Puma Shares Fall Sharply on Revenue Decline and Confirmed Loss Outlook

Shares of Puma SE (PUMG) fell as much as 6.6% on Wednesday after the German sportswear giant reported a significant revenue contraction for the second quarter and confirmed its downbeat outlook for the full year, signaling that its strategic turnaround remains a work in progress.

Q2 Results Weighed by Restructuring

Puma announced that its second-quarter revenue declined by nearly 10% year-over-year to approximately €1.69 billion. The company also posted a continued earnings before interest and taxes (EBIT) loss of roughly €41.9 million for the period.

While these figures were modestly better than consensus analyst forecasts, they highlighted ongoing business challenges. The company attributed the weak performance to its deliberate strategy of reducing its presence in lower-quality wholesale channels in North America and Europe, as well as softer consumer demand linked to the conflict in the Middle East.

Weak Outlook Disappoints Investors

The primary driver for the negative market reaction was management's confirmation of its full-year 2026 guidance. Puma continues to expect an operating loss in the range of €-50 million to €-150 million. The absence of an upward revision left investors with little confidence in a near-term operational recovery.

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This sentiment was echoed by a recent analyst note from JPMorgan, which had moved to a Neutral rating on the stock in mid-July. The bank cited the market's need for tangible evidence of a turnaround, which Wednesday's results failed to deliver. The stock hit a session low of €26.25, sliding from its opening price of €27.28.

Broader Sector Headwinds

The results come amid a challenging environment for the European sportswear sector, with peer Adidas also facing pressure ahead of its own earnings report. The broader consumer discretionary space remains sensitive to any signs of weakening demand, and Puma's report underscores the difficulties facing apparel and footwear brands.

Taken together, the combination of declining sales, a confirmed loss-making outlook for the year, and pre-existing cautious sentiment from analysts created significant selling pressure on the stock.