Statement regarding the business development and the overall situation of the group
The year 2025 was a year of reset. The actions initiated in the second half of the year and the new strategic priorities are necessary to establish PUMA as a top-3 sports brand globally. Business development in 2025 was therefore significantly impacted by the implementation of the reset actions. Nevertheless, we succeeded in limiting the currency-adjusted sales decline to 8.1%, whereas in our adjusted forecast we had still assumed a low double-digit percentage sales decline on a currency-adjusted basis. However, profitability in 2025 was negative as expected, as the significant sales decline was accompanied by a reduction in the gross profit margin. The operating result (EBIT) amounted to € -357.2 million and was negatively impacted by one-time effects totalling € 191.6 million. The operating result in 2025 was significantly impacted by the transformation actions initiated as planned, which form the basis for a gradual improvement in the earnings situation. PUMA’s goal in 2025 was to keep the temporary burdens on earnings development resulting from the implementation of the strategic and operational actions as low as possible.
The increase in inventories as of the balance sheet date was partially attributable to the withdrawal of inventory from the wholesale business to clean up the distribution channel. This was partially offset by a decrease in procurement orders - a measure to slow down inventory growth and avoid oversupply. In order to bring inventory levels back to an appropriate level by the end of 2026, PUMA plans to realise product sales through both its own outlets and the wholesale business using specific sales promotion measures; in addition, production orders for the year 2026 were simultaneously adjusted to the new situation.
With regard to the consolidated statement of financial position, we believe that PUMA continues to have a solid capital base. As of the balance sheet date, the PUMA Group's equity amounted to € 1.8 billion and the equity ratio was 27.3%.
The liquidity situation of PUMA SE was stable throughout the reporting period and fully guaranteed at all times. The Company has extensive cash and cash equivalents, unused credit lines and thus sufficient financing headroom to ensure the timely fulfilment of all payment obligations. However, based on the negative pre-tax result and the increase in working capital, Free cash flow was significantly negative at
€ -530.3 million. Cash and cash equivalents amounted to € 290.0 million as of the balance sheet date. However, PUMA has confirmed credit lines totalling € 2,562.8 million, of which € 1,202.2 million had not been utilised as of 31 December 2025. € 500.0 million of the confirmed credit lines relate to the conclusion of a bridge financing fully guaranteed by Santander CIB S.A. in December 2025. The disbursement is scheduled to take place in the first quarter of 2026 and serves to refinance drawings from the syndicated loan already concluded in 2024, creating expanded liquidity headroom and the resulting financing flexibility. Together with the existing promissory note loans, the issuance of new promissory note loans in 2025 and the issuance of new promissory note loans in 2026, these actions collectively strengthen both the breadth of the financing basis and the maturity profile, thereby sustainably reducing refinancing risks. The Management Board considers PUMA to be solidly financed overall.
Due to the negative consolidated net income in the past financial year, the Management Board and the Supervisory Board intend to propose to the Annual General Meeting on 19 May 2026 that no dividend be distributed for the coming year. PUMA's dividend policy normally provides for a dividend distribution of 25% to 40% of consolidated net income. Furthermore, the dividend distribution can be supplemented by a further 10% to 25% through an optional share repurchase programme. On 31 March 2025, PUMA SE completed the acquisition of shares under the share repurchase programme.
In the first half of the year, business development was unfavourable, burdened by a challenging market environment and subdued demand. Overall, business performance in the reporting period was shaped by the reset actions initiated in the second half of the year, which led to significant but temporary burdens on sales and earnings development. Overall, the Management Board is satisfied with the progress achieved within the scope of the transformation process and notes that the impacts on the net assets, financial position and results of operations are in line with expectations. The actions initiated and the strategic priorities defined as part of the transformation form the basis for a gradual enhancement of sales development and results of operations.
Overall, we are firmly convinced that the PUMA brand is intact and has considerable potential. Based on its long history, PUMA has an extensive product archive and, in our view, also strong credibility in key sports. We have identified the areas where we need to act decisively, and we have set strategic priorities to become a global sports brand with globally successful products and inspiring storytelling.
