Results of operations

Results of operations

* Previous year figures adjusted in connection with the discontinued operation PUMA United; see Chapter 24 of the notes to the consolidated financial statements

** adjusted for the figures presented in the One-time effects chapter

Illustration of earnings development in 2025 compared to the outlook

In the outlook in the combined management report for 2024, PUMA forecast an adjusted operating result (adjusted EBIT) in the range between € 520 million and € 600 million for financial year 2025 (EBIT 2024 before adjustment for discontinued operations: € 622.0 million). The outlook was adjusted at the end of the second quarter. To focus more strongly on the total operating result, which economically represents the decisive key figure for corporate success, the internal reporting was changed to the reported operating result (EBIT). For this, a loss was expected for the full year 2025, which was mainly attributable to the weaker sales and gross profit margin development as part of the reset, the impacts of US tariffs and additional actions, including one-off costs, to further adjust the cost base in the second half of the year. These adjustments at the end of the second quarter did not yet include the changes from PUMA United (discontinued operations) in the fourth quarter. The reported operating result (EBIT) for the full year 2025 was in line with the adjusted outlook. This was the result of offsetting effects: on the one hand, the US tariffs had less negative impacts than expected, while on the other hand, the actual inventory write-downs and the increased promotional activities in the wholesale business turned out to be higher than forecast.

The operating result in 2025 was significantly burdened by the transformation actions initiated as planned, which form the basis for gradual enhancements to the earnings position. PUMA’s goal in 2025 was to keep the temporary burdens on the development of the result resulting from the implementation of the strategic and operational actions as low as possible.

More details on earnings development in the financial year 2025 are provided below.

Gross profit margin

PUMA's gross profit in financial year 2025 decreased by 18.0% from € 3,997.8 million to € 3,279.6 million, and the gross profit margin declined by 270 basis points from 47.6% to 45.0%. This margin development was mainly due to higher inventory write-downs and increased promotional activities in the wholesale business. In addition, there were negative currency effects on the gross profit margin, primarily from the Turkish lira as well as the Mexican and Argentine peso, whereas the US dollar compensated to a lesser extent. Lower sourcing prices and the favourable distribution channel mix, with a higher share of own retail activities, had a positive impact on the gross profit margin. Conversely, tariffs, particularly due to US tariff policy, represented a burden. These could be reduced on the one hand by compensating measures in North America itself and on the other hand by optimising the countries of origin or local sourcing.

The gross profit margin in the Footwear product division decreased from 46.9% in the previous year to 44.3% in 2025. The gross profit margin for Apparel fell from 48.6% to 46.0% and the gross profit margin for Accessories decreased from 48.0% to 45.5% in 2025.

* includes adjustments in the years 2024 and 2025 related to the discontinued operation PUMA United; see Chapter 24 in the Notes to the consolidated financial statements. The years 2021 to 2023 were not retrospectively adjusted.

Licensing business

PUMA grants licences to independent partners for various product divisions, such as glasses, safety shoes, workwear and gaming accessories. In addition to design, development and manufacture, these companies are also responsible for product distribution. Income from licence agreements also includes some distribution licences for different markets. In this context, the business model of PUMA United in the North American market was converted to a pure licensing model starting in November 2025. Previously consolidated royalty income is also presented retrospectively in the continuing segment. PUMA's royalty and commission income increased by 4.4% to € 92.4 million in the financial year 2025 (previous year: € 88.5 million), driven mainly by the North American market.

Other operating income and expenses (adjusted)

In financial year 2025, the net expense of other operating income and expenses (OPEX), adjusted for one-time effects of € 191.6 million, remained constant at € 3,537.7 million compared to the previous year. The adjusted cost ratio (net expense as a percentage of sales) increased from 42.1% in the previous year to 48.5% in 2025.

The savings from the cost efficiency programme were offset by increased retail activities, which were attributable to growth in the DTC business, particularly in e-commerce. In addition, higher depreciation due to capital expenditure in the area of DTC and infrastructure as well as write-downs on receivables contributed to the overall higher costs. Marketing expenses as a percentage of sales increased due to the decline in sales. This development was in line with the implementation on a systematic basis of our strategic measures for future growth.

* includes adjustments in the years 2024 and 2025 in connection with the discontinued operation PUMA United, see Chapter 24 of the notes to the consolidated financial statements. The years 2021 to 2023 were not adjusted retrospectively. The year 2025 is also presented adjusted for one-time effects.

Sales and distribution expenses decreased by 0.5% to € 2,865.0 million after adjustment for one-time effects of € 43.0 million. The adjusted cost ratio was 39.3% of sales in 2025, compared with a cost ratio of 34.3% in the previous year. Adjusted marketing/retail expenses within sales and distribution expenses decreased by € 34.0 million or 2.0% compared with the previous year. The adjusted cost ratio increased to 23.3% of sales in 2025, compared with a cost ratio of 20.7% in the previous year. Adjusted other sales expenses, which mainly include sales-related costs and costs for warehousing and logistics, increased by 1.6% to € 1,162.6 million. This increase resulted mainly from the rise in warehousing and logistics costs.

Research and development/product management expenses decreased by 10.4% compared to the previous year, adjusted for one-time effects of € 22.1 million, to € 161.5 million, and the adjusted cost ratio increased slightly to 2.2% (previous year: 2.1%) of sales. Research and product development at PUMA mainly comprise the areas of innovation (new technologies), product design and model and collection development. The research and product development activities range from the analysis of scientific studies and customer surveys through the generation of creative ideas to the implementation of innovations in commercial products. The activities in research and product development are directly linked to sourcing activities.

Administrative and general expenses increased, adjusted for one-time effects of € 126.5 million, by 6.5% to € 516.7 million in 2025. This included expenses from write-downs on receivables amounting to € 29.9 million (previous year: € 5.1 million). The increase in these expenses resulted primarily from the insolvency filing of a major customer. The adjusted cost ratio of administrative and general expenses increased to 7.1% (previous year: 5.8%) of sales in 2025.

Depreciation and amortisation of € 391.2 million (previous year: € 370.2 million) was included in the respective costs. The increase compared to the previous year is due to capital expenditure on the Direct-to-Consumer business, warehouses and IT systems.

In addition, the respective costs included impairment losses which, adjusted for one-time effects of € 54.8 million, increased by € 12.4 million to € 20.3 million. Of this amount, € 19.5 million (previous year: € 7.9 million) relates to the valuation of rights of use of retail stores, mainly in North America in 2025.

Other operating income amounted to € 5.5 million in the past financial year (previous year: € 8.3 million) and included rental income and income from the sale of fixed assets.

Adjusted operating result (adjusted EBIT)

In the financial year 2025, the adjusted operating result, excluding one-time effects, amounted to € -165.6 million. The adjusted EBIT margin decreased from 6.5% in the previous year to -2.3% in 2025.

One-time effects

The excluded one-time effects amounting to € 191.6 million essentially included expenses in connection with the cost efficiency programme amounting to € 150.2 million. These consist in particular of personnel costs amounting to € 101.6 million. Furthermore, impairments were incurred due to infrastructural actions, consulting services and closing costs of retail stores. In addition, the impairment of goodwill amounting to € 41.4 million was allocated to one-time effects. No one-time effects were incurred in the previous year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

The earnings before interest (= financial result), taxes, depreciation and amortisation (including impairment losses and reversals of impairment losses) (EBITDA) decreased by 87.1% to € 116.0 million in financial year 2025 (previous year: € 897.3 million). The EBITDA margin decreased from 10.7% in the previous year to 1.6% in 2025. The included impairment losses and reversals of impairment losses, including one-time effects, amounted to a total of € 71.9 million in financial year 2025 (previous year: € 21.5 million).

Operating result (EBIT)

The operating result, including one-time effects, amounted to € -357.2 million in the 2025 financial year (previous year: € 548.7 million). The one-time effects were included in other operating expenses. The EBIT margin decreased from 6.5% in the previous year to -4.9% in 2025.

* includes adjustments in the years 2024 and 2025 in connection with the discontinued operation PUMA United, see Chapter 24 in the notes to the consolidated financial statements. The years 2021 to 2023 were not retrospectively adjusted.

Financial result

The financial result decreased in 2025 from a net € -149.0 million in the previous year to € -165.7 million. This reduction was essentially due to two opposing developments. On the one hand, the balance of other financial income and expenses decreased by € 75.3 million to € -49.5 million in 2025 compared to € 25.8 million in the previous year. On the other hand, there were positive effects in 2025 from the reduction in losses from foreign exchange differences by € 72.1 million to a total of € -16.4 million in 2025 compared to € -88.5 million in the previous year. Furthermore, the decline in interest income in 2025 to a total of € 13.1 million compared to € 31.4 million in the previous year contributed to the reduced financial result. The lower interest income was essentially attributable to lower bank balances as well as the reduced interest rate level in the hyperinflationary economy of Argentina. Interest expenses in 2025 amounted to a total of € -112.8 million (previous year: € -117.7 million).

Other financial income and expenses included in particular hedging gains and losses from free standing derivatives. These decreased by € 90.2 million to € -52.6 million (previous year: € 37.6 million), among other things due to the reclassification of derivatives to profit or loss following the termination of hedge accounting due to reductions in procurement volumes. In contrast, income and expenses from the forward component and the time value in connection with currency derivatives increased to a total of € 19.2 million (previous year: € 14.1 million). In addition, expenses from hyperinflation effects decreased to € -7.8 million (previous year: € -17.4 million).

In total, the financial result was characterised by lower interest income due to lower bank balances, the recognition of hedge effects in profit or loss and offsetting positive effects from currency translation.

Income taxes

Income tax expense remained almost unchanged compared to the previous year. Despite lower earnings before taxes (EBT) compared to the prior-year period, income taxes amounted to € 120.7 million (previous year: € 119.0 million). The compensating increase in income tax expense was attributable in particular to the write-down of deferred tax assets in the amount of € 216.1 million (previous year: € 11.0 million), primarily in the USA, China and the United Kingdom.

Loss/Profit from continuing operations

The loss from continuing operations in 2025 amounted to € -643.6 million compared with a profit from continuing operations of € 280.7 million in the previous year.

Profit from discontinued operations

The profit from discontinued operations relates to PUMA United. As part of ongoing reset measures and efforts to optimise the PUMA sales network, PUMA decided in the second half of 2025 to transition from the previous partnership model to a pure licensing model and implemented this modification on 1 November 2025. Accordingly, the key financial figures in the consolidated income statement for the current year and the prior period have been adjusted and the profit or loss of PUMA United is reported separately from continuing operations. In the financial year 2025, PUMA achieved a profit from discontinued operations of € 28.4 million (previous year: € 61.7 million) in addition to the license income explained above.

Net income attributable to non-controlling interests

Net income attributable to non-controlling interests, which were already reduced by license fees paid to PUMA under the partnership model, decreased by 50.1% to € 30.3 million in the 2025 financial year (previous year: € 60.7 million). The companies affected were PUMA United North America LLC, PUMA United Aviation North America LLC, PUMA United Canada ULC and Janed Canada LLC. The business purpose of these companies is mainly the sale of socks, bodywear, accessories and children's apparel in the North American market. PUMA United Aviation North America LLC was liquidated in the first half of 2025. The other companies mentioned were sold at the end of October 2025 and the PUMA United partnership model was converted into a pure licensing model.

Consolidated net income

Consolidated net income decreased in the 2025 financial year from € 281.6 million to € -645.5 million. This was mainly due to the negative changes in the individual line items of the consolidated income statement described above.

Earnings per share and diluted earnings per share decreased from € 1.89 in the previous year to € -4.38 in financial year 2025, in line with the development of the consolidated net income.