Puma Shares Plummet After Dismal Forecast
Puma's shares fell by 20% on Friday after the company cut its full-year predictions, reporting weaker-than-expected quarterly results due to currency challenges and U.S. tariffs. Forecasts now indicate an EBIT loss for 2025 and a decline in sales, prompting investor concern.
Puma's share value plunged by 20% in early Friday trading as the German sportswear giant slashed its full-year outlook. The disappointing quarterly results, revealed Thursday, pointed to increased currency challenges and impacts from U.S. tariffs.
The company now anticipates an earnings before interest and taxes (EBIT) loss for 2025, coupled with an annual sales decline projected to be in the low double digits, a sharp departure from its earlier forecast of low-to-mid-single digit growth.
The repercussions of U.S. President Donald Trump's tariff policies continue to unsettle global markets, eroding investor confidence. Analysts at J.P. Morgan noted Puma's outlook missed their forecasts, expecting further negative market reactions. The firm will address these issues in a press and analyst call on Friday.
(With inputs from agencies.)
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