PUMA (PUM) Q2 2025 TU earnings summary

Executive summary

• Q2 2025 sales declined 2% in constant currency to €1.94bn, with H1 sales down 1% to €4.02bn, missing expectations.

• Weakness in North America, Europe, and Greater China, especially in wholesale and brick-and-mortar, drove the decline.

• Direct-to-consumer (DTC) business grew 9.2% in constant currency, led by e-commerce (+19.4%), raising DTC share to 31%.

• Adjusted EBIT fell to €-13.2m, with net loss reaching €-247m, impacted by one-time costs and lower gross margin.

• Leadership transition underway, with new CEO Arthur Hoeld appointed July 1, 2025, emphasizing a reset year.

Financial highlights

• Gross profit margin decreased by 70 basis points to 46.1% in Q2 2025 due to promotions and currency headwinds.

• Q2 2025 adjusted EBIT: €-13.2m; net loss: €-97.8m to €-247m, mainly due to lower gross margin and one-time costs.

• Inventory increased 10% in euro and 18% in constant currency to €2.15bn, representing 23.6–25% of last twelve months' sales.

• One-time costs in Q2 totaled €84.6–85m, including cost efficiency program, goodwill impairment, and deferred tax asset write-off.

• Net debt increased slightly at end of Q2, mainly due to seasonal inventory build and new €210m Schuldschein.

Outlook and guidance

• Full-year 2025 guidance revised: currency-adjusted sales expected to decline low double digits, with a negative 5pp currency impact.

• EBIT expected to be negative for 2025, reflecting softer sales, currency headwinds, U.S. tariffs, and one-off charges.

• Capital expenditure for 2025 revised to €250m from €300m.

• U.S. tariffs expected to reduce gross profit by €80m in 2025; mitigation efforts underway.

• Further details on strategy and roadmap to be communicated in October after CEO's initial review.