Puma Hammered by Tariffs and Weak Demand as Shares Tumble

Puma’s stock dropped 17% after the company slashed its full-year outlook and flagged a likely operating loss in 2025, citing U.S. tariffs and internal struggles. 

Second-quarter sales fell 2% year-on-year to €1.94 billion, missing analyst expectations of €2.06 billion. Operating profit excluding one-offs came in at a €13.2 million loss, with additional charges of €84.6 million tied to a cost-cutting program. 

The company had previously guided for full-year sales growth in the low to mid-single digits, but now expects a low-double digit decline instead.

Puma now forecasts a hit of around €80 million to 2025 gross profit due to tariffs, despite attempts to frontload deliveries and reduce Chinese imports. The sales slump was driven by a 9% fall in North America, alongside declines in Europe and Asia-Pacific. 

While Puma plans to increase prices in the U.S. starting October, it acknowledged that consumer demand remains soft, brand momentum is fading, and inventory levels are elevated, exacerbated by early shipments aimed at dodging tariff deadlines.

What Does This Mean for Me?

The company’s share price has halved year-to-date, as it battles macroeconomic headwinds and stiffer competition from rivals with stronger U.S. footprints. CEO Arthur Hoeld, who stepped in on July 1, conceded that internal missteps have contributed to the downturn. 

He hinted at a brand overhaul focused on product offerings. With expectations of continued volatility and profit pressure into next year, Puma’s reset may need to go beyond pricing tweaks and into core brand strategy.