Puma has issued a profit warning for 2025 after posting a net loss of €247 million in the second quarter and revising downward its sales and earnings guidance for the full year. The German sports company cited softer-than-expected topline development, geopolitical volatility and the anticipated impact of US tariffs as key drivers of the downgrade.
Currency-adjusted sales in the second quarter fell by 2.0 percent to €1,942 million. Currency effects had a significant negative impact, reducing reported revenue by €135 million, or 8.3 percent. The decline was driven mainly by North America (-9.1%), Europe (-3.9%) and Greater China (-3.9%), with additional weakness in the rest of APAC (-2.4%). Sales increased in Latin America (+16.1%) and EEMEA (+0.5%).
By channel, Puma’s wholesale sales declined 6.3 percent, while direct-to-consumer sales rose 9.2 percent, supported by double-digit growth in e-commerce. Footwear sales were up 5.1 percent, but this was offset by a 10.7 percent decline in apparel and a 6.4 percent drop in accessories.
The gross profit margin contracted by 70 basis points to 46.1 percent, primarily because of increased promotional activity and adverse currency movements. Adjusted EBIT fell to a negative €13.2 million, down from €115.2 million in the prior-year quarter. The company recorded €84.6 million in one-time costs, including charges related to its “nextlevel” cost efficiency program and goodwill impairments. Taxes on income amounted to €94.7 million, largely because of deferred tax asset write-offs in the US and China.
Puma expects full-year sales decline
For the first half of 2025, currency-adjusted sales declined by 1.0 percent (-4.8% reported) to €4,018 million. Adjusted EBIT dropped to €62.5 million, and the net loss came in at €246.6 million. Inventories rose 9.7 percent year-over-year (+18.3%) to €2,151 million, driven by elevated stock levels in key markets.
Puma now expects full-year 2025 currency-adjusted sales to decline by a low double-digit percentage. Previously, it had projected a low-to-mid-single-digit percentage increase. The company also now anticipates reported EBIT loss for the year, compared to its earlier EBIT forecast of €445 million to €525 million.
The revised guidance reflects continued weak brand momentum, challenges in channel mix, US tariffs and the need for further cost alignment. Puma estimates the negative gross profit impact of US tariffs in 2025 at around €80 million, despite mitigation efforts. Planned capital expenditures have been reduced to approximately €250 million, down from the original estimate of €300 million.
These results are preliminary and unaudited.
