Puma: share collapses as 2025 forecasts disappoint
(CercleFinance.com) - On Tuesday evening, Puma said it expected a difficult economic environment, notably due to the implementation of new customs duties, to weigh on its business in 2025, an announcement that sent its share price into freefall on the Frankfurt Stock Exchange.
In a press release published yesterday evening, the sports equipment manufacturer said it expected sales growth adjusted for exchange rates to be less than 5% this year, below the market consensus of 7%.
Adjusted EBIT is expected to be between E520m and E600m, compared with the average of E683m forecast by analysts.
Stifel's teams describe this as a real "shock", given that the Herzogenaurach-based group issued a warning on its FY 2024 results just seven weeks ago, and unveiled an outlook for 2027 that was deemed disappointing.
This strongly calls into question the fundamentals of our investment thesis, based on the brand's appeal and untapped potential in terms of margins, Stifel says.
We understand the current lack of visibility regarding the US and China, but find it hard to understand the extent of the earnings revisions, the broker adds, which nevertheless maintains its Buy recommendation on the stock, along with its target price of E43.
This disappointment was compounded by lacklustre FY 2024 results, which were in line with analysts' forecasts.
EBIT was flat at E622m last year, based on sales that are up 4.4%, adjusted for exchange rates (+2.5% as reported).
Puma shares collapsed 24%, posting the biggest drop on the STOXX 600 European stock index, which was up 0.8% at the same time. Its competitor adidas was stable.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
In a press release published yesterday evening, the sports equipment manufacturer said it expected sales growth adjusted for exchange rates to be less than 5% this year, below the market consensus of 7%.
Adjusted EBIT is expected to be between E520m and E600m, compared with the average of E683m forecast by analysts.
Stifel's teams describe this as a real "shock", given that the Herzogenaurach-based group issued a warning on its FY 2024 results just seven weeks ago, and unveiled an outlook for 2027 that was deemed disappointing.
This strongly calls into question the fundamentals of our investment thesis, based on the brand's appeal and untapped potential in terms of margins, Stifel says.
We understand the current lack of visibility regarding the US and China, but find it hard to understand the extent of the earnings revisions, the broker adds, which nevertheless maintains its Buy recommendation on the stock, along with its target price of E43.
This disappointment was compounded by lacklustre FY 2024 results, which were in line with analysts' forecasts.
EBIT was flat at E622m last year, based on sales that are up 4.4%, adjusted for exchange rates (+2.5% as reported).
Puma shares collapsed 24%, posting the biggest drop on the STOXX 600 European stock index, which was up 0.8% at the same time. Its competitor adidas was stable.
Copyright (c) 2025 CercleFinance.com. All rights reserved.