Puma no longer expects to achieve the currency-adjusted sales growth previously anticipated for the remainder of 2025
After rushing shipments from Asia to beat the incoming tariffs, Puma is now facing a dilemma in the United States as it is now discounting to clear the inventory while planning to lift prices this year to offset rising costs, Reuters reported.
As the company warned of annual loss this year, Puma no longer expects to achieve the currency-adjusted sales growth previously anticipated for the remainder of 2025. The softer topline performance seen in the second quarter is expected to persist for the remainder of 2025, resulting in higher inventory levels.
In this context, Puma will continue to actively reduce inventory levels. In addition, the company also expects ongoing macroeconomic challenges, as well as the mitigated negative impact of United States tariffs, to affect performance throughout the year, it said in a statement. Currency-adjusted sales are now forecast to decline low double digit percentage.
Softer than anticipated topline development in its key markets (North America, Europe and Greater China) affected Puma’s sales and earnings performance in the second quarter. As a result, adjusted earnings before interest, tax (EBIT) came in below expectations in the second quarter. On a preliminary basis, sales for Q2 declined by 2 per cent currency-adjusted, the company said.
Inventories increased by 9.7 per cent reported and 18.3 per cent currency-adjusted and were primarily impacted by higher inventory levels in our key markets, the company highlighted in an update regarding the second quarter. In response to second-quarter performance and the muted growth outlook in the second half of 2025, Puma has revised its capital expenditure plans for the year and now expects to invest around 250 million euros in 2025. (With Reuters Inputs)
