MW Puma shares rocked by profit warning. Tariffs are the least of its problems.

By Steve Goldstein

Puma shares lost nearly a fifth of their value on Friday as the German apparel maker cited "muted brand momentum," U.S. tariffs and elevated inventories as reasons why it's now forecasting a loss on the year.

Puma (DE:PUMA) said it's now expecting sales growth, in currency-adjusted terms, to fall by a low double-digit percentage, versus previous expectations of a low- to mid-single digit decline.

Puma said it's now forecasting a loss before interest and tax for the year, after previously expecting earnings before interest and tax between EUR445 million ($523 million) and EUR525 million. Analysts had forecast an EBIT (earnings before taxes and interest) of EUR445 million for the year, according to Visible Alpha.

Tariffs are expected to hit gross profits by EUR80 million this year, Puma said, a number that includes mitigating actions like supply-chain optimization and price hikes.

"Puma is facing an existential identity crisis in terms of relevance in a sporting goods industry that is more competitive and at a time when the largest player Nike is staging its come-back from Autumn/Winter '25," said Piral Dadhania, an analyst at RBC Capital.

Puma's lowered guidance came after a second quarter in which it lost EUR247 million on a sales decline of 8% to EUR1.94 billion. At constant currencies, Puma sales fell 2%.

Inventories jumped by 10% to EUR2.15 billion. Puma said it will actively look to reduce inventories.

Shares of cross-town rival Adidas (XE:ADS) slipped by 2%.

-Steve Goldstein

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July 25, 2025 03:37 ET (07:37 GMT)

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