Puma shares plunge 18% after full-year sales, profit outlook cut on U.S. tariffs

• Puma cut its 2025 outlook citing sector-wide and company-specific challenges, including tariffs.
• The sportswear brand said it expects full-year sales to decline by a low-double digit percentage this year.
• It also expects an operating profit loss in 2025.

Puma shares plummeted 18% Friday after the German sportwear brand posted worse-than-expected second-quarter sales and cut its full-year guidance, flagging the impact of U.S. trade tariffs.

In a preliminary updated after markets closed on Thursday, the retailer said it expects full-year sales to decline by a low-double digit percentage this year, compared with its prior forecast of sales growth in the low- to mid-single digit range.

Puma also said it expects to post an operating profit loss in 2025 — a huge swing from the 445 million euro ($523 million) to 525 million euro profit it forecast prior to assessing the impact of tariffs.

The company's shares were down 18.4% by 8:23 a.m. London time (3:23 a.m. ET).

“Amid ongoing volatile geopolitical and macroeconomic volatility, Puma anticipates that both sector-wide and company-specific challenges will continue to significantly impact performance in 2025,” the company said in a statement.

“Key factors include muted brand momentum, shifts in channel mix and quality, the impact of U.S. Tariffs, and elevated inventory levels,” it added.

The company said U.S. tariffs were expected to have a mitigated negative impact on 2025 gross profit of around 80 million euros.

Preliminary sales meanwhile fell 2% year-on-year on a currency adjusted basis in the second quarter to 1.94 billion euros ($2.27 billion), below the 2.06 billion estimated by analysts in an LSEG poll.

Quarterly adjusted operating profit, excluding one-time costs, logged a loss of 13.2 million euros. Puma incurred one-time costs, including related to its cost efficiency program, of 84.6 million euro in the second quarter.