Puma Shares Rise 6% After Narrower-Than-Expected $422 Million Loss in 2025 Earnings Report

Shares of German sportswear giant Puma rose nearly 6% on Thursday after the company released its full-year 2025 earnings, reporting a smaller-than-expected loss of $422 million (357.2 million euros). The operating loss, though significant compared to the previous year’s profit of 548.7 million euros, came in below analysts’ expectations of a 374.3 million euro loss, providing a positive boost to investor sentiment.

Puma attributed the 13.1% decline in performance to a strategic “reset” completed last year, which aimed to address excess inventory and higher marketing costs for sneakers and apparel. Sales slowed notably in the second half of the year, while profit margins fell by 260 basis points to 45%. As part of its cautious outlook, Puma announced it would cancel dividend payouts for 2025 and anticipates an operating loss between 50 million and 150 million euros for the current year.

Despite the losses, analysts at Jefferies noted that Puma’s report showed progress “slightly ahead of the journey mapped out in the closing stages of 2025” and described the results as largely in line with expectations. “The group had already outlined 2026 as a transition year, and guidance today feels consistent,” they commented, highlighting that no major surprises emerged from what was a challenging end to 2025.

European stocks were mixed on Thursday morning, as earnings reports from major firms, including Deutsche Telekom, Allianz, AXA, Munich Re, and Stellantis captured investor attention. Other corporate highlights included Britain’s Rolls-Royce, which reported a 40% profit jump in 2025 and expects over £4 billion ($5.42 billion) in profits this year, and the London Stock Exchange Group, which announced a £3 billion share buyback amid a 56% rise in pre-tax profits.

The positive reaction to Puma’s earnings came amid broader relief in European markets after a 10% U.S. tariff took effect instead of a higher 15% rate, stabilizing trade concerns. With global investor focus shifting toward earnings, Puma’s narrower-than-expected loss offers a glimmer of optimism in an otherwise challenging retail environment, while analysts anticipate that the company’s ongoing strategy reset will support a gradual recovery in 2026.

source: cnbc