Firm at the entrance of the Puma store in the center of Manhattan.
Erik McGregor | LIGHTROCKET | Getty images
Puma’s actions collapsed 18% on Friday after the German sportswear brand recorded worse sales of what was expected in the second quarter and reduced its full -year guide, marking the impact of US trade tariffs.
In an updated preliminary after the markets closed on Thursday, the retailer said that sales of the whole year decrease in a double digit percentage under this year, compared to their previous prognosis of the growth of sales in the range of low -to -medium digit digits.
Puma also said that he hopes to publish a loss of operational profits in 2025, a large swing of the 445 million euros ($ 523 million) to 525 million euro earnings of earnings that forecast before evaluating the impact of tariffs.
The shares of the company fell 18.4% at 8:23 am London time (3:23 am et).
“In the midst of geopolitical and macroeconomic volatility continuous volatile, Puma anticipates that the challenges both in the sector and specific of the company will continue to significantly affect the performance in 2025,” the company said in a statement.
“The key factors include the impulse of the brand off, changes in the mixture and quality of the channel, the impact of US tariffs and high levels of inventory,” he added.
The company said that American tariffs were expected to have a mitigated negative impact on the gross gain of 2025 of around 80 million euros.
Meanwhile, preliminary sales fell 2% year after year on an adjusted base in the second quarter to 1.94 billion euros ($ 2.27 billion), below the 2.06 billion estimated by analysts in an LSEs survey.
The quarterly adjusted operational benefit, excluding unique costs, recorded a loss of 13.2 million euros. Puma incurred unique costs, including those related to its profitability efficiency program, of 84.6 million euros in the second quarter.
The fall in sales was mainly directed by a 9% drop in North America and decreases in Europe and Asia-Pacific.
The price of Puma shares has been reduced by half this year, since the retailer has faced commercial pressures and reducing consumers’ demand in the highly competitive sportswear market.
The company said in May that it anticipated price increases throughout the industry as results of commercial tariffs, but noted that it hoped that brands with greater domain in the United States lead the position.
“We do not want to be the leader in terms of the change in prices in US markets,” said financial director Markus Neubrand at that time. “There are other players in our industry where the United States is much more relevant.”
This developing story is being updated.
