Struggling Puma Reports Q2 Net Loss with Diving Sales Amidst Unpredictable Market Conditions; Adjusts Yearly Projections Downward
Puma Reports Q2 Net Loss, Lowers Full-Year Outlook
Puma AG, the German footwear and sports apparel company, has announced a net loss of €247 million for the second quarter of 2025. This marks a significant decline compared to the profit of €41.9 million in the same period last year.
The net loss was primarily due to higher net interest expenses, a goodwill impairment of €84.6 million, one-time costs related to a cost-efficiency program, and weakened sales across key markets.
Puma recorded sales of €1.942 billion, a decrease from €2.117 billion in the previous year. The decrease is attributed to currency headwinds, which negatively impacted sales in euro terms by around €135 million in the second quarter. Notably, there were notable softness in wholesale sales, especially in the US, China, and Europe.
Despite growth in direct-to-consumer (DTC) channels and e-commerce, the overall financial performance was negatively impacted by adverse geopolitical and macroeconomic factors, shifts in channel mix, elevated inventory levels, and U.S. tariffs. These challenges led Puma to lower its full-year outlook, now expecting a low double-digit percentage decline in currency-adjusted sales and an EBIT loss for 2025.
Key contributing factors to Puma's financial challenges in Q2 2025 include higher net interest expenses, one-time costs related to a cost-efficiency program and a goodwill impairment, a 6.3% decline in wholesale sales, macro and geopolitical headwinds, and currency headwinds. Operating expenses increased 4% to €915 million, putting further pressure on profitability.
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The company has not mentioned any changes in its recorded sales for the second quarter of 2025, nor has it provided an update on its operating loss or other operating income and expenses. The revised guidance does not mention specific earnings per share or loss before taxes.
Puma AG anticipates that both sector-wide and company-specific challenges will continue to significantly impact performance in 2025. The company has not mentioned any changes in the anticipated sector-wide or company-specific challenges.
Readers are advised to stay tuned for further updates from Puma AG.
- Puma's Q2 financial report reveals a net loss, signifying a shift from profit, which can impact its overall business performance.
- The decline in Puma's Q2 sales and the lowering of its full-year outlook suggests potential financial difficulties that could affect the entire sports apparel and footwear business sector.
