EXEC: Puma Earns Stock Upgrade as Anta Partnership Seen Boosting China Sales

Citi Research upgraded Puma to “Buy” from “Neutral” as the investment firm sees a “potential major mid-term growth opportunity” in China for the brand following its formation of a strategic partnership with Anta Sports.

The partnership was marked by Anta’s $1.8 billion acquisition of a 29.06 percent stake in Puma in January 2026, making it Puma’s largest shareholder. In making the acquisition, Anta said it is not seeking a full takeover of Puma and intends to maintain its operational independence but also indicated it will seek “adequate representation” on the company’s supervisory board.

Analyst Monique Pollard said her team’s analysis found that Anta could drive a 36 percent increase in Puma’s sales at a compound annual growth rate (CAGR) in China on a constant currency (c-c) basis from FY26 to FY28, or a positive 20 percent APAC revenue CAGR on a cc-basis over those three years.

The expected China growth would lift Puma’s sales by 6 percent above analysts’ consensus in FY27 and by 13 percent in FY28, according to Citi’s estimates.

Anta is seen as China’s largest sports brand and the third largest globally, behind Nike and Adidas. It owns the rights to the Fila brand in China, Hong Kong and Macao, as well as to the Descente brand in Mainland China. Anta is also the largest shareholder of Amer Sports, which includes Arc’teryx, Salomon and Wilson.

Pollard’s upgrade was also based on the expectation that Puma has “meaningful scope for GM expansion,” including an increase of 240 basis points (bps) in FY26, 50 bps in FY27 and 140 bps in FY28. She sees margin benefits from channel mix, foreign exchange, regional mix, and reduced promotions will “more than offset headwinds from sourcing/freight.”

Under CEO Arthur Hoeld, Puma has undergone a turnaround plan focused on scaling back on discount wholesale channels to improve the brand’s desirability and drive full-price selling. The plan also emphasizes direct-to-consumer (DTC) sales, aiming to align its channel mix with industry averages.

Pollard said Puma’s margins will benefit from the increased emphasis on DTC sales. The analyst also expects Puma’s margins to benefit from accelerated growth in “higher margin” China sales, as well as further shifts to DTC in China.

Image courtesy Puma