Fashion
Vietnam’s GDP growth beats forecasts despite US tariff pressure
Vietnam’s economy has expanded by 8.5 per cent year on year in the fourth quarter of 2025, outperforming expectations and lifting full-year GDP growth to 8 per cent, according to analysis by BMI, a Fitch Solutions company. Despite falling short of the government’s 8.4 per cent target, the result exceeded BMI’s earlier 7.4 per cent forecast.
International trade was the key growth driver. Exports and imports surged 16.3 per cent and 17.1 per cent respectively in 2025, a notable rebound despite Vietnamese shipments to the US facing 20 per cent tariffs imposed under President Donald Trump. Manufacturing and construction together contributed around 3.5 percentage points to overall growth, helped by strong real estate activity and robust goods production.
Looking ahead, BMI now expects GDP growth of about 7.2 per cent in 2026, revising up its earlier 7 per cent estimate. Investment growth between 2023 and 2025 has nearly doubled, expanding productive capacity, BMI said in a release.
In parallel, general secretary To Lam has approved reforms aimed at liberalising the private sector, including preferential credit for small and medium enterprises and enhanced tax deductions for research and development.
While growth is unlikely to reach the government’s longer-term 10 per cent ambition during 2026-2031, faster reform implementation could lift near-term output. However, risks remain balanced. A sharp property market correction or a potential increase in US tariffs to 40 per cent, if Vietnam is accused of trans-shipping Chinese goods, could weigh heavily on growth.
Vietnam’s economy grew strongly in 2025, with Q4 GDP up 8.5 per cent, lifting full-year growth to 8 per cent and beating BMI forecasts despite missing the 8.4 per cent target.
Trade and investment drove growth even as US tariffs weighed.
GDP is seen growing 7.2 per cent in 2026, supported by private-sector reforms, though tariff risks persist.
Fibre2Fashion News Desk (HU)
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)
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