Puma Slashes Outlook as New CEO Confronts Weak Demand, Tariffs

(Bloomberg) – Puma SE has reduced earnings estimation for the year due to increasing worries about the weak demand for sports and athletic products and the potential effects of US tariffs.

According to a late statement on Thursday, the German company expects a loss in corrected earnings before interest and taxes this year.

This is a significant decrease in Puma’s previous target, which called for the profit of this metropolitan to reach € 520 million ($ 611 million) and € 600 million. It is also far below the an estimation of an average analyst that foresees € 489 million for the year.

In the second quarter, Puma talked about weaker sales in North America, Europe and Great China, and orbit will probably continue for the rest of the year and cause high inventory levels. In the second quarter, the company missed forecasts for both sales and profit.

It is now waiting for foreign exchange -set sales to fall on a low -double -digit percentage this year. The previous estimate called for growth in the percentage range of low to medium single.

The company expects US tariffs to harm gross profits this year.

Since he came to Puma on July 1, the Executive Officer Arthur Hoeld wants to reset a brand that has been fighting to connect with consumers in recent years. Adidas veteran took over after leaving after his disagreements on the strategy of the company’s strategy with a series of profit warnings and audit committees of Arne Freundt, former CEO of Puma.

Puma made most of this year’s performance banking to sell relevant models such as Speedcat sneakers and ballet shoes with four to six million pairs. This push was part of Freundt’s effort to deepen Puma’s profile in senior sneakers.

In recent years, Puma has fought to present a product that captured Zeitgeist. In the meantime, intercity rival Adidas, especially Retro Samba and Ceylan sneakers were successful. Hoeld helped to control the launch of these shoes in Adidas at the beginning of these decades.

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