Herzogenaurach, Germany – Shares in Puma, the German sportswear giant, experienced a sharp decline of 16% on Friday following the announcement of a significant second-quarter loss. This unexpected downturn has prompted the company to issue a profit warning and dramatically revise its full-year financial outlook, sending shockwaves through the market.
Puma reported missing both its internal targets and market expectations for revenue and earnings in the second quarter. The company attributed the disappointing performance to a combination of factors, including weaker sales across all geographical regions, persistent margin pressure, increasing inventory levels, and the ongoing impact of U.S. tariffs.
For the second quarter, currency-adjusted sales fell by 2% to €1.94 billion, with reported sales experiencing an even steeper decline of 8.3%. All major markets, including North America, Europe, and Greater China, recorded negative growth. While footwear sales showed some resilience, the apparel and accessories categories underperformed against consensus expectations.
The financial results for the quarter were particularly stark, with adjusted EBIT dropping into a deficit of €13.2 million. The company recorded a net loss of €247 million for the period. Additionally, inventories saw a 10% year-over-year increase, signaling potential challenges with demand and supply chain management.
In response to these figures, Puma has sharply lowered its full-year 2025 forecast. The company now anticipates currency-adjusted sales to decline in the low double-digit percentage range, and crucially, expects full-year EBIT to be negative. This revised outlook incorporates an estimated €80 million gross profit impact from U.S. tariffs, along with other one-time charges.
Analysts at RBC Capital Markets noted that Puma is undergoing a significant “reset” under its new CEO, Arthur Hoeld. This strategic shift comes at a time when the market is becoming increasingly competitive, a situation further exacerbated by rival Nike’s impending brand relaunch, which is expected to intensify pressure on sportswear brands.