Puma: Still in transition

Research evidence excerpt

Puma: Still in transition

w, Puma is still at an early stage of its turnaround. We have Specialist Sales contact details:

not identified any early signs of meaningful inflection either in product heat or in Olivia Petronilho - Specialist Sales -

brand perception, as confirmed by our recent channel checks. This is not helped by an European Consumer

otherwise challenging consumer environment, as already flagged by Puma and other (44-20) 3493-3709

industry participants. We remain Neutral at this stage. olivia.b.petronilho@jpmorgan.com

Key Changes (FYE Dec)

Additional takeaways from the call include:

Prev Cur Δ

• Outlook: In addition to confirming FY guidance, management guided for Q3 RevenueRevenue -- 26E27E (€(€ mn)mn) 6,9207,222 6,9937,317 1.0%1.3%

sales to decline but to improve sequentially from Q2, with further improvement Adj. EPS - 26E (€) (0.85) (0.82) 4.3%

into Q4. Management reiterated that 2027 will be a year of growth, built on Adj. EPS - 27E (€) 0.33 0.34 3.8%

momentum in their four DNA categories, DTC acceleration, and rebuilding Adj. EBITDA - 26E (€ mn) 370 371 0.1%

Adj. EBITDA - 27E (€ mn) 613 616 0.6% wholesale. They assumed industry growth of LSD to MSD next year.

• Product: Running/Training (NITRO) and HYROX were the highlight of Style Exposure

Puma’s performance category. Speedcat/Low-profile remains the standout in

Sports Style, with strong momentum at select NA and SE Asia accounts.

Management highlighted strong World Cup brand exposure and jersey sell-

out, but no significant commercial gain from the tournament.

• Inventory: Inventories declined -15.3% to €1.8bn and continued to fall

sequentially in Q2, supported by lower purchasing volumes and ongoing

clearance, primarily via factory outlets. Management stated they are "very