Puma cuts 2025 EBIT margin target as currency headwinds weigh

Credit: REUTERS/Leonhard Foeger

Recasts to focus on profit margin cut, adds details from CMD in paragraph 4-5, context in 6-7

Feb 29 (Reuters) - German sportswear company Puma PUMG.DEon Thursday lowered its profit margin target for 2025, as it anticipates significant headwinds from currencies to weigh further on the business.

Puma now targets its margin on earnings before interest and taxes (EBIT) to be between 8-8.5% by 2025.

It had previously forecast it would reach an EBIT margin of 10% by the same year, with 10 billion euros ($10.84 billion) in sales.

The company still aims to achieve its 10% margin goal in the longer term, CEO Arne Freundt said on the first day of the company's capital markets days, which run until Friday.

Freundt added that it expected Puma to record a high single digit compound annual growth rate by 2025.

With an average of 8% per year, Puma would reach the targeted 10 billion.

Earlier in the year, the company had said it expected currency-adjusted salesin 2024 to grow by a mid-single-digit percentage, after its 2023 results were hit by a 54% plunge in the value of the Argentine peso in December.

($1 = 0.9227 euros)

(Reporting by Linda Pasquini and Alexander Huebner, Editing by Rachel More)

((linda.pasquini@thomsonreuters.com; +48 58 7785261;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.