Back on the podium: Puma's strategy for a top-tier comeback

In 2025, Puma recorded the highest net loss in its corporate history. The Herzogenaurach-based sporting goods manufacturer is in the midst of a profound strategic shift. This shift is painful in the short term but is intended to enable a return to the top tier in the long run. During a press call on Thursday, CFO Markus Neubrand confirmed the historic loss. He emphasised that the result must be viewed in relation to the company's current size.

CEO Arthur Hoeld went even further during the press call, following the presentation of the latest business figures on Thursday. He unequivocally stated the overarching goal: “The goal for Puma as a brand will be to be back among the top three on the podium in the future.”

What is the specific strategy behind this plan? What path does the company envision to reclaim its top position?

Back to its roots

The starting point for this journey is the brand's sporting heritage. “The foundation of our brand and our future success are based on four very clear pillars,” emphasised Hoeld, with innovative technologies at the forefront. With models like the Nitro sneaker, Puma continues to claim a leading role in performance running. The company possesses technologies that enable athletes to perform better and overcome their daily sporting challenges.

Technology alone is not enough. Puma intends to reactivate its 77-year history more strongly, following the major celebration of its sporting heritage for its anniversary in 2023. Its history will be utilised much more intensively in the future than in recent years. The four defined DNA categories are an expression of this focus: Football; Running; Training; and Select/Prime in the style sector. Major events such as the FIFA World Cup, international marathon highlights, and involvements in handball and motorsport are intended to reinforce sporting credibility and restore the brand's appeal.

Training and Hyrox: a growth area with a halo effect

The expansion of the training segment is closely linked to this athletic repositioning. Puma has organisationally separated training from running and established it as an independent unit, signalling the strategic importance of this area.

At the centre is the partnership with Hyrox, the internationally growing fitness racing series. Hoeld describes it as a beacon with an impact that extends far beyond immediate sales. The recently launched competition shoe, specifically developed for Hyrox, marks a milestone. The response has been exceptional, with reports of record sales at events such as the one in Las Vegas.

Currently, training accounts for only a single-digit percentage of total revenue. Puma expects this share to increase significantly. The halo effect is crucial, as Hyrox combines performance, community and lifestyle. This combination taps into a new, ambitious target group that does not define itself solely through classic running.

In addition to performance, culture is also set to play a more significant role. The relaunch of the Speedcat sneaker did not go as hoped. High market penetration and pressure from discounts hampered its momentum. Following corrective measures, such as fewer promotions and more targeted distribution, management now sees renewed potential for 2026. According to the company, new variations like wedge and ballerina versions are performing significantly better. In parallel, the brand's iconic Suede model is making a comeback. Activations at Paris Fashion Week and around the NBA All-Star Weekend in Los Angeles also mark an attempt to more closely intertwine sports culture and lifestyle.

Transformation behind the scenes

As much as performance and training are in the foreground, a return to the podium cannot be achieved without structural changes behind the scenes. The entry of the Chinese apparel and sporting goods group Anta as a strategic investor marks the beginning of a new ownership structure for Puma.

In the short term, management anticipates potential pressures on its China business, but sees significant long-term opportunities. The company is aware that some franchise and wholesale partners may react with uncertainty to Anta's strong direct-to-consumer model and could adjust their ordering behaviour. Nevertheless, Hoeld emphasises that they are confident in the future partnership. It is still too early to draw firm conclusions. The intention of the parent company of brands like Atomic, Fila, Jack Wolfskin, Salomon and Wilson to acquire a 29.06 percent stake in Puma from the French billionaire Pinault family for approximately 1.5 billion euros was only confirmed at the end of January, just under four weeks ago.

It is already clear, however, that Puma is also making internal changes. The leadership team of the Herzogenaurach-based sporting goods manufacturer has been restructured. With the new COO Andreas Hubert, who took on the role last September, and the expanded role of Maria Valdes as chief brand officer, Puma is consolidating product, brand marketing, sports marketing and go-to-market under one roof. The goal is a more efficient brand management model.

In Europe, its home market, the organisation has also been streamlined. Disparate country and regional structures had led to a lack of consistency in processes and brand management. The new operating model establishes three streamlined clusters. These combine clearer central control with greater regional responsibility.

In the future, Puma is set to present a more unified front in Europe and bundle activities in its core categories more clearly. The new structure is intended to enable faster, more coordinated decisions while delivering tangible efficiency and cost benefits. This European reorganisation is part of a broader corporate simplification. Hierarchies have been reduced worldwide, around 20 percent of jobs were cut between 2025 and 2026, and product range complexity has been lowered.

Distribution and inventory: the painful clear-out

The reset has its most profound impact on the market itself. Puma has reduced its wholesale business in strategically disadvantageous channels by a double-digit percentage, particularly in the US. The brand has been deliberately withdrawn from distribution environments where it should not have been present. In parallel, discount rates in its own channels were lowered and the product range was streamlined by a double-digit percentage.

The figures illustrate the scale of this clear-out. In wholesale, currency-adjusted sales in the fourth quarter of the 2025 financial year fell by 27.7 percent to 921.4 million euros. The direct-to-consumer business recorded a decline of 8.0 percent to 643.5 million euros. Regionally, the impact was felt in all core markets. In the Americas, currency-adjusted revenues fell by 22.2 percent; in the Europe, Middle East and Africa region by 24.3 percent; and in Asia/Pacific by 12.6 percent. For the full year, the wholesale business decreased by 12.8 percent on a currency-adjusted basis to 4.94 billion euros.

On the other hand, there is a remarkable counter-trend. The direct-to-consumer business grew by 3.4 percent on a currency-adjusted basis, increasing its share of group revenue to 32.4 percent from 28.9 percent the previous year. Inventory clearance remains a major undertaking. Significant excess stock was taken back from retail partners in 2025 and is being sold off through the company's own factory outlets and selected partners. Management categorically rules out the destruction of surplus goods: “We do not destroy our products in any form.”

Back on the podium – but not at any price

Financially, 2026 remains challenging. Puma expects a currency-adjusted sales decline in the low to mid-single-digit percentage range. Earnings before interest and taxes (EBIT) is expected to be between minus 50 and minus 150 million euros. At the same time, the gross margin is set to improve significantly, while investment in the direct-to-consumer business and digital infrastructure continues.

The path back to the podium is therefore not a sprint, but a marathon. The brand is intended to grow in quality, become more profitable and present itself as a global sports brand, not fragmented as in the past. The historic loss of 2025 marks the low point of this transformation. Whether it will be seen as a necessary liberating move in a few years depends on whether Puma succeeds in consistently implementing its strategic levers and delivering on its promise to compete at the very top again.

This article was translated to English using an AI tool.

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