Puma shares (PUM.DE) continue to decline today, reaching levels not seen since 2015. The company’s sales and forecasts indicate a challenging period ahead, during which it may face margin pressure.
For the second time in seven weeks, the company has disappointed investors with weaker-than-expected results. It now forecasts another year of slow growth, citing trade tariffs, currency volatility, and geopolitical tensions. Adjusted earnings before interest and taxes (EBIT) for 2025 are expected to range between €520 million and €600 million, falling short of the market consensus of €674 million.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appOther apparel brands such as Adidas and Nike are also facing challenges, but Puma appears to be the weakest performer among them. Analysts are becoming increasingly pessimistic about Puma’s ability to enhance brand appeal and successfully promote key sneaker models set to launch this year. The company is experiencing weak sales in the Chinese market, while its U.S. sales may generate lower profits due to the potential impact of tariffs, which could likely raise Puma’s prices in the U.S. market.
Financial Results
- Total Sales: €2.29 billion, in line with the €2.29 billion forecast (higher footwear sales, lower apparel sales)
- EMEA Sales: €796.5 million vs. €759.4 million forecast
- Americas Sales: €986.3 million vs. €992 million forecast
- APAC Sales: €506.6 million vs. €536.8 million forecast
- Currency-Adjusted Sales Growth: +9.8% YoY vs. +9.87% forecast
Regional Year-over-Year Sales Growth:
- EMEA: +14.6% YoY vs. +12.1% forecast
- Americas: +6.5% YoY vs. +4.67% forecast
- APAC: +9.5% YoY vs. +13.8% forecast
Margins and Profitability:
- Gross Margin: 47.3% vs. 47.4% forecast
- EBIT: €109 million vs. €109 million forecast
- Dividend per Share: €0.61 vs. €0.76 forecast
Puma expects its sales to grow at a low- to mid-single-digit rate year-over-year.
In February 2025, the company launched the ‘NextLevel’ program, aiming for an 8.5% EBIT margin by 2027. Implementing this initiative will cost approximately €75 million this year, but the company expects to generate total cost savings of €100 million, ultimately leading to an additional profit of around €25 million.
Puma Shares (PUM.DE)
The stock is currently trading about 60% below the 200-session moving average (EMA200, red line), reaching levels last seen at the turn of 2015 and 2016.
Source: xStation5
With Forward PE close to 10 and current PE at 15, the valuation for the Puma seems to be close to neutral, given rising debt pile, sluggish sales and profitability prospects. Net margin is slightly positive, however if US tariffs will start, and sales in APAC market will slow down further, we cannot rule out the profitability pressure and negative net margin in 2025. The ROIC is constantly falling.
Source: XTB Research, Bloomberg Finance L.P.
Source: XTB Research, Bloomberg Finance L.P.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
