Puma Slashes Outlook as New CEO Confronts Weak Demand, Tariffs
The German company now expects to report a loss in adjusted earnings before interest and taxes this year, according to a statement late Thursday that showed disappointing preliminary second-quarter results.
That's a marked downgrade from Puma's previous target, which called for profits by that metric to reach a range of €520 million ($611 million) and €600 million. It's also far below the average analyst estimate, which foresaw a €489 million gain for the year.
Puma cited weaker sales in North America, Europe and Greater China during the second quarter and said that trajectory will probably continue through the rest of year, causing high inventory levels. The company missed estimates on both sales and profit in the second quarter.
It now expects currency-adjusted sales to decline by a low double-digit percentage this year. The previous forecast called for growth in the low- to mid-single-digit percentage range.
The company anticipates US tariffs to hurt gross profits this year by about €80 million.
Since arriving at Puma on July 1, Chief Executive Officer Arthur Hoeld is looking to reset a brand that's struggled in recent years to connect with consumers. The Adidas veteran took over after Puma's former CEO Arne Freundt left following a string of profit warnings and a disagreement with the supervisory board over the company's strategy.
Puma was banking much of its performance this year on being able to sell between four and six million pairs of the thin-soled Speedcat sneaker and related models like the Ballet shoes. That push was part of Freundt's broader effort to deepen Puma's profile on higher-end sneakers and sports gear.
Puma has struggled in recent years to roll out a product that's capturing the zeitgeist. Meanwhile, cross-town rival Adidas has excelled at that, especially with its retro Samba and Gazelle sneakers. Hoeld helped oversee the rollout of those shoes while at Adidas earlier this decade.
More stories like this are available on bloomberg.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
19 minutes ago
- Business Standard
Rupee hits five-month low on US tariff warning, oil spike; ends at 87.42/$
The Indian Rupee weakened to its lowest level in over five months on Wednesday as sentiment soured following higher-than-expected tariff remarks by the US President and a surge in oil prices. The domestic currency closed 60 paise lower at 87.42 against the dollar on Wednesday, the lowest level since February 28 this year, according to Bloomberg. The local unit has depreciated 1.9 per cent so far this month and 2.12 per cent in this calendar year so far. This is so far the worst monthly fall since September 2022, when it fell 2.32 per cent. The weakness in currency came after Trump's statement that India may face a tariff rate of 20 to 25 per cent. He, however, cautioned that the final levy still was not finalised. India is racing to finalise a trade deal with the US as the 1 August deadline approaches. Officials from both countries are engaged in continuous negotiations, although major disagreements remain unresolved. Rupee traded weak, breaching the 87.40 mark as rising crude prices and a stronger dollar index weighed on sentiment, according to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities. Market participants remain cautious ahead of the US Federal Reserve's policy announcement tonight, with additional key US data lined up this week likely to keep volatility elevated, he said. "The rupee is expected to trade within a broader range of 87.00-87.70." Adding to the downward pressure are persistent foreign portfolio investor (FPI) outflows from Indian equities, with capital being redirected toward developed markets that are currently trading at record highs, analysts noted. FPIs have sold Indian equities for the seventh straight session in the secondary market, according to data from NSE. On Tuesday, FPIs offloaded stocks worth ₹4,636.60 crore. In the last seven sessions, global funds have sold stocks worth ₹24271.98 crore. The dollar index is poised for the best month this year, with the measure of the greenback against a basket of six major currencies, down 0.05 per cent at 98.83.
Economic Times
24 minutes ago
- Economic Times
European shares fall as investors digest earnings deluge; Adidas sinks
European shares fell on Wednesday, weighed down by bank stocks, as corporate earnings took centre stage ahead of a packed schedule, which includes central bank announcements, key data and the approaching August 1 tariff deadline this week. ADVERTISEMENT German sportswear brand Adidas warned that higher U.S. tariffs would add around 200 million euros ($231 million) to its costs in the second half, sending shares tumbling 7% to a near four-month low. Peer JD Sports fell 0.8%. Banks index dipped 0.9% a day after hitting its highest since September 2008. Swiss bank UBS rose 3% after reporting its second-quarter profit more than doubled from last year's, while HSBC Holdings fell 5% on posting first-half pretax profit below estimates. The pan-European STOXX 600 index dropped 0.3% by 0720 GMT. Regional bourses were mixed, with Germany's blue-chip DAX shedding 0.3%, while France's CAC 40 rising 0.1%. Miner Rio Tinto dropped 1.4% after reporting its smallest first-half underlying profit in five years on subdued iron ore prices. The outlook for European corporate health has improved, earnings forecasts showed on Tuesday, after the European Union struck a framework trade deal with the U.S. on Sunday following weeks of negotiations. (You can now subscribe to our ETMarkets WhatsApp channel)
The Hindu
an hour ago
- The Hindu
Bayern Munich signs Liverpool forward Luis Diaz on 4-year deal
Bayern Munich signed Liverpool winger Luis Díaz to a four-year contract on Wednesday (July 30, 2025) in the German champion's biggest deal of the offseason so far. The move balances out Liverpool's heavy spending with a fee reported at 75 million euros ($87 million) by German media, while Bayern dips into the millions it earned at the Club World Cup, a competition Liverpool didn't qualify for. Díaz had been with Liverpool since 2022 and scored 17 goals in 50 games across all competitions last season as the club won the Premier League title. 'From today on I'm part of this lovely family,' Diaz said in Spanish in a video message posted on Bayern's social media accounts. Díaz leaves amid Isak speculationLiverpool had dismissed talk of the 28-year-old Colombia winger leaving but its approach shifted when he was left out of the squad for a preseason friendly loss to AC Milan on Saturday. Heavy spending for Liverpool Diaz's departure comes in an offseason where Liverpool has spent heavily strengthening a team that won a record-equaling 20th English league title last term. Coach Arne Slot has focused on his attack with the signings of Florian Wirtz and Hugo Ekitike. Liverpool's total spend is around $342 million and there could be more arrivals before the transfer window shuts on Sept. 1. Isak on Liverpool's radar Bayern's offer appears to have been too good to refuse and could heighten speculation that the Premier League champion will move for Newcastle forward Alexandar Isak. Diaz joined Liverpool from Porto for an initial 45 million euros ($50 million) in 2022 — replacing Sadio Mané, who went to Bayern — and won the Premier League, FA Cup and two English League Cups in his time at Anfield. Liverpool's German connectionGermany has loomed large in Liverpool's recent transfer business as the club signed attacking midfielder Wirtz and right back Jeremie Frimpong from Bayer Leverkusen, plus striker Ekitiké from Eintracht Frankfurt. It also sold defender Jarell Quansah to Leverkusen. It's the first big transfer fee paid this offseason by Bayern, which raised money from selling striker Mathys Tel to Tottenham and cut its wage bill when forwards Thomas Müller and Leroy Sané both left the club. Bayern's signings of defender Jonathan Tah from Leverkusen and young midfielder Tom Bischof from Hoffenheim only involved small sums to make them eligible for the Club World Cup, weeks before they would have joined anyway as free agents.
