Puma's Financial Struggle: A Setback in the Sportswear Arena
Puma's shares plummeted by 20% after the company reported lower-than-expected results, attributing its struggles to currency headwinds and U.S. tariffs. The brand revised its outlook, foreseeing an EBIT loss by 2025 and predicting a low double-digit percentage decline in annual sales.
Puma's shares dropped dramatically by about 20% in early Friday trading. This decline followed the German sportswear company's announcement of a reduced full-year forecast, coupled with disappointing quarterly results shared on Thursday.
The company pointed to adverse impacts from currency challenges and U.S. tariffs as significant factors behind the financial downturn. Puma has now adjusted its projections, anticipating an earnings before interest and taxes (EBIT) loss by the year 2025.
The outlook for annual sales has also been revised downward, with expectations of a low double-digit percentage decrease, reversing previous predictions of low to mid-single-digit growth.
(With inputs from agencies.)
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