PUMA (PUM) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were EUR 2,076 million, flat year-over-year in constant currencies, with D2C up 12% (e-commerce +17.3%) and wholesale down 4% due to U.S. and China softness.

• Adjusted EBIT fell 52.4% to EUR 76 million, impacted by lower gross margin and higher OPEX; net income dropped to EUR 0.5 million.

• Leadership transition underway: Arthur Hoeld appointed CEO effective July 2025, with interim management by Maria, Matthias, and Markus.

• Major brand campaign 'Go Wild' launched, driving global visibility and product innovation; new product lines and partnerships introduced.

• Nextlevel cost efficiency program underway, targeting 500 staff reductions and closure of unprofitable stores.

Financial highlights

• Q1 2025 sales were EUR 2,076 million, up 0.1% year-over-year currency adjusted; reported sales down 1.3% due to currency headwinds.

• Gross profit margin decreased by 60 bps to 47.0%, mainly due to absence of prior year inventory valuation benefits and currency headwinds.

• Adjusted EBIT dropped 52.4% to EUR 76 million; EBIT margin declined to 2.8% from 7.6% year-over-year.

• Operating expenses rose 7.1% to EUR 905 million, mainly from D2C growth, higher depreciation, and marketing spend.

• Inventories up 16.3% to EUR 2,076 million; working capital increased 12.8% to EUR 2,082 million.

Outlook and guidance

• 2025 outlook maintained: currency-adjusted sales growth of low to mid-single digit, adjusted EBIT before one-time costs between EUR 520–600 million, and up to EUR 75 million in one-time costs for the cost efficiency program.

• Q2 2025 expected to see low single-digit constant currency sales growth and adjusted EBIT above Q1 but below prior year.

• Outlook excludes potential impact from new U.S. tariffs announced after March 2025; U.S. tariff impact remains under review.

• FX headwinds expected to increase to 3 percentage points on top line.