German sportswear manufacturer Puma indicated on Thursday that it anticipates remaining in the red this year, following a net loss for 2025 that was narrower than initially forecast.

The company has also decided to scrap its dividend for the 2025 fiscal year. This move comes after it distributed a dividend of 0.61 euros per share to shareholders the previous year.

Under the leadership of its new Chief Executive Officer, Arthur Hoeld, Puma is navigating a significant turnaround. The company's performance has been hampered by weak demand for its sportswear and Speedcat sneakers, compounded by industry-wide challenges stemming from U.S. tariffs on imported goods.

Puma projects an operating loss for 2026 to be in the range of 50 million to 150 million euros ($59 million to $177 million).

According to a company statement, this forecast includes one-time impacts associated with the implementation of a cost-efficiency program.

For the full year 2025, the company reported a loss before interest and taxes (EBIT) of 357.2 million euros. This marks a stark contrast to the profit of 548.7 million euros recorded in the prior year.

However, this result was slightly better than the anticipated loss of 374.3 million euros, based on a consensus estimate from analysts compiled by the company.

Puma expects its sales to continue declining this year, albeit at a slower pace, with a projected decrease in the low-to-mid single-digit percentage range. In 2025, sales fell by 8.1 percent year-on-year to 7.3 billion euros.

Last month, Anta Group finalized an agreement to become Puma's largest shareholder, acquiring a 29 percent stake. Anta has committed to assisting Puma in boosting its sales within the Chinese market.