Background on Puma and its Relevance
Puma, a German sports apparel and footwear manufacturer, has recently released its financial results for the first quarter of 2025. The company’s performance and strategic decisions have significant implications for the global sportswear industry, as well as its stakeholders and competitors.
Q1 2025 Financial Performance
Net Income: Puma reported a net income of $0.561 million, marking a 99.5% decrease compared to the same period in 2024.
EBIT: The adjusted EBIT stood at $84.7 million, a 52.4% decline from the previous year.
Sales: Total sales amounted to $2.329 billion, a 1.3% decrease from the previous year. This included a 4.2% increase in Europe, Middle East, and Africa (EMEA) sales to $891.7 million, while North American sales dropped by 4.6% to $845 million. Sales in the Asia Pacific region fell by 5.7% to $483 million.
Segment-wise Sales: Footwear sales totaled $1.330 billion, a 0.4% increase from the previous year. Apparel sales, however, decreased by 2.3% to $666 million, and accessories sales fell by 5.4% to $483 million.
Direct-to-Consumer and Wholesale Businesses
Markus Neubrand, Puma’s CFO, highlighted that the direct-to-consumer business, driven by e-commerce, grew by 12%. In contrast, the wholesale business declined by 4%, mainly due to the influence of the United States and China.
Cost Optimization and Workforce Adjustments
In response to the challenges faced in Q1 2025, Puma has committed to executing its cost optimization program as planned. The company aims to reduce approximately 500 corporate positions globally by the end of Q2 2025.
Neubrand emphasized that Puma is focusing on controllable factors amidst the volatile global trade environment and macroeconomic uncertainty. The company has not quantified potential consequences of US tariffs at this time, having already reduced Chinese imports to the US.
Sales and EBIT Outlook for 2025
Puma expects adjusted sales to grow by a single-digit percentage, low to mid-single digits, in 2025 due to global trade uncertainties. The company is also executing a cost efficiency program, anticipating unique costs of up to $84 million related to unprofitable retail store closures, restructuring expenses, and other non-operating unique costs. Simultaneously, Puma expects to generate additional EBIT of up to $112 million in 2025.
Despite these cost-cutting measures, Puma plans to continue investing in its retail network, e-commerce business, storage, and digital infrastructure to achieve long-term growth objectives. The company anticipates capital expenditure (CAPEX) of approximately €336 million in 2025, up from €295 million in 2024.
Key Questions and Answers
- Q: What was Puma’s net income for Q1 2025? A: $0.561 million, a 99.5% decrease from Q1 2024.
- Q: How did Puma’s sales perform in Q1 2025 compared to the previous year? A: Total sales decreased by 1.3%, with a 4.2% increase in EMEA sales and declines in North America and Asia Pacific.
- Q: What is Puma’s outlook for sales and EBIT in 2025? A: Puma expects adjusted sales to grow by a single-digit percentage in 2025 and anticipates additional EBIT of up to $112 million.
- Q: How is Puma addressing global trade uncertainties and macroeconomic volatility? A: Puma is focusing on controllable factors, executing a cost optimization program, and reducing corporate positions while continuing investments in retail, e-commerce, and digital infrastructure.
