Puma Plunges 18% After Slashing 2025 Sales Forecast by Over 10% Amid Tariff Headwinds

Puma's (OTC: PMMAF) shares took a nosedive on Friday, plunging over 18% after the German sportswear company flagged a full-year loss for 2025 and swung its sales outlook into the red.

The shocker came after the company reported quarterly sales that fell short of expectations, a sign that the retro sneaker craze-the kind that so many brands tried to ride-isn't quite hitting the mark for Puma. Their Speedcat re-release, among others, failed to catch the consumer wave, and the firm's own words point to "muted brand momentum." Adding salt to the wound, ongoing U.S. tariffs on imports have hurt margins more than anticipated.

Originally, Puma had forecasted a slight rise in sales for the year-something in the low single digits-but now it's bracing for a decline north of 10%. That's a pretty sharp turn from bullish to cautious in just a few months.

The tariff story isn't new, but for Puma it has become a significant drag. The extra duties on gear shipped from countries like China, Vietnam, and Bangladesh are forecast to slash about €80 million from gross profits in 2025. The company's strategy to fight back-optimizing the supply chain and tweaking prices-hasn't offset the hit.

One silver lining for the company might be the leadership shakeup earlier this year. Arthur Hoeld, who previously led Adidas' (OTC: ADDYY) sales operations, took the reins at Puma starting July 1. He faces a steep climb to revitalize the brand and stabilize finances.

Wall Street's reaction was swift and unforgiving. Analysts, including those at J.P. Morgan, pointed to the downgraded guidance as a clear reason for cutting earnings estimates, expecting downward pressure on Puma's stock once markets reopened.

Given this hit, Puma's next moves will be under the microscope, especially with a conference call scheduled for later today. For now, the question hanging over Puma is whether the brand can turn its fortunes around in a market that's both competitive and fraught with tariff challenges.