PUMA has announced sweeping changes as the company increasingly fears U.S. trade policies will add further pressure to its sales performance.
The German sportswear brand plans to cut 500 jobs as part of a cost-efficiency program, the company confirmed to Newsweek. This announcement had previously been made by Chief Financial Officer Markus Neubrand at a Wednesday conference.
The news comes on the back of a gloomy forecast for the 2025 financial year, in which the company said that “trade disputes” and “geopolitical tensions” could take a toll on its sales growth.
Why It Matters
President Trump’s tariff policies and proposals have resulted in retaliatory actions from America’s trading partners, while raising broader concerns that such global trade conflicts could negatively impact the American economy. Businesses are already expressing significant apprehension, with certain executives cautioning that the tariffs could lead to higher operational costs and result in price hikes for consumers.
What To Know
Shares in PUMA fell nearly 23 percent on Wednesday, after the company issued its forecast for the 2025 fiscal year. This marks the second major decline for the stock this year—down nearly 50 percent since end of 2024—the first coming after the release of PUMA’s preliminary results in January, which showed a flat operating result and a slight dip in net income.
“PUMA anticipates ongoing geopolitical tensions and economic challenges in 2025, especially trade disputes and currency volatility,” Tuesday’s release read. “Against this backdrop, PUMA expects currency adjusted sales to grow in the low- to mid-single-digit percentage range.”
The company added that it anticipates weak sales growth “primarily due to a soft performance in the U.S. and China,” and forecast earnings before interest and taxes of between €445 million and €525 million for the full year. This compares to the €622 million operating result it achieved last year, and the €690 million penciled in by analysts for this year.
Despite the cautious outlook, the brand reported 4.4 percent currency-adjusted sales growth for the 2024 financial year for a total of $9.56 billion (€8.82 billion). This growth was attributed to strong performance “across all regions, product divisions and distribution channels.”
Tobias Schwarz/AFP via Getty Images
However, the company told Newsweek that the recently announced layoffs were necessary to ensure continued profitability and that “costs do not rise faster” than sales. PUMA did not specify which regions would be impacted by the layoffs, beyond confirming that these would affect “up to 150 positions” at its headquarters in Herzogenaurach, Germany.
What People Are Saying
PUMA told Newsweek: “We have grown strongly in recent years and in 2024 we achieved the highest sales in the company’s history. However, we cannot be satisfied with our profitability and in the future, we must ensure that our costs do not rise faster than our sales. Unfortunately, we therefore had to make the decision to cut 500 positions worldwide, which is around 5%.
“At our HQ in Herzogenaurach, this affects up to 150 positions. We will make the adjustment in a socially responsible manner. We do not anticipate any dismissals initiated by PUMA. Instead, we will not refill some vacancies, take advantage of natural fluctuation and offer a voluntary programme in the coming weeks.”
Bloomberg Intelligence analysts Poonam Goyal and Sydney Goodman said in a note, cited by Business of Fashion: “Puma’s weak 1Q and 2025 trails consensus and suggests spending and cost uncertainty due to economic and trade tensions in the US and China.”
What Happens Next?
PUMA is scheduled to release its results for the first quarter of the 2025 financial year on May 8.
