Latest news with #MarkusNeubrand
Fibre2Fashion
09-05-2025
- Business
- Fibre2Fashion
Germany's Puma hits Q1 2025 sales of $2.27 bn amid global challenges
German sportswear brand Puma has reported first-quarter (Q1) 2025 sales of €2.1 billion (~$2.27 billion), reflecting a 1.3 per cent decline on a reported basis but a slight 0.1 per cent increase on a currency-adjusted basis (ca). The gross profit margin decreased by 60 basis points (bps) to 47 per cent. Puma's wholesale business declined by 3.6 per cent (ca) to €1,529.5 million, with the softness largely attributed to the US and China, as expected. In contrast, the direct-to-consumer (DTC) segment grew by 12 per cent (ca) to €546.5 million, driven by a 17.3 per cent (ca) increase in e-commerce and an 8.9 per cent (ca) rise in owned and operated retail store sales. The DTC share climbed to 26.3 per cent, up from 23.5 per cent in Q1 2024, Puma said in a press release. Sales in the Europe, Middle East, and Africa (EMEA) region rose by 5.1 per cent (ca) to €891.7 million, fuelled by strong double-digit growth in Eastern Europe, the Middle East, and Africa (EEMEA). In the Americas, sales declined by 2.7 per cent (ca) to €753.7 million, primarily due to weaker performance in North America, although Latin America achieved robust double-digit growth. Meanwhile, the Asia/Pacific region saw sales fall by 4.7 per cent (ca) to €430.5 million, impacted by continued softness in Greater China. Puma has reported sales of €2.1 billion (~$2.27 billion) in Q1 2025, down 1.3 per cent but up 0.1 per cent on currency-adjusted basis. DTC grew 12 per cent, while wholesale fell 3.6 per cent due to softness in the US and China. EMEA sales rose, while Asia-Pacific and Americas declined. Footwear grew 2.4 per cent. Puma maintained its FY25 outlook, excluding impacts from new US tariffs. The footwear sales increased by 2.4 per cent (ca) to €1,186 million, driven by the running, basketball and sportstyle categories. Sales in apparel decreased by 1.5 per cent (ca) to €594.3 million while accessories decreased by 5.7 per cent to €295.7 million due to golf. In terms of product development, Puma unveiled 'Go Wild', its largest brand campaign to date, with the first chapter spotlighting running. The brand motivated runners at the Boston and London Marathons with the debut of its fastest-ever racing shoe, the 'Fast-R Nitro Elite 3'. In fitness, Puma and Hyrox introduced their first joint collection, comprising co-branded footwear and performance apparel. Additionally, Puma achieved a major sustainability milestone in 2024 by producing 90 per cent of its products using recycled or certified materials. 'In the first quarter and despite a challenging environment, Puma achieved sales on last year's level in constant currencies. Our DTC business, driven by e-commerce, grew by 12 per cent, while our wholesale business declined by 4 per cent—primarily because of the US and China. Our adjusted operating profit came in broadly in line with our expectations,' said Markus Neubrand, chief financial officer (CFO) at Puma. 'Despite the challenges we had to face in the first quarter, such as a slightly decreasing gross profit margin and higher operating expenses, we remain committed to executing our next level cost efficiency program which is progressing as planned. We are on track to have approximately 500 corporate positions reduced globally by the end of the second quarter 2025,' added Neubrand. For full FY25, the company forecasts adjusted EBIT (excluding one-time costs) between €520 million and €600 million, with capital expenditure (capex) projected at around €300 million. The outlook does not account for potential impacts from US tariffs announced after the company's initial forecast on March 11, 2025, added the release. The company further anticipates ca sales growth in the low- to mid-single-digit percentage range for the full financial year. Puma is actively implementing its nextlevel cost efficiency programme, which is expected to result in one-time costs of up to €75 million in 2025. 'In the evolving global trade landscape and amidst macroeconomic volatility, we concentrate on controllable factors and diligently serve our retail partners, consumers, and brand ambassadors. Our outlook for the financial year 2025 remains unchanged. Due to the highly uncertain implications from the US tariffs, we are not quantifying the potential implications at this stage. We already reduced US imports from China, and we will continue to remain agile and ready to manage the increased market volatility and swiftly respond to changing external conditions,' said Neubrand. Fibre2Fashion News Desk (SG)
Fashion Network
08-05-2025
- Business
- Fashion Network
Puma sees Q1 profit fall by 99.5% amid macroeconomic challenges
German sportswear manufacturer Puma reported a sharp decline in its net profit for the first quarter of 2025, falling to just 0.5 million euros. This marks a dramatic 99.5% drop compared to the same period in 2024, according to financial results released by the company on Thursday. The company's adjusted earnings before interest and taxes (EBIT) reached 75.7 million euros for the quarter, down 52.4% year-over-year. Revenue totaled 2.076 billion euros, representing a 1.3% decrease from the previous year. Sales in the EMEA region (Europe, Middle East and Africa) grew 4.2% to 891.7 million euros, while revenue in the Americas dropped 4.6% to 753.7 million euros. Sales in the Asia-Pacific region declined 5.7% to 430.5 million euros. Between January and March 2025, Puma's footwear sales rose 0.4% to 1.186 billion euros. Apparel sales fell 2.3% to 594.3 million euros, and accessories dropped 5.4% to 430.5 million euros. 'Our direct-to-consumer business, driven by e-commerce, grew 12%, while our wholesale segment declined 4%, mainly due to trends in the U.S. and China,' said Puma's chief financial officer Markus Neubrand. He added that despite a challenging first quarter, the company remains committed to its cost optimization program, which is progressing as planned. 'We are on track to reduce approximately 500 corporate positions globally by the end of the second quarter of 2025,' Neubrand confirmed. Addressing the shifting dynamics of global trade and ongoing macroeconomic volatility, Puma stated it is focusing on controllable factors and maintained its full-year guidance for 2025. 'Due to the uncertainty surrounding U.S. tariffs, we are not currently quantifying their potential impact,' Neubrand added, noting the company has already reduced its U.S. imports from China. Puma maintains its forecast for full-year currency-adjusted sales growth in the low-to-mid-single-digit percentage range. At the same time, the company continues to roll out its cost-efficiency program, which is expected to generate one-time expenses of up to 75 million euros. These costs relate to the closure of unprofitable retail locations, restructuring efforts, and other non-operating items. As a result of these measures, Puma targets an additional EBIT gain of up to 100 million euros in 2025. Despite cost cuts, the company plans to continue investing in its retail network, e-commerce business, and digital and warehouse infrastructure to support long-term growth. Puma is targeting capital expenditures (Capex) of approximately 300 million euros in 2025, up from 263 million euros in 2024.
Fashion Network
08-05-2025
- Business
- Fashion Network
Puma sees Q1 profit fall by 99.5% amid macroeconomic challenges
German sportswear manufacturer Puma reported a sharp decline in its net profit for the first quarter of 2025, falling to just 0.5 million euros. This marks a dramatic 99.5% drop compared to the same period in 2024, according to financial results released by the company on Thursday. The company's adjusted earnings before interest and taxes (EBIT) reached 75.7 million euros for the quarter, down 52.4% year-over-year. Revenue totaled 2.076 billion euros, representing a 1.3% decrease from the previous year. Sales in the EMEA region (Europe, Middle East and Africa) grew 4.2% to 891.7 million euros, while revenue in the Americas dropped 4.6% to 753.7 million euros. Sales in the Asia-Pacific region declined 5.7% to 430.5 million euros. Between January and March 2025, Puma's footwear sales rose 0.4% to 1.186 billion euros. Apparel sales fell 2.3% to 594.3 million euros, and accessories dropped 5.4% to 430.5 million euros. 'Our direct-to-consumer business, driven by e-commerce, grew 12%, while our wholesale segment declined 4%, mainly due to trends in the U.S. and China,' said Puma's chief financial officer Markus Neubrand. He added that despite a challenging first quarter, the company remains committed to its cost optimization program, which is progressing as planned. 'We are on track to reduce approximately 500 corporate positions globally by the end of the second quarter of 2025,' Neubrand confirmed. Addressing the shifting dynamics of global trade and ongoing macroeconomic volatility, Puma stated it is focusing on controllable factors and maintained its full-year guidance for 2025. 'Due to the uncertainty surrounding U.S. tariffs, we are not currently quantifying their potential impact,' Neubrand added, noting the company has already reduced its U.S. imports from China. Puma maintains its forecast for full-year currency-adjusted sales growth in the low-to-mid-single-digit percentage range. At the same time, the company continues to roll out its cost-efficiency program, which is expected to generate one-time expenses of up to 75 million euros. These costs relate to the closure of unprofitable retail locations, restructuring efforts, and other non-operating items. As a result of these measures, Puma targets an additional EBIT gain of up to 100 million euros in 2025. Despite cost cuts, the company plans to continue investing in its retail network, e-commerce business, and digital and warehouse infrastructure to support long-term growth. Puma is targeting capital expenditures (Capex) of approximately 300 million euros in 2025, up from 263 million euros in 2024.
Fashion Network
08-05-2025
- Business
- Fashion Network
Puma sees Q1 profit fall by 99.5% amid macroeconomic challenges
German sportswear manufacturer Puma reported a sharp decline in its net profit for the first quarter of 2025, falling to just 0.5 million euros. This marks a dramatic 99.5% drop compared to the same period in 2024, according to financial results released by the company on Thursday. The company's adjusted earnings before interest and taxes (EBIT) reached 75.7 million euros for the quarter, down 52.4% year-over-year. Revenue totalled 2.076 billion euros, representing a 1.3% decrease from the previous year. Sales in the EMEA region (Europe, Middle East and Africa) grew 4.2% to 891.7 million euros, while revenue in the Americas dropped 4.6% to 753.7 million euros. Sales in the Asia-Pacific region declined 5.7% to 430.5 million euros. Between January and March 2025, Puma's footwear sales rose 0.4% to 1.186 billion euros. Apparel sales fell 2.3% to 594.3 million euros, and accessories dropped 5.4% to 430.5 million euros. 'Our direct-to-consumer business, driven by e-commerce, grew 12%, while our wholesale segment declined 4%, mainly due to trends in the U.S. and China,' said Puma's chief financial officer Markus Neubrand. He added that despite a challenging first quarter, the company remains committed to its cost optimisation programme, which is progressing as planned. 'We are on track to reduce approximately 500 corporate positions globally by the end of the second quarter of 2025,' Neubrand confirmed. Addressing the shifting dynamics of global trade and ongoing macroeconomic volatility, Puma stated it is focusing on controllable factors and maintained its full-year guidance for 2025. 'Due to the uncertainty surrounding U.S. tariffs, we are not currently quantifying their potential impact,' Neubrand added, noting the company has already reduced its U.S. imports from China. Puma maintains its forecast for full-year currency-adjusted sales growth in the low-to-mid-single-digit percentage range. At the same time, the company continues to roll out its cost-efficiency program, which is expected to generate one-time expenses of up to 75 million euros. These costs relate to the closure of unprofitable retail locations, restructuring efforts, and other non-operating items. As a result of these measures, Puma targets an additional EBIT gain of up to 100 million euros in 2025. Despite cost cuts, the company plans to continue investing in its retail network, e-commerce business, and digital and warehouse infrastructure to support long-term growth. Puma is targeting capital expenditures (Capex) of approximately 300 million euros in 2025, up from 263 million euros in 2024.
Fashion Network
08-05-2025
- Business
- Fashion Network
Puma sees Q1 profit fall by 99.5% amid macroeconomic challenges
German sportswear manufacturer Puma reported a sharp decline in its net profit for the first quarter of 2025, falling to just 0.5 million euros. This marks a dramatic 99.5% drop compared to the same period in 2024, according to financial results released by the company on Thursday. The company's adjusted earnings before interest and taxes (EBIT) reached 75.7 million euros for the quarter, down 52.4% year-over-year. Revenue totaled 2.076 billion euros, representing a 1.3% decrease from the previous year. Sales in the EMEA region (Europe, Middle East and Africa) grew 4.2% to 891.7 million euros, while revenue in the Americas dropped 4.6% to 753.7 million euros. Sales in the Asia-Pacific region declined 5.7% to 430.5 million euros. Between January and March 2025, Puma's footwear sales rose 0.4% to 1.186 billion euros. Apparel sales fell 2.3% to 594.3 million euros, and accessories dropped 5.4% to 430.5 million euros. 'Our direct-to-consumer business, driven by e-commerce, grew 12%, while our wholesale segment declined 4%, mainly due to trends in the U.S. and China,' said Puma's chief financial officer Markus Neubrand. He added that despite a challenging first quarter, the company remains committed to its cost optimization program, which is progressing as planned. 'We are on track to reduce approximately 500 corporate positions globally by the end of the second quarter of 2025,' Neubrand confirmed. Addressing the shifting dynamics of global trade and ongoing macroeconomic volatility, Puma stated it is focusing on controllable factors and maintained its full-year guidance for 2025. 'Due to the uncertainty surrounding U.S. tariffs, we are not currently quantifying their potential impact,' Neubrand added, noting the company has already reduced its U.S. imports from China. Puma maintains its forecast for full-year currency-adjusted sales growth in the low-to-mid-single-digit percentage range. At the same time, the company continues to roll out its cost-efficiency program, which is expected to generate one-time expenses of up to 75 million euros. These costs relate to the closure of unprofitable retail locations, restructuring efforts, and other non-operating items. As a result of these measures, Puma targets an additional EBIT gain of up to 100 million euros in 2025. Despite cost cuts, the company plans to continue investing in its retail network, e-commerce business, and digital and warehouse infrastructure to support long-term growth. Puma is targeting capital expenditures (Capex) of approximately 300 million euros in 2025, up from 263 million euros in 2024.
