Following A Second-Quarter Operating Loss, Puma’s Shares Decline Due To No Guidance Upgrade

Sportswear manufacturer Puma (PUMG.DE) opened a new tab on Friday, reporting a second-quarter operating loss that was less than anticipated thanks to cost reductions, even if sales continued to decline due to poor demand.

In early trading, Puma’s shares dropped more than 6% as investors expressed disappointment with the company’s failure to improve its guidance.

In an effort to simplify its operations in the face of low demand for its athletic wear and footwear as well as an industry-wide impact from U.S. import tariffs, the German company has eliminated employment and reorganized administrative positions.

After reducing costs associated with its cost-efficiency program and as a result of U.S. tariff refunds, it reported an operating loss (EBIT) of €53.1 million in the second quarter, less than analysts’ projection of a €68.7 million loss in a poll provided by the firm.

However, due to a decline in consumer demand and the impact of the Middle East conflict, sales dropped 9.4% in currency-adjusted terms to €1.69 billion ($1.94 billion).

We anticipate a sequential improvement in revenues in the second half of 2026 following a strong first quarter and a lower second quarter that met expectations,” CEO Arthur Hoeld said in a statement.

The company reaffirmed its annual projection, but added that the perspective now included a probable impact from the turmoil in the Middle East as well as potential benefits from lower tariff rates and tariff refunds.

Nevertheless, investors’ disappointment with the results release caused its shares to decline.

In a note to clients, JP Morgan analysts said, “The lack of a guidance upgrade at this stage … may be slightly disappointing, even though the results are generally in line and suggest the company is on the right track in a year of transition.”

Tariff refunds contributed €11.5 million to the second-quarter profit, according to a statement from the company.