German sportswear brand Puma reported flat first-quarter sales and a decline in its profit margin on Thursday, and maintained its 2025 outlook, excluding any impact from US tariffs.
Puma replaced its CEO last month after a string of profit warnings as the company struggled to drive consistent sales growth, with its new shoes ranges like the Speedcat not doing as well as the company had expected.
Shares were up around 2% in early trading on Thursday. Puma's stock is down 47% since the start of the year, as missed sales and profit expectations weigh.
First-quarter sales of 2.08 billion euros ($2.35 billion) were slightly better than analysts' average forecast of 2.04 billion euros, and up 0.1% from the first quarter of last year.
Weaker sales to retailers in the US and China drove Puma's wholesale business - its main sales driver - down by 3.6%, but stronger online sales helped its direct-to-consumer business grow 12% to 546.5 million euros.
Puma has named former Adidas sales chief Arthur Hoeld as its new CEO to turn performance around. The board is leading the company until Hoeld takes over on July 1.
The company's gross profit margin for the first quarter declined by 0.6 percentage points to 47%.
Puma stuck to its 2025 outlook for "low-to mid-single-digit" sales growth, but said that excludes any impact from US tariffs.
It has already reduced its US imports from China, which are subject to tariffs of 145%, Chief Financial Officer Markus Neubrand said.
Like its competitors Adidas and Nike, Puma would be hit hard if US President Donald Trump reinstates steep tariffs on Southeast Asia, currently paused until July.
Puma buys 28% of its products from factories in China, with Vietnam a close second at 26%, and Cambodia producing 16%.
It plans to cut 500 corporate positions globally by the end of the second quarter as part of a cost-cutting drive, Neubrand said in March.
