Puma significantly lowers annual targets

Sportswear manufacturer Puma has significantly lowered its sales and earnings forecast for this year after a disappointing quarter.

Puma now expects a loss in earnings before interest and taxes (EBIT), instead of the previously forecast profit of 445 million to 525 million euros, the company announced.

The reasons cited were weaker sales development, greater currency burdens, the impact of US tariffs and costs for savings measures. Sales are now expected to decline in the low double-digit percentage range. Puma had previously targeted growth in the low to mid-single-digit percentage range.

Against the backdrop of the subdued outlook, the company is scaling back its investment plans. At 250 million euros, this is now 50 million euros less than originally planned.

In the second quarter, business development in the key markets of North America, Europe and Greater China was weaker than Puma had expected. Sales fell by 2 percent in currency-adjusted terms to a good 1.9 billion euros. Excluding currency effects, the decline was 8.3 percent.

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