On an analyst call, Puma executives reported that sales in North America fell by more than 33 percent in the fourth quarter and by 19 percent in the year, due to planned reductions in sales to off-price channels in the U.S.

The company expects global sales to sag in the low- to mid-single digits in the current year due to continued declines in North America, but Arthur Hoeld, Puma’s CEO, vowed a return to profitable growth by 2027.

“Our commitment, our North Star, to become a top three sports brand, remains unchallenged,” Hoeld told analysts. “We are very clear that it is our ambition to return to above industry growth rates as of 2027 and to return to healthy profits in the same manner.”

Fourth Quarter

Sales by Region, Channel and Category
In the fourth quarter, sales on a currency-adjusted basis declined nearly 21 percent, leading to a full-year decline of around 8 percent. The decline was primarily attributed to reset measures initiated during the second half of 2025.

CFO Markus Neubrand said, “Our reset measures can be split up mainly into three buckets. The largest impact came from cancellations of undesirable business with wholesale partners in the mass merchant [off-price] space, followed by inventory takebacks and lower direct-to-consumer (DTC) promotions to improve brand perception. From a regional perspective, the reset was particularly pronounced in the Americas, especially in the U.S., EMEA and China.”

By channel, wholesale sales were down around 28 percent in Q4 due to significant takebacks to clear excess inventory in the channel, along with actions to reduce exposure to mass merchants in North America and to phase out undesirable business in Latin America, EMEA, and Asia Pacific. In the full year 2025, wholesale decreased by 13 percent.

DTC sales dropped 8 percent in Q4, with owned-and-operated stores down about 1 percent and e-commerce falling 20 percent due to fewer promotions aimed at strengthening Puma’s brand. For the full year, DTC increased 3 percent, supported by both brick-and-mortar and e-commerce. Q4 DTC share rose substantially to 41.1 percent from 35.5 percent in Q4 2024. For the full year, the DTC share was 32.4 percent.

By region, EMEA sales decreased around 24 percent in Q4 and declined 7 percent in the full year. Lower sales were driven by weaker wholesale performance due to reduced undesired business and inventory takebacks, as well as lower DTC sales on the back of reduced promotions.

In the Americas, sales fell by 22 percent in the fourth quarter and by 10 percent on a full-year basis, mainly due to declines of 33 percent in Q4 and 19 percent in North America, respectively, resulting from the distribution cleanup in the mass merchant business in the U.S.

Sales in the Asia Pacific dropped by nearly 13 percent in Q4 and by 7 percent in the full year. This was mainly driven by a decline in the Greater China wholesale business, which was partially offset by robust growth in the DTC channel. Overall, Greater China sales declined by almost 20 percent in Q4.

From a product division perspective, footwear sales in Q4 decreased by around 25 percent due to a broad decline across most categories. Within footwear, growth was seen in the Sportstyle Prime and Select segment, driven by the Speedcat family, with particularly strong performance in the Asia Pacific. However, the training category remained resilient and delivered healthy growth. Despite an overall decrease in the running category due to the distribution cleanup, performance running showed strong growth, driven by the success of the Velocity NITRO 4.

Apparel sales fell 14 percent in Q4, reflecting widespread declines across categories, partially offset by growth in training, with continued strong momentum in Hyrox. Accessories decreased by 18 percent in the past quarter, mainly due to golf. On a full-year basis, all product divisions declined in the high single-digits.

Fourth-Quarter Profitability
Gross margin declined 750 basis points in the quarter to 40.2 percent. The drop was primarily attributable to increased promotions in the wholesale channel, inventory reserves resulting from the distribution clean-up and unfavorable currency effects. These effects were partially offset by an improved product mix, a favorable distribution channel mix with a higher DTC share compared to the previous year’s quarter, and lower freight costs. Additionally, lower sourcing costs, including duties, were a tailwind that fully offset the negative impact from U.S. tariffs.

Operating expenses (OPEX), adjusted for one-time effects, decreased 7.8 percent in the quarter to €887.4 million, driven by the cost-efficiency program and lower DTC channel costs due to lower sales compared to the previous-year quarter. Marketing expenses as a percentage of sales increased on lower fourth-quarter sales. Overall, lower sales contributed to a substantial rise in the OPEX ratio, adjusted for one-time effects, to 56.7 percent from 44.7 percent a year ago, which was partially offset by currency tailwinds.

Adjusted EBIT, excluding one-time effects, decreased to a loss of €228.8 million compared to a year-ago profit of €85.7 million due to the sales decline and a lower gross profit margin. Puma incurred one-time charges of €78.9 million in the fourth quarter related to the cost-efficiency program and a goodwill impairment. Consequently, the reported EBIT came in at negative €307.7 million against positive €85.7 million a year ago, resulting in a reported EBIT margin of negative 19.7 percent against positive 4.0 percent a year ago.

Puma’s reported loss from continuing operations amounted to €335.0 million, or negative €2.27 a share, against a profit of €24.3 million, or €0.16.

Full Year 2025

Sales by Region, Channel and Category
Sales remained broadly stable in the first half of 2025; they declined notably in the second half of the year, primarily reflecting the strategic reset measures initiated in the third quarter of 2025. Consequently, sales for the full year 2025 decreased by 8.1 percent (ca) to €7.29 billion, with a decline across all regions and product divisions. Currencies, especially the Argentine Peso, U.S. Dollar and Turkish Lira, were a headwind, resulting in a reported sales decline of 13.1 percent.

Adjusted EBIT, excluding one-time effects, decreased to a loss of €165.6 million compared to a profit of €548.7 million due to the sales decline and a lower gross profit margin. Puma incurred one-time effects of €191.6 million, mainly related to the cost efficiency program and goodwill impairments. Costs associated with the cost efficiency program in particular comprised personnel expenses, the closure of unprofitable stores and other non-operating costs. Consequently, the reported EBIT came in at a loss of €357.2 million against a profit of €548.7 million.

Loss from continuing operations came in at €643.6 million, or €4.37, versus profit from continuing operations of €280.7 million, or €1.88.

Considering the net loss recorded in the year and to maintain liquidity, Puma’s management board and the supervisory board will propose at the 2026 Annual General Meeting that no dividend be paid for 2025.

Transformation Update

Providing an update on Puma’s three-year transformation plan launched in the third quarter of 2025, Hoeld noted that 2025 was a “reset” year with 2026 representing a “transition” year with follow-up actions and 2027 positioned as the year to return to profitable growth.

Among the changes during the reset has been a focus on “cleaning up undesirable wholesale business, reducing our overstock with wholesale partners,  at the same time, reducing our discounts on our own channels,”

Hoeld said, “When it comes to undesirable wholesale business, we will decrease our business by the double digits over the next couple of years until the end of this year. We have already started to reduce our discounting policy in our own e-commerce channels as well in our retail channels. This had already a significant impact, not just on our top line, but more importantly, that people and consumers start to see us again as a serious brand and as a brand that commands value.”

The CEO also said Puma remains “committed to focusing on streamlining our organization,” while indicating the brand is making progress on its goal of reducing 20 percent of its corporate workforce over 2025 and 2026. Hoeld said, “500 of those positions were reduced in the first half of 2025 within the so-called Next Level program. One-third of the additional 900 positions we have reduced in the second half of last year. That leaves another two-thirds of those 900 positions that we’re actively engaging with at this point in time. We are committed, and we’re executing to become a better, more streamlined, but also more efficient organization going forward.”

Organizationally, Puma appointed Andreas Hubert as chief operating officer last July and appointed Maria Valdes as chief brand officer, extending her responsibilities from being in charge in terms of products only to now adding a responsibility for go-to-market and brand marketing. He said the move aims to develop and bring concepts to mark more efficiently.

Hoeld said, “It’s our foremost goal to accelerate Puma’s brand momentum in order to achieve commercial success, and the first step here really has to be to drive our brand through the multitude of product launches, integrated storytelling, and a much more succinct go-to-market process to subsequently achieve commercial success.”

Hoeld said Puma will look to reinforce its positioning around sports and believes Puma already has strong sports assets, noting that 10 of the brand’s soccer teams qualified for the upcoming World Cup, partnerships with Hyrox and Formula 1, and several star ambassadors, including the German long-distance runner Amanal Petros, Swedish pole vaulter Armand “Mondo” Duplantis and Indiana Pacers’ star guard Tyrese Haliburton. he also cited. He also believes Puma has numerous innovation stories but will be more focused on getting its message out.

He said, “Our brand will be built on community platforms, connecting with consumers around the world, connecting in new, different, and engaging ways to really set the tone and set the standard where Puma will be at the forefront of conversations again.”

FY 2026 Outlook Reflects Transition Year for Puma
Puma said, “Following a pivotal reset in 2025, during which Puma implemented decisive measures to tackle brand challenges, restore inventory balance, and lay the groundwork for a stronger, more focused future, 2026 is set to be a year of transition for the company. Throughout 2026, Puma will continue its efforts to streamline distribution and further reduce inventory levels. The reduction in inventory is targeted to be achieved through disciplined management of purchasing volumes and targeted product clearance initiatives. Cost efficiency measures initiated in the previous year will remain in effect. These include the continued organizational redesign, further simplification of the product portfolio and the completion of the reduction of approximately 1,400 corporate roles since the beginning of 2025.

“During this transitional period, Puma’s key priorities are to prepare the organization for sustainable success, safeguard financial stability and position the company for a return to healthy, above-industry growth from 2027 onwards. The brand and product strategy for 2026 will center on Puma’s focus areas: Football, with a prominent presence at the 2026 World Cup; Running, driven by the NITRO platform; Training, underpinned by Puma’s exclusive partnership with HYROX; and Sportstyle Prime & Select, where the company aims to strengthen its portfolio by leveraging its heritage and enhancing storytelling.

“Puma expects ongoing geopolitical and macroeconomic uncertainties in 2026. The anticipated currency-adjusted sales decline in the low- to mid-single-digit percentage range is mainly attributable to lower sales in North America, reflecting measures to streamline distribution, while sales growth in Latin America and the Middle East, Africa, and India can only partially offset this.

“The company projects an operating result (EBIT) between €-50 and €-150 million, including one-time effects related to the implemented cost efficiency program. Capital expenditures (CAPEX) are projected at around €200 million in 2026, focusing on digital infrastructure, DTC channels, and key initiatives to strengthen Puma’s long-term competitiveness. While 2025 served as a year of strategic reset and 2026 represents a period of transition, Puma is confident that the measures implemented thus far and those planned for the near future are critical to re-establishing growth from 2027 onwards. These actions are expected to generate healthy profits and support the company’s ambition to become one of the top three sports brands globally in the medium term.”

Image courtesy Puma