Puma inventory headache highlights tariff dilemma for retailers

LONDON, July 25 — Puma faces a dilemma in the United States: after rushing shipments from Asia to beat incoming tariffs, the German sportswear brand is now discounting to clear stock, while planning to raise prices this year to offset rising costs. These conflicting pressures reflect a broader challenge for retailers trying to make sure U.S. shelves are stocked for the crucial back-to-school and holiday seasons, while looking to pass on higher costs through price increases at a time when demand is softening. Puma, which warned on Thursday that it expects an annual loss, said it was cutting orders and plans to raise prices in the fourth quarter to soften the impact of tariffs, which it estimates will take 80 million euros ($93.78 million) off its annual gross profit. "Elevated inventory levels on our balance sheet are leading to lower full price realisation," Chief Financial Officer Markus Neubrand told journalists on Friday. "In response, we've adjusted our future orders to better match expected demand." At the end of the second quarter, Puma's inventories were up 18.3% in currency-adjWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times