Fashion
Amazon sites in Italy raided by police in China smuggling probe, sources say
By
Reuters
Published
November 24, 2025
Italian police carried out searches and seizures at two Amazon sites in Italy on Monday as part of an investigation into the alleged smuggling of Chinese goods, three people with direct knowledge of the matter said.
Dozens of officers from the Guardia di Finanza tax police and the customs agency seized around 5,000 products at a logistics hub operated by the e-commerce giant in Cividate al Piano, in the northern province of Bergamo, the sources said.
At Amazon’s Italian headquarters in central Milan, police seized IT equipment and identified the Amazon manager responsible for the transportation of goods within Italy, the sources added. Amazon in Italy was not immediately available for comment.
Italian prosecutors allege that Amazon acts as a kind of “Trojan horse” allowing an as yet unknown number of Chinese goods to circulate in Italy without being appropriately taxed, a court document showed on Monday.
Among the products seized at the Bergamo centre were toys, mobile phone covers, air fryers, pens and small scissors. It was not immediately clear what impact the two operations would have on Amazon’s activities in Italy.
The smuggling probe is a new line of inquiry stemming from an investigation into an alleged 1.2 billion euro tax evasion case.
The new case, led by Milan prosecutors together with the Monza branch of the Guardia di Finanza, alleges smuggling offences by dozens of Italian companies, many of which are believed to be fronts for Chinese entities, and the manager in charge of the movement of goods via Amazon.
Prosecutors suspect that goods are being brought from China into the European Union, and then into Italy, through currently unknown channels, without sales taxes or customs duties being paid. The products are then allegedly moved and sold in Italy via Amazon’s marketplace. Milan prosecutors are investigating both suspected smuggling and violations of the EU customs code.
Since last summer, two other ongoing operations have proceeded with Amazon’s cooperation due to the complexity of managing goods flows in the e-commerce giant’s logistics hubs. Three people with direct knowledge of the matter said the number of products involved could total half a million, with the probe expected to be extended to the rest of the European Union.
Milan prosecutors were summoned to The Hague headquarters of the EU agency for criminal justice cooperation Eurojust in July, where they presented the scope of their investigation to counterparts from several EU countries, including Germany, France, the Netherlands, Poland, Spain, Belgium, Sweden, and Ireland.
Disputes over customs duties and sales taxes have fuelled growing tensions with the United States over the past year, but it is unclear how this case involving China will be viewed in Washington and Brussels.
In the original 1.2 billion euro tax evasion case, Milan prosecutors investigated three managers and Amazon’s Luxembourg-based European unit over alleged tax fraud related to online sales in Italy between 2019 and 2021. According to the probe, Amazon’s algorithm allows it to sell in Italy goods from non-EU sources, mostly Chinese, without disclosing their identity, helping them avoid paying Italian sales taxes.
Under Italian law, an intermediary offering goods for sale in Italy is jointly liable for non-payment of sales taxes by non-EU sellers using its e-commerce platform. Amazon said in a previous statement that it was “committed to complying with all applicable tax laws.”
In relation to that case, Italy’s tax agency has submitted a settlement proposal to Amazon on which the US group must decide by December. Amazon’s tax position has also been investigated by the European Public Prosecutor’s Office (EPPO), which has opened its probe into its accounts between 2021 and 2024 after new EU rules imposing stricter VAT obligations on marketplaces came into force.
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Wholesale revenue dropped 12.8 per cent on a currency-adjusted basis to €4.9 billion, while direct-to-consumer (DTC) sales increased 3.4 per cent, lifting the DTC share to 32.4 per cent from 28.9 per cent.
Regionally, sales fell 6.9 per cent in Europe, Middle East and Africa (EMEA), 7.4 per cent in Asia-Pacific and 10 per cent in the Americas, with North America driving much of the decline.
Puma has reported sales of €7.3 billion (~$8.61 billion) in FY25, with currency-adjusted revenue down 8.1 per cent amid strategic reset actions.
Wholesale declined while DTC share increased.
Margins contracted and EBIT turned negative, leading to a net loss.
Q4 saw sharper declines across regions and categories.
Puma expects further sales softness and negative EBIT in FY26.
By product segment, footwear sales decreased 7.1 per cent, apparel declined 9.7 per cent and accessories fell 8.5 per cent, although selective growth was observed in running, training and premium sport style lines, Puma said in a press release.
Profitability weakened significantly during the year. Gross margin contracted 260 basis points to 45.0 per cent, impacted by promotional activity, inventory reserves, unfavourable mix and currency effects. Adjusted EBIT turned negative at €165.6 million, while reported EBIT declined to -€357.2 million after €191.6 million in one-off costs related mainly to the cost efficiency programme and goodwill impairments.
Loss from continuing operations widened to -€643.6 million, translating to earnings per share of -€4.37 versus €1.88 in the prior year.
From a balance sheet perspective, inventories rose 2.3 per cent to €2.06 billion as inventory takebacks from wholesale partners supported distribution clean-up. Working capital increased 20.2 per cent, while trade receivables and payables declined sharply in line with reduced sales and purchasing activity. Puma ended the year with additional financing capacity, including €1,202.2 million in unutilised credit lines.
Fourth quarter (Q4) performance reflected the peak impact of the strategic reset. Currency-adjusted sales declined 20.7 per cent to €1,564.9 million, with reported revenue down 27.2 per cent due to currency headwinds. The decline was driven by deliberate reductions in wholesale exposure, inventory clearance actions and lower promotional intensity.
Wholesale sales fell 27.7 per cent in Q4, while DTC revenue decreased 8.0 per cent, although DTC share increased to 41.1 per cent from 35.5 per cent. Regionally, sales dropped 12.6 per cent in Asia-Pacific, 22.2 per cent in the Americas and 24.3 per cent in EMEA.
Across product divisions, footwear sales declined 25.4 per cent, apparel fell 13.7 per cent and accessories dropped 18.2 per cent, with selective resilience in training and performance running categories.
Profitability deteriorated sharply. Gross margin declined to 40.2 per cent from 47.7 per cent due to promotions, inventory provisions and currency effects. Adjusted EBIT fell to -€228.8 million, while reported EBIT reached -€307.7 million following one-off costs linked to restructuring and impairment charges. The quarter ended with a loss from continuing operations of -€335 million.
Arthur Hoeld, CEO of Puma, said: “2025 was a reset year for us. We want to establish Puma as a top 3 sports brand globally, return to above-industry growth and generate healthy profits in the medium term. It is crucial to make the Puma brand less commercial and ensure we once again excite our consumers with attractive products, compelling storytelling and distribution in the right channels. I am satisfied with the progress we have made so far. We cleaned up most of our distribution by reducing promotions in our own channels and cutting our exposure to those wholesale channels that damage our brand’s desirability. To better position our product icons and our performance offering and tell more engaging product stories, we created the right structures inside our company. We also addressed operational inefficiencies and further optimised our cost base.”
Looking ahead, Puma expects currency-adjusted sales in fiscal 2026 to decline in the low- to mid-single-digit percentage range, with EBIT projected between -€50 million and -€150 million. Capital expenditure of around €200 million is planned as the company continues investments in brand repositioning and digital capabilities, added the release.
Fibre2Fashion News Desk (SG)
Nominal GDP, or GDP at current prices, is estimated to grow at 8.6 per cent to reach ₹345.47 trillion in FY26 against ₹318.07 trillion in 2024-25.
India’s real GDP is estimated to grow at 7.6 per cent to ₹322.58 trillion (~$3.54 billion) in FY26 compared to the first revised GDP estimate of ₹299.89 trillion for FY25 (7.1 per cent growth).
It released the new series of annual and quarterly national accounts estimates with FY23 base.
Real GVA is projected to grow at 7.7 per cent to reach ₹294.40 trillion in FY26 against ₹273.36 trillion in FY25.
Real gross value added (GVA) is projected to grow at 7.7 per cent to reach ₹294.40 trillion in FY26 against ₹273.36 trillion in FY25 (a 7.3-per cent growth rate).
Nominal GVA is estimated to grow at 8.7 per cent to hit ₹313.61 trillion during FY26, against ₹288.54 lakh crore in 2024-25.
Robust economic performance in FY26 is primarily on account of robust real growth observed in the second quarter (8.4 per cent) and third quarter (7.8 per cent).
The manufacturing sector has been the major driver of resilient performance of the economy the consecutive three fiscals after rebasing, a release from the ministry said.
Both private final consumption expenditure and grossed fixed capital formation exhibited more than 7-per cent growth rate in FY26.
Fibre2Fashion News Desk (DS)
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