New CEO Arthur Hoeld, who assumed the role July 1, described the situation as a wake-up call. "We, as a company, need to take a hard look at ourselves," he said during a media briefing. "The results reflect a failure to meet even our own standards." Hoeld labeled 2025 a "reset year" and promised a revised strategic roadmap by October.
Second-quarter results revealed deeper trouble. Currency-adjusted sales dropped 2% year-over-year to €1.94 billion—well below analysts' estimates of €2.06 billion. North America led the slide with a 9.1% decline, while Europe and Asia-Pacific also posted losses. Adjusted operating profit came in at a €13.2 million loss, driven partly by €84.6 million in one-time restructuring costs.
Puma has been squeezed between internal struggles and external shocks. "Muted brand momentum," unfavorable retail shifts, and bloated inventory have eroded profitability. The firm rushed shipments into the U.S. ahead of tariff deadlines, inflating warehouse stock and forcing price cuts. Chief Financial Officer Markus Neubrand admitted these tactics would cut gross profit by €80 million this year.
Puma is reducing U.S. imports from China, currently at 10% of its supply base, and will introduce price hikes starting in Q4. Most of its U.S. merchandise comes from Vietnam, Cambodia, and Indonesia, nations also exposed to Washington's tariff regime.
The company's capital expenditures for 2025 have been trimmed to €250 million from €300 million. Its previously forecasted EBIT of €445–€525 million has been scrapped, with management now projecting an annual operating loss.
Puma's shares have halved year-to-date, signaling waning confidence amid a swift market competition and Nike's pending resurgence. Analysts warn that Puma risks an "existential identity crisis" unless it reignites consumer interest and stabilizes its positioning in the crowded athletic wear market.
