Puma shares plunge 15% after full-year sales, profit outlook cut on U.S. tariffs

Puma shares plummeted arsenic overmuch arsenic 18% Friday aft the German sportwear marque posted worse-than-expected second-quarter income and chopped its full-year guidance, flagging the interaction of U.S. commercialized tariffs.

In a preliminary updated aft markets closed connected Thursday, the retailer said it expects full-year income to diminution by a low-double digit percent this year, compared with its anterior forecast of income maturation successful the low- to mid-single digit range.

Puma besides said it expects to station an operating nett nonaccomplishment successful 2025 — a immense plaything from the 445 cardinal euro ($523 million) to 525 cardinal euro nett it forecast anterior to assessing the interaction of tariffs.

The company's shares pared losses somewhat to commercialized down 15% by 9:26 a.m. London clip (4:26 a.m. ET).

"Amid ongoing volatile geopolitical and macroeconomic volatility, Puma anticipates that some sector-wide and company-specific challenges volition proceed to importantly interaction show successful 2025," the institution said successful a statement.

"Key factors see muted marque momentum, shifts successful transmission premix and quality, the interaction of U.S. Tariffs, and elevated inventory levels," it added.

The institution said it was reducing imports to the U.S. from China and that it planned to rise prices from the 4th fourth starting successful October, but said it inactive expects U.S. tariffs to person a mitigated antagonistic interaction connected 2025 gross nett of astir 80 cardinal euros.

CEO Arthur Hoeld, who was appointed connected July 1 to revive the ailing sportswear brand, nevertheless acknowledged interior failings and said the institution request to look astatine its merchandise offering arsenic portion of a wider marque reset.

"We arsenic a institution request to instrumentality a hard look astatine ourselves, the results the marketplace has shown are intelligibly based connected america arsenic a institution not delivering against our ain expectations," helium said during a media telephone aft the earnings.

Puma's preliminary income fell 2% year-on-year connected a currency adjusted ground successful the 2nd 4th to 1.94 cardinal euros ($2.27 billion), beneath the 2.06 cardinal estimated by analysts successful an LSEG poll.

Quarterly adjusted operating profit, excluding one-time costs, logged a nonaccomplishment of 13.2 cardinal euros. Puma incurred one-time costs, including related to its outgo ratio program, of 84.6 cardinal euro successful the 2nd quarter.

Puma.

The income driblet was led chiefly by a 9% autumn successful North America and declines successful Europe and Asia-Pacific.

Puma's stock terms has halved truthful acold this twelvemonth arsenic the retailer has confronted commercialized pressures and declining user request successful the highly competitory sportwear market.

The institution said backmost successful May that it anticipated industry-wide terms hikes arsenic a results of commercialized tariffs, but noted that it expected brands with greater dominance successful the U.S. to pb the charge.

"We don't privation to beryllium the person successful presumption of the pricing alteration successful U.S. markets," Chief Financial Officer Markus Neubrand said astatine the time. "There are different players successful our manufacture wherever the U.S. is acold much relevant."