the rest of 2025. The brand is under pressure to restore investor confidence while managing macroeconomic and competitive challenges. Hoeld’s leadership and the company’s ability to adapt will be closely watched by investors and analysts as Puma attempts to rebound after a bruising first half of the year.