PUMA Se

Q1 currency-adjusted sales declined 1% year over year; reported sales fell 6.3% due to FX. Gross profit margin improved 60 basis points to 47.7%. Adjusted EBIT was around EUR 64 million, up 5% year over year, while reported EBIT was about EUR 52 million, up almost 20% year over year. DTC sales grew 3.8%, wholesale fell 2.8%, inventories declined about 9% to EUR 1.9 billion, working capital fell almost 10% to EUR 1.8 billion, and free cash flow was minus EUR 201 million. For 2026, Puma reiterated currency-adjusted sales down low to mid-single digits, EBIT of minus EUR 50 million to minus EUR 150 million, and CapEx of around EUR 200 million; management also said Q2 sales growth should be clearly below Q1 and H2 should be stronger than H1.

Arthur Hoeld framed Q1 as a solid, expected start to a transition year, saying Puma is making significant progress in its operating model and remains confident in its plan despite macro and geopolitical uncertainty. He emphasized that brand momentum comes first and said Puma is working toward higher-quality revenue, better profitability, disciplined spending, and a stronger team. He also highlighted strong sports marketing and product wins in running, HYROX, football, and style, while acknowledging that style/lifestyle and brand heat still need more work into 2027.

Markus Neubrand said the quarter benefited from clearance and reset actions, with the positive impact of inventory clearance outweighing the drag from reduced undesirable business and lower promotions. He cited gross margin of 47.7%, OpEx excluding one-time effects down 5.5% to EUR 848 million, adjusted EBIT of about EUR 64 million, one-time effects of EUR 12.6 million, and free cash flow of minus EUR 201 million. He also noted inventories of EUR 1.9 billion, net debt of EUR 1.3 billion, cash of EUR 326 million, and about EUR 800 million of undrawn credit lines, while saying deleveraging is a clear priority and inventories should normalize by end-2026.

Analysts focused on the cadence of sales through the year, especially why Q2 should be weaker than Q1 despite the full-year guide. Management said Q2 will be more muted because the reset impact will be more pronounced, while clearance will continue but should gradually fade through the year. Questions also covered inventory normalization, OpEx, low-profile demand, NITRO commercialization, freight and input costs, and the Anta minority stake update; management said inventories should fall below 25% of sales by year-end, NITRO will be pushed across performance categories, freight contracts run through June with negotiations ongoing, and there was no update on the Anta transaction.