Companies

Puma issues downbeat outlook for 2025

Mar 19, 2025 Germany

The German sportswear company has posted solid sales growth on a currency-adjusted basis and improved our gross profit margin in 2024. However, this is not enough to offset a pessimistic outlook for 2025

“Despite these successes, I am not satisfied with our stagnant profitability. We must address our current cost trend and we have already been taking decisive actions to improve the situation with our nextlevel programme. Our outlook for 2025 is below the expectations we set a year ago, both in terms of top and bottom lines”, commented Arne Freundt, Chief Executive Officer of Puma.

For the current fiscal year, Puma expects currency-adjusted sales growth in the low- to mid-single-digit percentage range and adjusted EBIT excluding one-time charges in the range of 520 to 600 million euros.

The sportswear company pointed out that the nextlevel cost efficiency programme is expected to incur one-time costs of up to 75 million euros in 2025, which are related to the closure of unprofitable owned & operated retail stores, restructuring expenses and other one-time non-operating costs.

Full Year Results

The announcement of the full year outlook comes as the company reports its final 2024 figures.

As previously expected, Puma’s 2024 sales reached 8.82 billion euros, supported by growth across all regions, product divisions, and distribution channels. Currency was a significant headwind, negatively impacting sales in euro terms by approximately 150 million euros.

Full year gross profit margin increased by 100 basis points year-on-year to 47.4%. Currency and promotional headwinds were offset by a favourable product and channel mix and tailwinds from sourcing and freight, Puma said.

The company’s operating expenses grew by 5.2% in 2024 to 3.58 billion euros, as compared to the prior year, mainly due to growth in the DTC business and investments in warehouse and digital infrastructure.

Puma’s EBIT of 622.0 million euros was in line with the EBIT of 621.6 million euros recorded in 2023, resulting in a full year EBIT margin of 7.1%, as gross profit margin improvements were offset by higher operating expenses.

In 2024, the company’s full year net income decreased by 7.6% to 281.6 million euros, on a comparable basis to the previous year, with earnings per share of 1.89 euros (FY 2023: 2.03 euros).

Puma pointed out that inventories increased by 11.6% to 2.01 billion euros and that free cash flow increased by 25.8% to 464 million euros, as compared to the previous fiscal year.

Image Credits: modernnotoriety.com

Germany Companies Puma Results Sportswear Year Results