Puma Stock: Profit Warning Triggers Double-Digit Plunge

The Herzogenaurach-based sportswear manufacturer has stunned markets with a dramatic profit warning following disappointing second-quarter results. Puma reported a currency-adjusted sales decline of 2% to €1.942 billion, while the Euro-calculated decrease reached a concerning 8.3%. The company's adjusted EBIT plummeted to negative €13.2 million, with particularly weak performance across key markets. North America fell by over 9%, while both Europe and China declined by approximately 4%. Only Latin America showed positive momentum with 16.1% growth. The stock price dropped more than 11% in after-hours trading as investors reacted to the news.

Complete Reversal in Annual Forecast

What was originally planned as a growth year has transformed into a nightmare for Puma. Management has abandoned all hope for 2025 growth, now predicting a low double-digit percentage decline instead of the previously targeted low to mid-single-digit increase. The profit outlook has deteriorated even more dramatically – the company now expects a full-year loss rather than the planned EBIT of €445-525 million. Puma cites weakening sales momentum, substantial currency pressures, and US tariffs (impacting earnings by approximately €80 million) as primary factors. In response, the company has cut its investment plans from €300 million to just €250 million, while also facing inventory challenges that increased 18.3% to €2.15 billion.

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Source StockWorld