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1. Company Snapshot

1.a. Company Description

PUMA SE, together with its subsidiaries, designs, develops, sells, and markets footwear, apparel, and accessories for men, women, and kids in Europe, the Middle East, Africa, the Americas, Greater China, and the Asia Pacific.The company offers performance and sport-inspired lifestyle products in categories, such as football, cricket, handball, rugby, volleyball, running, training and fitness, golf, and motorsports.It also issues licenses to independent partners to design, develop, manufacture, and sell watches, glasses, safety shoes, and gaming accessories, such as the Playseat.


The company sells its products through PUMA retail stores and factory outlets, as well as through online stores.It offers its products primarily under the PUMA and Cobra Golf brand names.The company was founded in 1924 and is headquartered in Herzogenaurach, Germany.

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1.b. Last Insights on PUM

PUMA SE's recent performance has been influenced by several factors. The company's third-quarter results, which included a year-over-year drop in sales to €1,955.7 million and a net loss of €62.3 million, led to a significant management restructuring. The appointment of Maria Valdes as Chief Brand Officer to oversee a unified brand and product organization may help drive future growth. Additionally, speculation of a potential takeover by investors, including China's Anta Sports, has contributed to recent share price movements. Strategic partnership announcements and ongoing supply chain realignments have also fueled renewed investor optimism.

1.c. Company Highlights

2. PUMA SE's Q1 2025 Earnings: Navigating Transition with Strategic Initiatives

PUMA SE reported Q1 2025 earnings with revenues of EUR 2.1 billion, flat in constant currencies, reflecting a strategic shift towards direct-to-consumer (DTC) sales, which grew 12%, driven by a 17% surge in e-commerce. Wholesale sales declined 4%, primarily in the US and China, highlighting challenges in these markets. The gross profit margin dipped to 47%, impacted by currency headwinds and inventory valuation effects. Adjusted EBIT fell 52% to EUR 76 million, attributed to one-time costs of EUR 18 million from the nextlevel efficiency program.

Publication Date: May -12

📋 Highlights
  • Flat Revenue with DTC Growth: - Sales were flat at EUR 2.1 billion in constant currencies, with DTC growing 12% (e-commerce up 17%) and wholesale declining 4%.
  • Regional Performance Mixed: - EMEA grew 5.1%, while Americas and APAC declined 2.7% and 4.7%, respectively.
  • Footwear Drives Growth, Others Decline: - Footwear sales grew 2.4%, while apparel and accessories declined 1.5% and 5.7%.
  • Gross Margin and EBIT Drop: - Gross profit margin fell 60 basis points to 47%, with adjusted EBIT down 52% to EUR 76 million.
  • Nextlevel Program Progress: - Cost efficiency program expects up to EUR 75 million in one-time costs, with EBIT contributions of up to EUR 100 million.

Leadership Transition and Brand Investments

PUMA is undergoing a leadership transition with Arthur set to become CEO in July, following the departure of the current CEO due to strategic execution differences. The company launched its "Go Wild" campaign, focusing on running, and introduced new products like the PUMA Deviate NITRO Elite 3, enhancing brand visibility and appeal. CFO Markus Neubrand emphasized the importance of stability during this transition period, stating, "The transition plan is in place, and we are addressing the US tariff situation proactively."

Regional Performance and Cost Efficiency

EMEA sales grew 5.1%, offsetting declines in the Americas (-2.7%) and APAC (-4.7%). The nextlevel program aims to improve margins and reduce costs, with one-time costs of up to EUR 75 million expected in 2025, anticipating EBIT contributions of up to EUR 100 million. PUMA has reduced China sourcing to 10% for the US and optimized deliveries and pricing to mitigate tariff impacts.

Outlook and Valuation

PUMA maintained its 2025 outlook, expecting low to mid-single-digit sales growth and adjusted EBIT of EUR 520-600 million. Q2 sales are projected to grow in low single digits, with improving EBIT. Valuation metrics include a P/E ratio of 12.6, P/B of 1.25, and EV/EBITDA of 7.92, with a dividend yield of 3.41%, appealing to income investors.

Product Strategy and Operational Efficiency

The Speedcat franchise and collaborations, such as with K-Pop star Rosé, are driving growth, particularly in Asia. Management is focusing on simplifying operations and optimizing SKU complexity to enhance profitability. Despite wholesale challenges, the company is confident in its ability to navigate transitions and deliver on its strategic initiatives.

3. NewsRoom

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AeroVironment Expands Puma™ Visual Navigation System (VNS) Kit to Puma LE

Dec -04

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Puma Biotechnology Reports Inducement Awards Under Nasdaq Listing Rule 5635(c)(4)

Dec -02

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Puma opens largest-ever European flagship store in London

Dec -02

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Puma Acquisition Speculation Heats Up Again: All the Potential Suitors So Far

Dec -01

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PUMA Opens its Biggest European Flagship Store in the Heart of London, Bringing the Best of the Brand Closer to Consumers

Dec -01

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What Does PUMA’s 27.6% Jump Mean for Its True Value in 2025?

Nov -29

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PUMA (XTRA:PUM): Assessing Valuation After Recent 3% Share Price Dip

Nov -29

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Puma Shares Jump on China Bid Chatter

Nov -28

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.70%)

6. Segments

Footwear

Expected Growth: 6.5%

PUMA SE's 6.5% growth in footwear is driven by increasing popularity of athleisure wear, successful collaborations with celebrities and fashion brands, expansion into emerging markets, and strategic investments in e-commerce and digital marketing, resulting in increased brand awareness and sales.

Apparel

Expected Growth: 6.8%

PUMA SE's 6.8% apparel growth driven by increasing popularity of athleisure wear, successful marketing campaigns, and strategic partnerships with influential athletes and celebrities. Additionally, expansion into emerging markets, particularly in Asia, and a strong e-commerce platform have contributed to the growth.

Accessories

Expected Growth: 7.2%

PUMA SE's accessories segment growth of 7.2% is driven by increasing demand for athleisure wear, strategic partnerships with celebrities and sports teams, expansion into emerging markets, and effective e-commerce platforms. Additionally, innovative product designs, premiumization, and sustainability initiatives contribute to the segment's growth.

7. Detailed Products

Footwear

PUMA SE offers a wide range of footwear products, including running, training, football, and lifestyle shoes for men, women, and kids.

Apparel

PUMA SE designs and manufactures a variety of apparel products, including tops, bottoms, dresses, and outerwear for men, women, and kids.

Accessories

PUMA SE offers a range of accessories, including bags, hats, scarves, and socks, that complement its footwear and apparel products.

Licensing

PUMA SE licenses its brand and logo to other companies, allowing them to produce and sell PUMA-branded products, such as watches, eyewear, and bicycles.

8. PUMA SE's Porter Forces

Forces Ranking

Threat Of Substitutes

PUMA SE faces moderate threat from substitutes, as consumers have limited alternatives to athletic and casual footwear and apparel. However, the rise of athleisure wear has increased the threat of substitutes.

Bargaining Power Of Customers

PUMA SE's customers have low bargaining power due to the company's strong brand reputation and limited switching costs. However, the rise of e-commerce has increased price transparency, giving customers more bargaining power.

Bargaining Power Of Suppliers

PUMA SE's suppliers have moderate bargaining power due to the company's dependence on a few large suppliers. However, the company's strong relationships with suppliers and its ability to negotiate prices mitigate this threat.

Threat Of New Entrants

PUMA SE faces low threat from new entrants due to the high barriers to entry in the athletic and casual footwear and apparel market. The company's strong brand reputation, distribution network, and economies of scale make it difficult for new entrants to compete.

Intensity Of Rivalry

PUMA SE operates in a highly competitive market with intense rivalry among established players such as Nike, Adidas, and Under Armour. The company's ability to differentiate its products and maintain a strong brand reputation is crucial to competing in this market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.50%
Debt Cost 7.64%
Equity Weight 76.50%
Equity Cost 9.22%
WACC 8.85%
Leverage 30.72%

11. Quality Control: PUMA SE passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
De'Longhi

A-Score: 6.2/10

Value: 5.4

Growth: 5.7

Quality: 6.8

Yield: 6.9

Momentum: 6.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Inchcape

A-Score: 5.5/10

Value: 7.2

Growth: 5.9

Quality: 4.4

Yield: 6.2

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Skechers

A-Score: 4.8/10

Value: 4.6

Growth: 7.3

Quality: 6.1

Yield: 0.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Accor

A-Score: 4.8/10

Value: 3.6

Growth: 6.2

Quality: 5.3

Yield: 3.1

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
PUMA

A-Score: 3.6/10

Value: 7.7

Growth: 6.6

Quality: 2.8

Yield: 3.1

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Smurfit Kappa

A-Score: 3.3/10

Value: 3.3

Growth: 3.7

Quality: 3.0

Yield: 2.5

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.09$

Current Price

21.09$

Potential

-0.00%

Expected Cash-Flows