Competitor Struggles on Field Yet Manages to Secure Victory
Puma Faces Challenging Year Ahead as New CEO Takes the Reins
Puma, the renowned sports apparel manufacturer, is facing a tough year ahead, according to its new CEO, Arthur Hoeld. The company recently issued a significant profit warning for 2025, citing muted brand momentum, elevated inventories, weaker global sales, and the impact of new U.S. tariffs as key factors.
In the second quarter of 2025, Puma reported a loss of EUR 247 million on an 8% sales decline and a 10% jump in inventories to EUR 2.15 billion. Tariffs alone are expected to reduce gross profits by EUR 80 million, despite mitigation efforts like supply chain optimizations and planned U.S. price hikes. As a result, Puma now forecasts a low double-digit percentage decline in full-year sales, a sharp contrast to previous expectations of a low-to-mid single-digit decline or growth.
The U.S. tariffs have made Puma's products more expensive, affecting competitiveness and forcing discounting to clear excess stock, further straining margins. Puma's intent to actively reduce inventories and raise U.S. prices to counter tariff costs signals efforts to stabilize finances. However, the company faces an "existential identity crisis" amid a highly competitive sporting goods market, especially with Nike's resurgence from Autumn/Winter 2025, indicating substantial challenges ahead for Hoeld's leadership to regain brand momentum and profitability.
For those interested in delving deeper into Puma's financial situation, DER AKTIONÄR offers a subscription service for €9.95 per month. Subscribing grants access to their analysis of Puma's financial data. Existing subscribers can log in immediately, while new subscribers can secure access now. The service is available for online access, and instant purchase options are provided.
In summary, Puma's 2025 financial difficulties reflect both external pressures (U.S. tariffs, competitive market) and internal issues (brand relevance, inventory management). The company's strategic response under Arthur Hoeld remains to be fully seen but will likely focus on inventory reduction and pricing adjustments. As Puma navigates these challenges, DER AKTIONÄR's analysis provides valuable insights for investors and enthusiasts alike.
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The finance concerns at Puma, a prominent sports apparel manufacturer, are exacerbated by the impact of U.S. tariffs, which are anticipated to reduce gross profits by €80 million. To counteract these costs, Puma intends to optimize its supply chain, increase U.S. prices, and actively reduce inventories, which are key elements of its business strategy.
