Puma shares plunge 18% after full-year sales, profit outlook cut on U.S. tariffs

Puma shares plummeted 18% Friday aft the German sportwear marque posted worse-than-expected second-quarter income and chopped its full-year guidance, flagging the interaction of U.S. commercialized tariffs.

In a preliminary updated aft markets closed connected Thursday, the retailer said it expects full-year income to diminution by a low-double digit percent this year, compared with its anterior forecast of income maturation successful the low- to mid-single digit range.

Puma besides said it expects to station an operating nett nonaccomplishment successful 2025 — a immense plaything from the 445 cardinal euro ($523 million) to 525 cardinal euro nett it forecast anterior to assessing the interaction of tariffs.

The company's shares were down 18.4% by 8:23 a.m. London clip (3:23 a.m. ET).

"Amid ongoing volatile geopolitical and macroeconomic volatility, Puma anticipates that some sector-wide and company-specific challenges volition proceed to importantly interaction show successful 2025," the institution said successful a statement.

"Key factors see muted marque momentum, shifts successful transmission premix and quality, the interaction of U.S. Tariffs, and elevated inventory levels," it added.

The institution said U.S. tariffs were expected to person a mitigated antagonistic interaction connected 2025 gross nett of astir 80 cardinal euros.

Preliminary income meantime fell 2% year-on-year connected a currency adjusted ground successful the 2nd 4th to 1.94 cardinal euros ($2.27 billion), beneath the 2.06 cardinal estimated by analysts successful an LSEG poll.

Quarterly adjusted operating profit, excluding one-time costs, logged a nonaccomplishment of 13.2 cardinal euros. Puma incurred one-time costs, including related to its outgo ratio program, of 84.6 cardinal euro successful the 2nd quarter.

This processing communicative is being updated.