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.