Puma Shares Tumble 18% After Slashing Sales and Profit Forecast Due to U.S. Tariffs

On July 25th, shares of German sportswear giant Puma plunged 18%, following a surprise announcement that the company’s Q2 sales missed expectations and that it had cut its full-year guidance, citing the growing burden of U.S. trade tariffs.

 Sales Decline, Profit Outlook Turns Negative

In a preliminary update released Thursday after market close, Puma said it now expects full-year 2025 sales to decline by a low double-digit percentage, a stark reversal from its earlier forecast of low to mid-single-digit growth.

More concerning, the company anticipates a loss in operating profit in 2025 — a major shift from the previously projected profit range of €445 million to €525 million, prior to factoring in tariff impacts.

 For Q2, sales declined 2% year-on-year on a currency-adjusted basis, reaching €1.94 billion — well below analysts’ expectations of €2.06 billion, according to LSEG.

 North America Leads the Downturn

Sales in North America dropped by 9%, while revenue also fell across Europe and the Asia-Pacific region. Puma is feeling the pressure from weak consumer demand and intensifying competition in the global sportswear market.

Additionally, the company absorbed €84.6 million in one-time costs, primarily tied to its ongoing cost-efficiency program, contributing to an adjusted operating loss of €13.2 million in Q2.

 U.S. Tariffs Expected to Cut Gross Profit by €80 Million

Puma warned that U.S. tariffs will negatively impact gross profit by approximately €80 million in 2025. The company also highlighted sluggish brand momentum, shifts in retail channel quality, and elevated inventory levels as key challenges moving forward.

 A Stormy Outlook in a Volatile Economy

Amid ongoing geopolitical and macroeconomic volatility, Puma said both industry-wide and company-specific headwinds will continue to weigh heavily on performance in 2025.

Notably, Puma’s share price has halved since the start of the year, underscoring investor concerns over trade-related cost pressures and waning consumer demand, particularly in the U.S.

Back in May, Puma acknowledged that industry-wide price hikes could be expected due to tariffs, but stressed it did not want to lead that trend.

“There are other players in our industry where the U.S. is far more relevant,” said CFO Markus Neubrand.

Puma's revised outlook reflects mounting pressure from global trade tensions and shifting consumer dynamics. Investors and analysts will be watching closely to see how the company adapts and positions itself amid these headwinds.