In This Article:
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Sales: EUR2.1 billion, flat in constant currencies.
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D2C Business Growth: Up 12%, with e-commerce growing by 17.3%.
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Wholesale Business: Down 3.6%, mainly due to declines in the US and China.
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Gross Profit Margin: Decreased by 60 basis points to 47%.
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Operating Expenses: Increased by 7.1%.
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Adjusted EBIT: EUR76 million, a decrease of 52%.
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EBITDA Before Special Items: Decreased by 35% to EUR156 million.
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Net Income: EUR0.5 million.
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Inventory Increase: Up 21% currency adjusted, 16% in euro terms to EUR2.1 billion.
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Trade Receivables: Increased by 6% to EUR1.5 billion.
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Trade Payables: Increased by 17% to EUR1.4 billion.
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Operating Working Capital: Up 7% to EUR2.4 billion.
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Regional Sales Performance: EMEA up 5.1%, Americas down 2.7%, APAC down 4.7%.
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One-Time Costs: EUR180 million in Q1 related to the next level cost efficiency program.
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2025 Outlook: Currency adjusted sales growth of low to mid-single digit; adjusted EBIT between EUR520 million and EUR600 million.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Puma SE (PMMAF) reported sales and adjusted operating results slightly ahead of expectations for Q1 2025.
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The Direct-to-Consumer (D2C) business grew by 12%, with e-commerce leading at 17% growth.
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The 'Go Wild' brand campaign, particularly in running, showed strong initial results with significant global visibility.
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Puma introduced several innovative products, including the Puma Deviate Nitro Elite 3 and the Puma Fast R3, enhancing their product lineup.
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The Speedcat franchise capitalized on the low profile trend, gaining popularity in Asia and among fashion influencers.
Negative Points
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Wholesale business declined by 4%, primarily due to challenges in the US and China markets.
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Gross profit margin decreased by 60 basis points, impacted by currency headwinds and absence of last year's inventory evaluation benefits.
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Operating expenses increased by 7.1%, driven by growth in D2C business and higher marketing activities.
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Adjusted EBIT decreased by 52% to EUR76 million due to lower gross profit margin and higher OpEx.
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The US market faces uncertainty due to new tariffs, with potential impacts on sourcing costs and pricing strategies.
Q & A Highlights
Q: Can you provide insights on the potential impact of US tariffs on Puma's financials and when these might affect the P&L? A: The US tariffs situation remains uncertain, making it difficult to provide precise impacts. However, Puma has prepared various scenarios to mitigate potential effects. The first slight impact on the P&L might be seen in Q2, with more significant effects expected in the second half of the year. It's important to note that 80% of Puma's business is outside the US.