Puma warns of lower 2025 sales and swings to quarterly loss

Core Viewpoint - Puma anticipates a low double-digit percentage decline in full-year 2025 sales on a currency-adjusted basis, alongside a reported loss in EBIT, with planned capital expenditure around €250 million [1] Group 1: Sales Performance - In Q3 2025, sales fell 10.4% on a currency-adjusted basis to €1.95 billion, with currency movements reducing revenue by €125 million, leading to a reported sales decline of 15.3% [1] - Wholesale revenue dropped 15.4% to €1.38 billion, while direct-to-consumer (DTC) sales rose 4.5% to €570 million, driven by a 5.6% increase in e-commerce [2] - Sales in the Americas fell 15.2% to €678.1 million, with the majority of the decrease from North America; Asia Pacific sales decreased 9% to €367.1 million, and Europe and Middle East revenue declined 7.1% to €910.6 million [3] Group 2: Product Categories and Margins - All product categories were affected by the strategic reset, with footwear sales declining 9.9% to €1.04 billion and apparel revenue falling 12.8% to €635.5 million [4] - Gross margin contracted by 260 basis points to 45.2% from 47.9% a year earlier, while operating expenses decreased 2.6% to €850.6 million [4] Group 3: Financial Results - Adjusted EBIT, excluding one-time costs, dropped to €39.5 million from €237 million in Q3 2024 due to lower sales and margin pressure; reported EBIT was €29.4 million, down from €237 million a year earlier [5] - Puma recorded a net loss of €62.3 million for the quarter, compared to net income of €127.8 million in the same period of the previous year [6] Group 4: Strategic Actions - The CEO stated that 2025 would be a year of reset, with steps taken to clean up distribution, improve cash management, and reset operational expenses [7]