Puma to Reset Strategy in 2025 After Sales Slump and Tariff Impact
Puma is planning big changes after facing weak sales, especially in North America and Europe. The company’s CEO, Arthur Hoeld, said that 2025 will be a “reset” year and 2026 will be a “transition” year.
Hoeld became CEO on July 1 and was previously with Adidas. He said Puma’s retro sneakers, like the Speedcat, did not sell well. “We need to look at ourselves and find a new way forward,” he told reporters.
He promised to share a full plan by the end of October. He will focus on improving Puma’s wholesale business and updating the company’s growth strategy.
An analyst from RBC said Puma is facing a serious identity crisis. The sportswear market is highly competitive, and Nike is also planning a big return in late 2025.
Tariffs and Rising Costs
Puma is also struggling with new U.S. tariffs, which will lower its profit by about €80 million ($94 million) this year. Puma is raising prices in the U.S. to help reduce the impact.
Most of Puma’s products for the U.S. are made in Vietnam, Cambodia, and Indonesia. The company is trying to reduce how much it imports from China.
To beat tariff deadlines, Puma shipped a lot of goods early, which led to high stock levels and more discounts.
Sales Drop and Outlook
Puma now expects its yearly sales to fall by at least 10%, a big change from its earlier forecast of small growth.
In the second quarter, Puma made €1.94 billion in sales, which was lower than expected. Sales dropped 9.1% in North America and 3.9% in Europe.
Puma did not say how big the annual loss could be, but earlier expected profits between €445 million and €525 million.
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