Latest news with #Speedcat
New York Post
5 days ago
- Business
- New York Post
Puma facing an 'existential identity crisis' as shares tumble on profit warning
Puma shares dropped 16% on Friday after the German sportswear brand said it now expects an annual loss as sales decline and US tariffs dent profit. Puma has been struggling to attract shoppers as re-released retro sneakers, such as the Speedcat, have not sold as well as hoped, and CEO Arthur Hoeld, in the role since July 1, said the company needs to 'course-correct.' 'This year, 2025, will be a reset for Puma and 2026 will be a transition year for us,' said Hoeld, formerly sales chief at Adidas, who was appointed by Puma's board in April to turn performance around. 3 Puma has been struggling to attract shoppers as re-released retro sneakers, such as the Speedcat (above), have not sold as well as hoped. REUTERS 'We as a company need to take a hard look at ourselves,' he said on a conference call with journalists. 'We do have tremendous potential with a brand that hasn't been unlocked yet, but a brand that also requires a reset and a new way forward.' Hoeld said he planned to review Puma's growth plan and strengthen the quality of wholesale distribution, and that he would give a broader roadmap on his strategy for Puma by the end of October. 'Puma is facing an existential identity crisis in terms of relevance in a sporting goods industry that is more competitive, and at a time when the largest player Nike is staging its comeback from Autumn/Winter '25,' said RBC analyst Piral Dadhania. Tariff hit US tariffs will reduce Puma's gross profit this year by about 80 million euros ($94 million) despite efforts to offset the pain, including US price hikes in the fourth quarter, Chief Financial Officer Markus Neubrand said. He declined to say how much prices would go up. 3 Puma said US tariffs will reduce gross profit this year by about 80 million euros ($94 million) despite efforts to offset the pain. REUTERS Sportswear retailers like Nike, Adidas and Puma rely on Southeast Asian countries like Vietnam for the sneakers and clothes they import into the United States, making them especially exposed to tariffs. Puma frontloaded shipments of goods from Asia ahead of successive US tariff deadlines, Neubrand said, driving inventory levels up and contributing to more discounting. Most Puma products sold in the United States are made in Vietnam, Cambodia, and Indonesia, Neubrand said, and the company aims to cut its sourcing from China to the US further from 10% currently. In preliminary earnings released late on Thursday, Puma said annual sales would decline by at least 10%, having previously forecast low to mid-single-digit growth. 3 Nike, Adidas and Puma rely on Southeast Asian countries like Vietnam for the sneakers and clothes they import into the US. REUTERS Puma's second-quarter currency-adjusted sales of 1.94 billion euros were weaker than analysts expected, with North America sales dropping 9.1% and Europe down 3.9%. The company did not say how big the annual loss was likely to be. It previously forecast earnings before interest and tax of between 445 million euros and 525 million euros for the year. Puma also cut its capital expenditure plans for the year to 250 million euros from 300 million euros previously.
Time of India
5 days ago
- Business
- Time of India
Puma shares dive after warning of full-year loss, US tariff impact
Puma shares opened down 18% on Friday after the German sportswear brand said it now expects annual sales will decline and it will make a loss for 2025, as well as reporting weaker-than-expected quarterly sales. Puma has been struggling to attract shoppers as re-released retro sneakers, such as the Speedcat, have not sold as well as hoped, and the company said "muted brand momentum" would continue, with U.S. tariffs another factor hurting its performance. Puma said in its earnings report late on Thursday that annual sales would decline by at least 10%, a "low double-digit percentage", rather than grow by low to single digits as earlier forecast. In an attempt to turn performance around, Puma's board in April named a new chief executive, former Adidas sales chief Arthur Hoeld, who officially started in the role on July 1. Despite such mitigation efforts as supply chain optimization and pricing adjustments, Puma said U.S. tariffs on imports would likely reduce its 2025 gross profit by about 80 million euros, Puma said. Like bigger sportswear retailers Nike and Adidas, Puma ships sneakers, running shoes, and clothing into the U.S. from China, Vietnam, Cambodia, and Bangladesh, exposing it to tariffs on those countries. Analysts at J.P. Morgan said Puma's quarterly results and revised outlook came in significantly lower than expectations. "We expect consensus earnings per share (EPS) to come down accordingly following the revised guidance and expect a negative share reaction as the market opens," they added. Puma will hold a press conference at 9:30 a.m. (0730 GMT) and an analyst call at 3 p.m.
Reuters
5 days ago
- Business
- Reuters
Puma shares dive after warning of full-year loss, US tariff impact
July 25 (Reuters) - Puma ( opens new tab shares dropped 16% on Friday after the German sportswear brand said it now expects an annual loss as sales decline and U.S. tariffs dent profit. Puma has been struggling to attract shoppers as re-released retro sneakers, such as the Speedcat, have not sold as well as hoped, and CEO Arthur Hoeld, in the role since July 1, said the company needs to "course-correct". "This year, 2025, will be a reset for Puma and 2026 will be a transition year for us," said Hoeld, formerly sales chief at Adidas, who was appointed by Puma's board in April to turn performance around. "We as a company need to take a hard look at ourselves," he said on a conference call with journalists. "We do have tremendous potential with a brand that hasn't been unlocked yet, but a brand that also requires a reset and a new way forward." Hoeld said he planned to review Puma's growth plan and strengthen the quality of wholesale distribution, and that he would give a broader roadmap on his strategy for Puma by the end of October. "Puma is facing an existential identity crisis in terms of relevance in a sporting goods industry that is more competitive, and at a time when the largest player Nike is staging its comeback from Autumn/Winter '25," said RBC analyst Piral Dadhania. U.S. tariffs will reduce Puma's gross profit this year by about 80 million euros ($94 million) despite efforts to offset the pain, including U.S. price hikes in the fourth quarter, Chief Financial Officer Markus Neubrand said. He declined to say how much prices would go up. Sportswear retailers like Nike (NKE.N), opens new tab, Adidas ( opens new tab and Puma rely on Southeast Asian countries like Vietnam for the sneakers and clothes they import into the United States, making them especially exposed to tariffs. Puma frontloaded shipments of goods from Asia ahead of successive U.S. tariff deadlines, Neubrand said, driving inventory levels up and contributing to more discounting. Most Puma products sold in the United States are made in Vietnam, Cambodia, and Indonesia, Neubrand said, and the company aims to cut its sourcing from China to the U.S. further from 10% currently. In preliminary earnings released late on Thursday, Puma said annual sales would decline by at least 10%, having previously forecast low to mid-single-digit growth. Puma's second-quarter currency-adjusted sales of 1.94 billion euros were weaker than analysts expected, with North America sales dropping 9.1% and Europe down 3.9%. The company did not say how big the annual loss was likely to be. It previously forecast earnings before interest and tax of between 445 million euros and 525 million euros for the year. Puma also cut its capital expenditure plans for the year to 250 million euros from 300 million euros previously. ($1 = 0.8520 euros)
Mint
6 days ago
- Business
- Mint
Puma Slashes Outlook as New CEO Confronts Weak Demand, Tariffs
(Bloomberg) -- Puma SE slashed its earnings forecast for the year amid strikingly weak demand for its sports and athleisure products and growing concerns about the potential impacts of US tariffs. The German company now expects to report a loss in adjusted earnings before interest and taxes this year, according to a statement late Thursday that showed disappointing preliminary second-quarter results. That's a marked downgrade from Puma's previous target, which called for profits by that metric to reach a range of €520 million ($611 million) and €600 million. It's also far below the average analyst estimate, which foresaw a €489 million gain for the year. Puma cited weaker sales in North America, Europe and Greater China during the second quarter and said that trajectory will probably continue through the rest of year, causing high inventory levels. The company missed estimates on both sales and profit in the second quarter. It now expects currency-adjusted sales to decline by a low double-digit percentage this year. The previous forecast called for growth in the low- to mid-single-digit percentage range. The company anticipates US tariffs to hurt gross profits this year by about €80 million. Since arriving at Puma on July 1, Chief Executive Officer Arthur Hoeld is looking to reset a brand that's struggled in recent years to connect with consumers. The Adidas veteran took over after Puma's former CEO Arne Freundt left following a string of profit warnings and a disagreement with the supervisory board over the company's strategy. Puma was banking much of its performance this year on being able to sell between four and six million pairs of the thin-soled Speedcat sneaker and related models like the Ballet shoes. That push was part of Freundt's broader effort to deepen Puma's profile on higher-end sneakers and sports gear. Puma has struggled in recent years to roll out a product that's capturing the zeitgeist. Meanwhile, cross-town rival Adidas has excelled at that, especially with its retro Samba and Gazelle sneakers. Hoeld helped oversee the rollout of those shoes while at Adidas earlier this decade. More stories like this are available on
Hype Malaysia
6 days ago
- Automotive
- Hype Malaysia
PUMA & Rosé Unveil New Speedcat Colourway & We're Here For It!
PUMA's sleek yet fiery Speedcat continues its run of form, returning in a new colourway alongside K-pop sensation Rosé. In her latest visuals with PUMA, Rosé and the Speedcat sit in stillness, harnessing idle speed and ready to ignite. With each frame, tension builds as the Speedcat, ready to accelerate, is backdropped by the untamed power of a rumbling engine and blazing-red muscle on four wheels. Once again, Rosé emits effortless elegance while highlighting the Speedcat as a bold emblem of individuality, bridging its unique past into the present. For this latest drop, the iconic motorsport-inspired silhouette takes on a pale blue colourway with a flash of bold orange on the Formstrip, subtly evoking the low-profile silhouette's racing heritage. The new PUMA Speedcat is available now at PUMA stores, JD Sports, and Foot Locker at a retail price of RM549.
