(Reuters) -German sportswear Puma said on Tuesday it expects quarterly currency-adjusted sales growth to be in a low single-digit percentage, below the previous year’s level, due to a soft performance in the U.S. and China.
The company expects to incur one-time costs of up to 75 million euros ($81.96 million) in 2025 as part of its cost efficiency programme.
Uncertainty over whether consumer demand in China will recover has driven many brands, including in the luxury sector, to focus more on U.S. shoppers as a growth driver for 2025.
Puma flagged ongoing geopolitical tensions and economic challenges in 2025, highlighting trade disputes and currency volatility.
U.S. President Donald Trump’s back-and-forth tariff moves against major trading partners have kept businesses, consumers and companies on edge, prompting companies to warn about possible price increases, which could boost inflation and dent economic growth.
Puma expects adjusted earnings before interest and taxes (EBIT) for the year to be in the range of 520 million euros to 600 million euros, while it sees EBIT growth to range between 445 million euros and 525 million euros including the one-time cost of its efficiency initiative.
The sportswear brand said EBIT for the first quarter will be “significantly” lower than the previous year’s level of 159 million euros.
Puma launched a cost-cutting programme in January after its annual net profit fell below the prior year’s level, which led to a loss of over a fifth of its market value in a single day.
The company’s weak quarterly sales and annual profit have fed into concerns about its ability to compete with bigger rivals Adidas and Nike and fend off newer, fast-growing brands such as On Running and Hoka.
Puma will release its full fourth-quarter and annual sales results on March 12.
($1 = 0.9138 euros)
(Reporting by Gursimran Kaur in Bengaluru and Alexander Huebner; Editing by Alan Barona)
