Puma shares lost nearly a fifth of their value as the German apparel maker cited “muted brand momentum,” U.S. tariffs and elevated inventories as reasons why it’s now forecasting a loss on the year.

Puma shares dropped 16% on Friday after the German sportswear brand said it now expects an annual loss as sales decline and U.S. tariffs dent profit.

Puma cut its 2025 outlook citing sector-wide and company-specific challenges, including tariffs. The sportswear brand said it expects full-year sales to decline by a low-double digit percentage this year.