Puma warns of 'challenging' year ahead, shares plunge
By Abigail Townsend
Date: Wednesday 12 Mar 2025
(Sharecast News) - Shares in Puma plunged on Wednesday, after the German fashion and sports brand warned that mounting geopolitical tensions would hit growth.
The firm said trade disputes and other macroeconomic challenges were expected to dent both consumer sentiment and demand in key markets in 2025.
It forecast full-year currency-adjusted sales growth in the low to mid-single digit percentage range, and earnings before interest and tax of between €520m and €600m. That was below both the €690m expected by analysts and the €622m Puma posted last year.
The group also noted that the first quarter had got off to a poor start, and sales growth was now expected be down year-on-year, primarily due to a "soft performance" in the US and China. First-quarter EBIT was predicted to be "significantly" below last year's €159m.
As at 1115 GMT, the Munich-listed stock had shed 23% to reach its lowest level since 2016.
The outlook came as Puma posted full-year numbers for 2024. EBIT was flat at €622m, on currency-adjusted sales of €8.82bn, a 4.4% increase. Net income declined by 7.6% to €282m, larger due to higher net interest expenses.
Chief executive Arne Freundt said he was not satisfied with Puma's "stagnant profitability".
He continued: "We must address our current cost trend. We have already been taking decisive actions to improve the situation our nextlevel programme.
"Our outlook for 2025 is below the expectations we set a year ago, both in terms of top and bottom lines. We are fully aware of the root causes of our challenges and are addressing them with full focus and rigor."
The nextlevel efficiency programme, which will incur €75m in one-off costs this year, is intended to cut costs and boost both gross margin and free cash flow.
Freundt said 2025 would be a "challenging" year, but added: "In this volatile environment, we remain committed to doing what is right for the company in the long term."
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