Puma has lowered its full-year 2025 outlook, blaming sluggish revenue growth and pending US tariffs as major hurdles.
The German sportswear chain now expects a low double-digit percent decline in currency-adjusted sales for the year. That’s a drastic change from its previous estimate in March that it would see modest sales gains in the low-to-mid-single digits. The company also revealed layoffs and highlighted uncertainty in the US market at the time.
For Q2, Puma generated currency-adjusted revenue of US $ 2.28 billion, below analysts’ estimates of US $ 2.27 billion, based on LSEG.
Even after putting in place initiatives like supply chain efficiencies, price strategies, and better coordination with partners, Puma is projecting the tariffs mentioned by President Donald Trump to cost its 2025 gross profit around US $ 86.8 million.
This downward revision, along with disappointing quarterly performance, questions Puma’s competitiveness in comparison to industry giants such as Adidas and Nike, as well as quickly rising challengers such as On Running and Hoka, controlled by Deckers Outdoor.
In the future, the firm now estimates an operating loss (EBIT) for the year and has cut back its capital expenditure plans to around US $ 294 million.
