PUMA Se

Puma reported Q1 2026 currency-adjusted sales down 1% year over year, or down 6.3% reported due to FX headwinds. Gross profit margin improved 60 basis points to 47.7%, adjusted EBIT increased about 5% to around EUR 64 million, and EBIT rose to around EUR 52 million, up almost 20% year over year. Operating expenses excluding one-time effects fell 5.5% to EUR 848 million, inventories declined around 9% to EUR 1.9 billion, working capital fell almost 10% to EUR 1.8 billion, and free cash flow was negative EUR 201 million. For full-year 2026, management reiterated low- to mid-single-digit currency-adjusted sales decline, stronger second half than first half, Q2 sales growth clearly below Q1, substantial gross margin improvement, EBIT of minus EUR 50 million to minus EUR 150 million, and CapEx of around EUR 200 million.

Arthur Hoeld framed Q1 as a solid start to a transition year and said the company is making significant progress in its reset and operating model changes. He emphasized a strategy of first rebuilding brand momentum, then translating that into commercial success, with a focus on higher-quality revenue, better retail placement, and stronger brand heat into 2027 and beyond. His tone was confident but realistic: he repeatedly noted macro and geopolitical uncertainty, while saying Puma remains on track with its plans.

Markus Neubrand said Q1 benefited from a better mix of clearance and reset activity, with clearance more than offsetting the drag from lower-demand reset measures. He cited gross margin improvement to 47.7%, OpEx down 5.5% to EUR 848 million excluding one-time effects, inventories down to EUR 1.9 billion, and cash at EUR 326 million with total financial headroom of about EUR 1.1 billion including around EUR 800 million of unused credit lines. He also said net debt rose seasonally to EUR 1.3 billion and that deleveraging is a clear priority, while maintaining that free cash flow should be positive in 2026.

Analysts focused on why Q2 sales growth should be weaker than Q1 despite full-year guidance, and management said the second quarter will be more muted because reset actions, especially the removal of undesirable wholesale business, will be more pronounced. Questions also centered on inventory cleanup, gross margin support from reserve reversals, and whether those benefits will continue; management said inventories are slightly ahead of plan and should normalize below 25% of sales by year-end, with clearance and reserve reversals continuing through 2026. Other topics included low-profile demand, with Puma saying strength is visible in Asia and also in North America, and the timing of the Anta minority stake transaction, for which management said there was no new update.