Puma Faces a Year of Reset Amidst Falling Sales and Tariffs

Puma's shares dropped by 16% after announcing an expected annual loss due to sales decline and U.S. tariffs. CEO Arthur Hoeld termed 2025 as a reset year. U.S. tariffs could cost 80 million euros in profit. Puma plans to raise U.S. prices post-tariff impact.

Puma shares saw a steep decline of 16% following the sportswear giant's announcement of an anticipated annual loss due to declining sales and the impact of U.S. tariffs. Taking the helm as CEO in July, Arthur Hoeld emphasized the need for a strategic 'course-correct' for the company.

Looking ahead, Hoeld described 2025 as a pivotal 'reset' year, with 2026 earmarked as a transition period. Despite efforts to mitigate losses, Puma foresees U.S. tariffs potentially slashing its gross profit by approximately 80 million euros, according to Chief Financial Officer Markus Neubrand.

Already grappling with weakening sales, Puma identified a 10% decline in annual sales, missing earlier low to mid-single-digit growth projections. Second-quarter revenue also fell short of expectations. The brand continues to struggle with sales of retro sneakers like the Speedcat.

(With inputs from agencies.)