Puma SE CEO Arthur Hoeld reported Thursday morning that the company was off to a solid start to its transition year in 2026. Reported sales, which were said to be supported by the clearance of elevated inventories – mainly through selected partners in the wholesale channel – took a significant hit from foreign currency exchange rates, especially with the U.S. dollar, Turkish lira and Argentine peso.

“We have managed to reduce our inventory levels faster than planned, streamlined our product portfolio and addressed operational inefficiencies. We have also made progress in further improving our organisation and our operational model,” he shared in the company’s 2026 first quarter earnings release. “For the remainder of the year, we will continue to focus on improving the quality of our distribution, cost base and cash management. In doing so, we are laying the foundations for future growth.”

Hoeld said Puma is “on track” to establish the brand as the Top 3 sports brands globally, return to above-industry growth and generate healthy profits in the medium term.”

2025 First Quarter
In the first quarter, currency-adjusted (ca) sales were down 1.0 percent year-over-year (y/y) to €1.86 billion, down from €1.99 billion in the year-ago Q1 period. Currencies, especially U.S. dollars, Turkish lira and Argentine peso were said to be a headwind, causing a reported sales decline of 6.3 percent on a reported basis.

Channel Summary
(All percentages expressed in currency-adjusted terms)

The Wholesale business decreased by 2.8 percent y/y to €1.34 billion on a currency-adjusted basis, said to be due to a lower demand from retail partners in the EMEA region.

The Direct-to-Consumer (DTC) business grew 3.8 percent y/y, reaching €528.1 million. The increase was said to be primarily attributed to sales growth of 5.7 percent in owned & operated retail stores, driven by inventory clearance through own outlet stores, which was supported by targeted promotional activities in that channel.

The company said that, although e-commerce promotions were reduced, sales experienced a modest increase of 0.6 percent, supported by additional e-commerce marketplaces across the APAC region.

The DTC share for Puma increased to 28.3 percent of total sales in Q1 2026, up from 27.5 percent during the prior-year Q1 period.

Region Summary
(All percentages expressed in currency-adjusted terms)

EMEA region sales decreased 10.4 percent y/y to €774.5 million. The decline was reportedly driven by a weaker underlying demand in the region, a muted Wholesale performance due to the reduction of undesirable business and lower sales in the Middle East amid ongoing conflict in the region.

Americas region sales increased 6.1 percent y/y to €655.6 million. However, the company said significant currency effects, mainly the weaker U.S. dollar and Argentine peso, caused a reported sales decline of 1.8 percent on a reported basis.

  • Latin America saw a growth rate of 10.5 percent y/y in the quarter, reportedly supported by improving underlying demand, while North American sales rose by 2.3 percent y/y.
  • Inventory clearance had a positive impact on both sub-regions, outweighing the effects of reduced undesirable wholesale business in the U.S. market.

Asia/Pacific region sales were up 7.9 percent y/y to €433.8 million, also said to have benefitted from inventory clearance.

  • The positive performance in Greater China of 9.0 percent was said to be primarily attributable to DTC growth across both owned & operated retail stores, as well as e-Commerce channels. This was said to be further supported by a robust Chinese New Year performance in addition to sustained strong demand for low profile, especially the Speedcat family.
  • The Rest of Asia/Pacific was up 7.4 percent y/y, reportedly supported by the low profile category overall and a strong DTC performance in South-East Asia.

Product Category Summary
(All percentages expressed in currency-adjusted terms)

Footwear sales broadly decreased 2.3 percent y/y to €1.09 billion . However, the company said both Running and Training saw strong growth, driven by Nitro styles and the rapid expansion of Hyrox products.

Apparel sales increased 0.9 percent y/y to €546.3 million. In addition to the Golf and Training categories, Football (Soccer) also demonstrated robust performance in Apparel, reportedly driven by the sale of Puma jerseys of the 11 football teams – including Portugal – that have qualified for the upcoming FIFA World Cup 2026 in the U.S., Canada, and Mexico. By contrast, Apparel sales in Core, Sportstyle and Kids were down year-over-year.

Accessories sales reportedly remained “relatively stable” at €227.9 million in Q1, compared to €235.0 million in Q1 2025, with the Golf category delivering a positive performance.

Profitability & Expenses

Gross Margin increased 60 basis points to 47.7 percent of sales in Q1, compared to 47.1 percent in Q1 2025, reportedly  supported by reversals of inventory reserves, lower freight costs, and a higher DTC share, partially offset by wholesale promotions, product and regional mix effects as well as currency effects.

Royalty and Commission Income increased 13.0 percent y/y to €23.9 million, said to be mainly due to a stronger Formula 1 business on the back of an additional race compared to the first quarter of 2025.

Operating expenses (OpEx), adjusted for one-time effects, decreased 5.5 percent y/y to €848.5 million from €897.9 million in Q1 2025, reportedly due to positive effects of the cost efficiency program and favorable currency movements, which more than offset higher costs in the DTC channel.

  • Marketing Expenses were down from last year’s level in both absolute terms and as a percentage of sales due to phasing effects across partnerships and campaigns. As OpEx decreased less pronounced than sales, the OpEx ratio, adjusted for one-time effects, increased from 45.1 percent in Q1 2025 to 45.5 percent in Q1 2026

Adjusted EBIT, excluding one-time  effects, increased to € 64.4  million in Q1 from €61.3 million in Q1 2025, which was said to be due to a higher gross profit margin and lower OpEx. Puma reportedly incurred one-time negative effects of €12.6 million mainly associated to personnel expenses related to the cost efficiency program.

EBIT came in at €51.9 million in Q1, up 19.6 percent from €43.4 million in the prior-year Q1 period, resulting in an EBIT margin of 2.8 percent, (Q1 2025: 2.2 percent).

The Financial Result was tallied at negative €15.6 million in Q1, but improved significantly against last year’s financial result of negative €38.5 million, mainly due to favorable currency movements, especially U.S. Dollar and Mexican Peso.

Interest Expenses on bank debt increased slightly against prior year.

Income Taxes amounted to €9.8 million (Q1 2025: €3.8 million), driven by higher earnings before taxes, representing a more normalized tax-rate of 27.0 percent (Q1 2025: 78.2 percent).

Consequently, Profit from Continuing Operations  amounted  to €26.5  million in Q1, compared to €1.1 million in Q1 2025, and EPS from Continuing Operations came in at €0.18 (Q1 2025: €0.00).

Outlook
Puma said it expects ongoing geopolitical and macroeconomic uncertainties in 2026. The current outlook does not account for potential effects arising from the conflict in the Middle East or the U.S. Supreme Court’s decision regarding U.S. tariffs dated February 20, 2026. Puma reiterated its full-year outlook, as originally published on February 26, 2026, said to be supported by a solid performance at the beginning of the year.

The anticipated currency-adjusted sales decline in the low- to mid-single-digit percentage range was said to be mainly attributable to lower sales in North America, reflecting measures to streamline distribution, while sales growth in Latin America and Middle East, Africa & India can only partially compensate for this.

The company projects an operating result (EBIT) between negative €50 million and negative €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.

The Wrap
While 2025 served as a year of strategic reset and 2026 represents a period of transition, Puma management said they are confident that the measures implemented thus far and those planned for the near future, are critical to re-establishing growth from 2027 onwards. These measures 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.

Images, data and table courtesy Puma SE