Reset strategy impacts results: Puma falls deep into the red

German sportswear company Puma presented weak figures for the final quarter and the full 2025 financial year on Thursday morning. Strategic 'reset' measures introduced during the year significantly impacted revenue and profit. The group anticipates another transitional year with declining revenues for 2026.

According to the figures provided, revenue in the fourth quarter amounted to 1.56 billion euros (1.84 billion dollars). This represented a decrease of 27.2 percent compared to the same period last year. Adjusted for currency effects, revenues fell by 20.7 percent. For the full year, currency-adjusted revenue decreased by 8.1 percent to 7.29 billion euros. The results were therefore significantly below the previous year's figures.

Group profit falls deep into the red

The decline in profit was even more pronounced. Operating profit (EBIT) was clearly negative in the final quarter. Adjusted EBIT amounted to minus 228.8 million euros, following a positive figure of 85.7 million euros in the same period last year. Including one-off effects, the reported EBIT was minus 307.7 million euros.

On an annual basis, the company also failed to match the previous year's profit. Adjusted EBIT fell from 548.7 million euros to minus 165.6 million euros. The group's net profit, which stood at 281.6 million euros in the previous year, plummeted to minus 645.5 million euros. The company explained that the decline was primarily due to the strategic reset measures and one-off effects amounting to 191.6 million euros.

Direct-to-consumer business heavily impacted

Puma was particularly affected in the 2025 financial year by the strategic streamlining of its wholesale business; product take-backs; and a reduced discount policy in its direct-to-consumer (D2C) business.

Quarterly wholesale revenue decreased by 27.7 percent on a currency-adjusted basis to 921.4 million euros, while the D2C business recorded a decline of 8.0 percent to 643.5 million euros. Regionally, Puma experienced double-digit declines in all core markets. In the Americas, currency-adjusted revenues fell by 22.2 percent; in EMEA by 24.3 percent; and in Asia/Pacific by 12.6 percent. The group attributes the decline in the Americas to a targeted reduction in business with large-scale retailers in the US market. The decline in EMEA is attributed to a weaker wholesale business resulting from the deliberate reduction of sales in channels that are strategically disadvantageous for the brand, as well as product take-backs.

For the full year, the wholesale business also saw a currency-adjusted decline of 12.8 percent to 4.94 billion euros. The D2C business, however, grew by 3.4 percent on a currency-adjusted basis, increasing its share of group revenue to 32.4 percent from 28.9 percent in the previous year.

Declines across all product divisions

Puma also had to accept setbacks at the product level. Within the product divisions, footwear sales fell by 25.4 percent on a currency-adjusted basis in the fourth quarter to 820.9 million euros, driven by declines in most categories. Contrary to the general trend, the Training category recorded healthy growth. The Running division also presented a mixed picture. While overall revenue decreased due to a deliberate reduction in sales through channels not conducive to brand strategy, Performance Running grew significantly. This was partly thanks to the success of the Velocity Nitro 4 running shoe.

Apparel sales decreased by 13.7 percent on a currency-adjusted basis to 568.8 million euros. Growth in the Training category, particularly due to continued strong demand for HYROX products, was able to partially offset the decline. Sales of accessories fell by 18.2 percent on a currency-adjusted basis to 175.3 million euros, mainly due to weak performance in the Golf category.

For the full year, all product divisions recorded declines. Revenue in the footwear segment fell by 7.1 percent on a currency-adjusted basis to 4.11 billion euros. This was partially offset by growth in the Sportstyle Prime & Select categories, driven in particular by the Speedcat shoe model, and by increased demand in the Running category. In apparel, currency-adjusted revenue decreased by 9.7 percent to 2.33 billion euros. This was primarily impacted by weaker performance in the Sportstyle and Teamsport categories, while Training, Basketball and Motorsport were able to partially counteract this trend. The accessories product division saw a currency-adjusted revenue decline of 8.5 percent to 853.9 million euros, mainly as a result of falling revenues in the Golf category.

Return to growth targeted from 2027

CEO Arthur Hoeld offered a sober assessment of the results. The company has streamlined distribution, reduced discounts in its own channels and decreased its presence in wholesale channels detrimental to brand strategy. “I am satisfied with the progress we have made so far,” said Hoeld.

At the same time, the CEO announced that 2026 will be another transitional year. Puma is continuing to optimise its distribution channels and reduce inventory levels. This includes disciplined management of procurement orders and targeted product sell-offs. The cost-efficiency programme initiated in the previous year will be continued. This includes a leaner organisational structure, a smaller product range and the completion of the reduction of around 1,400 administrative positions, which has been underway since the beginning of 2025. The brand and product strategy will focus on four key categories: Football, Running, Training and Sportstyle Prime & Select.

For the current financial year, Puma expects a currency-adjusted revenue decline in the low to mid-single-digit percentage range, given ongoing geopolitical and macroeconomic uncertainties. The operating result (EBIT) is expected to be in the range of minus 50 to minus 150 million euros, including one-off effects related to the cost-efficiency programme.

From 2027, the measures introduced are intended to enable sustainable growth and establish Puma among the top three leading sports brands worldwide in the long term.

This article was translated to English using an AI tool.

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