PUMA’S shares slumped 13.4% in early Frankfurt trade on Wednesday, after the German sportswear group a night before gave disappointing forecasts for 2025 and the first quarter due to a weak performance in the U.S. and China.

“Our outlook for 2025 is below the expectations we set a year ago, both in terms of top and bottom lines,“ CEO Arne Freundt said in a statement on Wednesday.

Puma said on Tuesday that its annual currency-adjusted sales would grow in a low- to mid-single-digit percentage rate, compared with 4.4% growth to 8.82 million euros ($9.61 million) in 2024.

It had previously expected 2025 growth to be stronger than in 2024.

The group forecast adjusted earnings before interest and taxes (EBIT) of 520 million to 600 million euros for 2025, before a one-time cost of up to 75 million related to its cost-cutting programme.

The underlying EBIT guidance at its midpoint of 560 million euros “looks well short of (likely stale) sell-side expectations of 693 million euros”, analysts at Jefferies said in a note to investors.

Puma also flagged ongoing geopolitical tensions and economic challenges in 2025, highlighting trade disputes and currency volatility.

It forecast quarterly currency-adjusted sales growth in a low single-digit percentage, below last year’s level, with “significantly” lower operating earnings for the same period.

The German sportswear brand had reported lower than expected fourth-quarter sales and a drop in annual profit at the end of January, causing its shares to lose more than a fifth of their market value in a single day.