Puma Slashes Outlook, Cuts Spending Amid Tariffs

Puma has sharply downgraded its 2025 financial outlook, now expecting an annual loss and at least a 10% decline in currency-adjusted sales, largely due to weak performance in North America, Europe, and Greater China, as well as a projected €80 million gross profit hit from new U.S. tariffs. The company's shares fell 16% after the announcement. CEO Arthur Hoeld, appointed in April, called this period a 'reset' and stressed the need for a new strategy amid rising competition from Nike and Adidas. In response to the downturn, Puma is reducing capital expenditure by €50 million and scaling back investment plans. The company continues efforts to counteract challenges through pricing and supply chain measures. While direct-to-consumer sales increased, wholesale channels declined, raising concerns over Puma's market position.