HERZOGENAURACH (dpa-AFX) - German sportswear maker Puma SE (PMMAF.PK) reported that preliminary sales for the second quarter declined by 2.0% on currency-adjusted basis. In addition, the company cuts its financial outlook for the full year 2025 due to a softer than anticipated topline development and including the implications from U.S. Tariffs.
On a preliminary basis, sales for the second quarter declined currency-adjusted by 2.0% to 1.942 billion euros. The sales decline was driven by the key markets North America (-9.1%), Europe (-3.9%) and Greater China (-3.9%). While the sales in the rest of APAC also declined (-2.4%), Latin America (+16.1%), EEMEA (+0.5%) continued to grow.
The gross profit margin declined by 70 basis points to 46.1%, primarily reflecting increased promotional activity and unfavourable currency effects. This was partially offset by tailwinds from sourcing and freight, as well as a positive impact from distribution channel mix. The second quarter adjusted EBIT, excluding one-time costs, decreased to -13.2 million euros.
Looking ahead, PUMA said it no longer expects to achieve the currency-adjusted sales growth previously anticipated for the remainder of 2025. The softer topline performance observed in the second quarter is expected to persist for the remainder of 2025, resulting in higher inventory levels. Therefore, the company said it will continue to actively reduce inventory levels. Despite ongoing mitigating measures such as supply chain optimization, pricing adjustments and partner collaboration, the U.S. Tariffs are expected to have a mitigated negative impact in 2025 of around 80 million euros on gross profit.
The company now expects a decline in annual currency-adjusted sales in the low double-digit percentage range. This marks a notable downward revision from its earlier projection, which had expected a low- to mid-single-digit percentage increase. The company now expects to report a loss in EBIT for the full year 2025, marking a significant downward revision from its earlier guidance. Previously, it had forecasted EBIT ranging between 445 million euros and 525 million euros.
PUMA has revised its capital expenditure plans for the year and now expects to invest around 250 million euros in 2025 compared to the prior estimation of around 300 million euros.
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